What is less-than-truckload (LTL)?

Less-than-truckload (LTL) is a freight shipping method where multiple shippers share space on the same truck. Unlike full truckload (FTL), where a single shipment fills an entire trailer, LTL allows smaller shipments — often between 1 and 6 pallets — to be combined with others traveling in the same direction.

In supply chain management, LTL is a cost-effective and flexible solution for businesses that don’t need a full trailer but still require reliable transportation.

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How less-than-truckload works in the supply chain

• Shared capacity: Multiple shipments from different companies are consolidated onto one truck, each paying only for the space they use.
• Hub-and-spoke network: LTL carriers often move shipments through a series of terminals and cross-docks before final delivery.
• Size and weight range: LTL typically applies to shipments weighing between 150 and 15,000 pounds.
• Freight class: Pricing for LTL shipments is influenced by freight classification, which considers weight, density, handling, and liability.
• Technology enablement: Transportation management systems (TMS) and visibility platforms help manage consolidation, provide tracking, and optimize routing.

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Why it matters

• Cost efficiency: Businesses pay only for the space their freight occupies, making it affordable for smaller loads.
• Flexibility: LTL works well for companies that ship frequently but don’t always have large volumes.
• Accessibility: Expands shipping options for small and mid-sized businesses without requiring full truckload volumes.
• Sustainability: Consolidated loads reduce empty miles and improve truck utilization, lowering emissions.
• Service levels: Many LTL carriers provide additional services like liftgates, residential delivery, or inside delivery.

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Common questions about less-than-truckload (LTL)

How is LTL different from FTL?
FTL dedicates an entire truck to one shipment, while LTL combines smaller shipments from multiple shippers. LTL is usually more cost-effective for smaller loads but can take longer due to multiple stops.

When should a business choose LTL shipping?
LTL is ideal for shipments that are too large for parcel but too small to fill a truck. It’s commonly used for palletized freight between 150 and 15,000 pounds.

Does LTL take longer than FTL?
Yes. Because shipments are consolidated and routed through terminals, LTL transit times are usually longer than direct FTL shipments.

Is LTL more prone to damage?
Potentially. Since LTL shipments are handled multiple times during transfers, there’s a slightly higher risk of damage compared to sealed FTL loads. Proper packaging is essential.

Can LTL shipments be tracked in real time?
Yes. Modern TMS platforms and visibility solutions allow businesses to track LTL shipments across carrier networks with predictive ETAs.

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Putting it all together

Less-than-truckload (LTL) shipping is a flexible, affordable, and widely used transportation option in supply chain management. By consolidating smaller shipments onto shared trucks, it helps companies reduce costs and improve sustainability while maintaining reliable delivery.

Although it may involve longer transit times and more handling compared to FTL, LTL is a vital tool for businesses that need to move freight regularly without paying for unused trailer space.

In short: less-than-truckload (LTL) is a shipping method where smaller shipments are combined onto one truck, offering cost efficiency and flexibility for businesses that don’t require a full trailer.