What Is LTL (Less Than Truckload) Shipping and How Does It Work?

Imagine running a small business that needs to ship a few pallets of goods. Renting an entire truck doesn’t really make sense, right?

That’s exactly where LTL shipping – Less Than Truckload – comes in. With this method, you only pay for the space your cargo actually takes up, not for the whole truck.

But do you really know how LTL works, how it differs from the more well-known FTL (Full Truck Load), and what its pros and cons are? Don’t worry if you’re unsure – this article will clear everything up.

What Is LTL Shipping?

LTL (Less Than Truckload) shipping, also known as partial truckload or groupage freight, is a common term in the logistics industry. It refers to transporting smaller shipments that do not require an entire truckload.

In this case, the truck’s cargo space is shared between shipments from different shippers. This way, each party only pays for the space they use – helping to significantly reduce transportation costs.

When and Why Is LTL Shipping Used?

Wondering when it’s worth choosing LTL? It’s the perfect option for businesses that ship relatively small batches of goods and don’t need to rent a full truckload.

LTL shipping is especially popular for perishable goods, food products, spare parts, and deliveries that need to be distributed to multiple locations quickly. Companies often turn to LTL when they want to cut transport costs and maintain flexible delivery schedules. This model allows for regular shipments of smaller loads without overpaying for unused truck space.

In short: LTL is the best choice when your shipment isn’t large enough to justify full truckload (FTL) shipping. We’re usually talking about goods packed on pallets or in unitized packaging, which are then consolidated into one truck.

The whole process is like a well-organized bus trip: one vehicle carries many passengers (in this case, different shipments), and each one gets off at its specific destination.

That’s why this type of transport is so widely used by manufacturers and distributors who care about cost-efficiency and delivery flexibility.

LTL vs. FTL – What’s the Difference?

The main difference between LTL and FTL (Full Truckload) lies in how the truck’s capacity is used. In LTL shipping, the truck is shared between several smaller shipments, often from different clients. In FTL, one company rents the entire truck for their cargo, regardless of whether they fill it entirely or not.

LTL is more cost-effective for small loads and offers more flexibility.

FTL, on the other hand, is a better fit for large, uniform shipments when speed, direct delivery, and reduced risk of damage are priorities.

In summary:

• FTL uses the entire truck exclusively for one customer.
• LTL involves transporting smaller loads that don’t fill the truck.

Advantages and Disadvantages of LTL Shipping

Before choosing LTL (Less Than Truckload) shipping, it’s worth looking at both the benefits and drawbacks. This will help you decide if it’s the right solution for your business.

Advantages of LTL Shipping

The biggest advantage of LTL shipping is savings. It’s ideal for smaller loads that don’t require a full truck. Since several customers share the truck, costs are split among all participants – significantly reducing your expenses.

But it’s not just about cost. Even though LTL involves more handling and transfer points, modern tracking systems, professional logistics services, and precise shipment management ensure it’s a safe and effective option – even for more sensitive goods.

LTL also provides flexibility. You can ship exactly what you need, without waiting to fill a truck. Plus, there are added services like door-to-door delivery, warehousing, and real-time tracking.

Because LTL services are so widely available, it’s easy to find a reliable carrier who can complete your shipment quickly and efficiently.

Disadvantages of LTL Shipping

Naturally, LTL shipping also has its downsides. Most notably, longer delivery times. Since the truck carries goods from various shippers, shipments are often stored and consolidated, which means delivery from point A to point B might take longer than FTL.

Managing multiple shipments at once also increases administrative work, requires more detailed planning, and comes with a higher risk of delays. Initial warehousing before further shipping can also be a drawback – especially for time-sensitive products.

Still, despite these drawbacks, well-organized LTL freight shipping remains a great solution, especially if you’re aiming to save money and ship smaller loads regularly. To get the most out of LTL, it’s always best to discuss details with your carrier. That way, you’ll receive a customized offer tailored to your company’s exact needs.

Summary

If you don’t need to fill an entire truckload and your goods require fast delivery, LTL shipping is a flexible and certainly more cost-effective solution than full truckload (FTL) transport.

Of course, like any shipping method, LTL has its limitations — such as slightly longer delivery times or more complex logistics. However, with proper planning and support from logistics professionals, it can be a highly efficient and profitable alternative to other transport services.