What is LTL Shipping?

If you’re shipping freight that doesn’t fill an entire truck, you’re likely looking at Less-Than-Truckload (LTL) shipping. This logistics method allows businesses to transport smaller freight quantities by sharing truck space with other shippers, making it a cost-effective solution for companies that don’t have enough cargo to justify hiring a full truck.

Understanding LTL shipping is essential for businesses of all sizes, from small e-commerce operations to mid-sized manufacturers. This guide will walk you through everything you need to know about LTL shipping, including how it works, when to use it, and how it compares to other freight options.

LTL Shipping Definition

Less-Than-Truckload (LTL) shipping is a freight transportation method where multiple shippers share space on the same truck, with each paying only for the portion of the trailer their cargo occupies. Instead of booking an entire truck for a small shipment, businesses can ship palletized freight alongside cargo from other companies, sharing both the truck space and the transportation costs. This makes LTL an economical choice for shipments that are too large for parcel carriers but too small to fill a full truck.

LTL carriers operate through a hub-and-spoke network, where freight moves through multiple terminals and distribution centers before reaching its final destination. While this system may result in longer transit times compared to dedicated truckload shipping, it provides significant cost savings and flexibility for businesses shipping between 150 and 15,000 pounds of freight. The pricing is typically based on factors including weight, dimensions, freight class, origin, destination, and any special handling requirements.

Core Meaning of LTL

At its core, LTL shipping is about consolidation and optimization. Carriers collect freight from multiple shippers at various pickup locations, consolidate these shipments at regional terminals, and then transport the combined cargo along shared routes. As the truck travels, freight is sorted at different terminals, with some shipments being unloaded while others continue to their destinations. This freight consolidation model allows carriers to maximize truck capacity and reduce empty miles, passing cost savings on to shippers who only pay for the space they use rather than the entire truck.

Weight and Size Requirements

LTL shipping typically accommodates freight weighing between 150 and 15,000 pounds, though these limits can vary by carrier. Shipments below 150 pounds are usually better suited for parcel carriers, while those exceeding 15,000 pounds or requiring more than six pallets often become more cost-effective as full truckload shipments. Most LTL carriers accept standard pallets measuring 48 inches by 40 inches, with typical dimensional restrictions including maximum lengths of 8-12 feet and heights up to 8 feet.

Comparison to Full Truckload Shipping

Full Truckload (FTL) shipping involves dedicating an entire truck to a single shipper’s cargo, typically for shipments exceeding 15,000 pounds or requiring 10 or more pallets. While LTL offers cost advantages for smaller shipments—often ranging from $300 to $3,000 depending on distance and weight—FTL becomes more economical for larger volumes, with costs typically between $1,500 and $5,000 for a full truck regardless of whether it’s completely filled. The key trade-off is that LTL shipments undergo multiple handling points and stops, extending transit times by several days, while FTL provides direct point-to-point delivery with minimal handling and faster delivery times.

How LTL Shipping Works

Less-than-truckload (LTL) shipping is a freight transportation method where multiple shippers share space on the same truck, each paying only for the portion they use. Unlike full truckload (FTL) shipping where one customer’s freight fills an entire trailer, LTL allows businesses to ship smaller quantities—typically between 150 and 15,000 pounds—without paying for unused truck space. This makes it a cost-effective solution for shipments too large for parcel carriers but too small to justify a dedicated truck. The LTL ecosystem involves several key players: shippers (businesses sending freight), consignees (receiving parties), LTL carriers (transportation companies like Old Dominion, XPO, and FedEx Freight), and often freight brokers or third-party logistics providers (3PLs) who help match shippers with carriers and negotiate rates.

The LTL process involves a sophisticated network of terminals where freight is picked up, consolidated with other shipments heading in the same direction, transported through regional hubs, and ultimately delivered to its final destination. While this multi-stop approach takes longer than direct FTL shipping—usually 2 to 7 business days depending on distance—it significantly reduces costs for businesses shipping moderate quantities. Understanding how LTL carriers orchestrate this complex logistics ballet helps shippers optimize their freight strategy and set realistic delivery expectations.

LTL vs. Other Shipping Methods:

The Hub-and-Spoke Network

LTL carriers operate through a hub-and-spoke network consisting of hundreds of strategically located terminals across the country. In this model, freight doesn’t travel directly from shipper to receiver; instead, it moves through origin terminals (spokes) where shipments are consolidated, then to central hubs where freight is sorted by destination, and finally to destination terminals for local delivery. Major carriers like XPO, Old Dominion, and FedEx Freight maintain networks of 200 to 300 terminals, with large hub facilities processing 5,000 to 10,000 shipments daily. This infrastructure allows carriers to maximize trailer utilization—often achieving 95% capacity—which keeps costs low while maintaining reliable service schedules.

Pickup and Consolidation Process

When you schedule an LTL pickup, the carrier dispatches a truck from the nearest terminal to collect your freight during a specified time window, typically between 8:00 AM and 5:00 PM. Upon arrival at the origin terminal, dock workers unload your shipment, verify its weight and dimensions against the bill of lading, and assign it a unique tracking number. The freight is then sorted on the dock alongside other shipments headed to similar destinations and consolidated onto outbound trailers. This consolidation process usually takes 6 to 12 hours, which is why pickups scheduled after 3:00 PM often don’t depart until the following day—explaining why timing your pickup request matters for meeting delivery deadlines.

Linehaul Transport and Delivery

Linehaul refers to the long-distance transportation of consolidated freight between terminals, typically occurring overnight when highways are less congested. Your shipment may travel through one to three intermediate terminals depending on the distance—for example, freight moving from Los Angeles to New York might pass through hubs in Phoenix, Dallas, and Memphis before reaching its destination terminal. Each time freight arrives at a hub, it’s unloaded, sorted, and reloaded onto trailers heading toward the next terminal in the network, a process that takes 2 to 6 hours per stop. Throughout this journey, carriers use GPS tracking and barcode scanning at each terminal to update shipment status in real-time, allowing both shippers and consignees to monitor progress online or through mobile apps. Once your shipment reaches the destination terminal closest to the consignee, it’s loaded onto a local delivery truck and typically delivered within 24 hours, with most carriers offering delivery windows between 8:00 AM and 5:00 PM (though appointment deliveries can be scheduled for a specific time, usually for an additional fee of $50 to $150).

24-Hour Operations Cycle

LTL carriers run continuous 24-hour operations to keep freight moving efficiently through their networks, maximizing the speed at which shipments progress from origin to destination while minimizing terminal dwell time. This round-the-clock schedule benefits shippers by ensuring faster transit times—freight picked up in the morning can be sorted and loaded onto a linehaul truck the same evening, gaining a full day compared to carriers with limited operating hours. Daytime shifts focus on local pickups and deliveries, with drivers making 15 to 25 stops per route within a 50-mile radius of their terminal. Evening shifts (6:00 PM to 10:00 PM) handle inbound freight processing as trucks return from pickups, with dock workers unloading, sorting, and consolidating shipments for overnight linehaul transport. The overnight shift (10:00 PM to 6:00 AM) is when most long-distance linehaul trucks depart, traveling 400 to 600 miles to the next terminal, arriving in time for early morning unloading and sorting so freight is ready for the day’s delivery routes. Understanding this cycle explains why most carriers have a 3:00 PM cutoff for same-day processing—pickups after this time arrive too late for that evening’s linehaul departure and must wait until the next night.

Typical LTL Operations Schedule:

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Regional or Frequent Deliveries

Businesses that ship to the same regions repeatedly or maintain regular delivery schedules benefit tremendously from LTL services. LTL carriers have established extensive terminal networks in major freight corridors—such as the Chicago-Atlanta lane, California’s I-5 corridor from Los Angeles to Seattle, or the Northeast megalopolis from Boston to Washington D.C.—where daily truck movements create highly efficient consolidation opportunities. Your freight from Dallas to Houston gets combined with other loads headed to Texas Gulf Coast terminals, reducing costs while maintaining reliable delivery windows of 1-2 days for shipments within 500 miles. Carriers like XPO, Old Dominion, and Estes Express operate hundreds of cross-dock facilities strategically positioned along these high-volume routes, meaning your shipments move quickly through their networks with minimal handling and predictable transit times.

This route consolidation is particularly advantageous for manufacturers or distributors serving multiple retail locations within a region, where LTL carriers offer regular service schedules—sometimes daily pickups—that ensure consistent delivery without requiring you to fill an entire truck. For instance, a food distributor shipping from a Phoenix warehouse to six grocery stores across Arizona and New Mexico can use LTL to make all deliveries in one consolidated shipment at 40-50% less than booking separate FTL trucks, while the carrier’s regional hub system ensures each store receives its order within the promised 2-4 day window.

Freight Dimensions and Class

Freight class is the most critical factor in LTL pricing, determined by the National Motor Freight Classification (NMFC) system that assigns classes from 50 to 500 based on density, handling difficulty, stowability, and liability. Density—calculated by dividing weight in pounds by volume in cubic feet—is the primary determinant, with denser freight receiving lower (cheaper) class numbers. Carriers may use dimensional weight (also called volumetric weight) when shipping lightweight but bulky items, calculating what the shipment would weigh if it were denser to prevent empty space from going unbilled. For example, 200 pounds of machinery occupying 4 cubic feet (50 lbs per cubic foot) would be Class 50, while 200 pounds of pillows occupying 40 cubic feet (5 lbs per cubic foot) would be Class 175, costing significantly more to ship despite identical actual weight.

Preparing LTL Shipments

Proper preparation is the cornerstone of successful LTL (Less Than Truckload) shipping. Unlike full truckload shipping where your freight has the entire trailer to itself, LTL shipments share space with cargo from multiple shippers. This means your freight will be handled multiple times, loaded and unloaded at various terminals, and positioned alongside other shipments. Inadequate preparation can lead to damaged goods, delivery delays, reclassification fees that increase your costs by 20-50%, and even shipment refusal by carriers.

The preparation process requires attention to three critical areas: accurate measurements and documentation, proper packaging and labeling, and correct freight classification. Carriers verify dimensions and weight at their terminals, and any discrepancies between what you declared and what they measure will result in additional charges. Taking the time to prepare your shipment correctly not only protects your goods but also ensures you receive accurate quotes and avoid unexpected fees that can significantly impact your shipping budget.

Accurate Measurements and Documentation

Accurate measurements are essential because LTL carriers calculate shipping costs based on both weight and the space your freight occupies. Measure each pallet or shipping unit’s length, width, and height in inches at their widest points, then weigh each piece using a calibrated scale. Calculate the dimensional weight by multiplying length × width × height, dividing by 1,728 to convert to cubic feet, then determining the density (weight in pounds per cubic foot). This density figure directly determines your freight class and shipping cost. Complete your Bill of Lading (BOL) with exact measurements, weights, freight class, and detailed descriptions of contents—this document serves as both a receipt and a contract between you and the carrier, so accuracy is legally important.

Required Documents Checklist:

Proper Packaging and Labeling

Palletization is standard practice for LTL shipping—use 48” × 40” wooden pallets rated for at least 2,500 lbs, ensuring your freight doesn’t overhang the pallet edges and remains stable during transport. Wrap pallets with stretch film (4-6 layers minimum), secure boxes with strapping or banding, and place heavier items on the bottom with lighter, more fragile items on top. Individual boxes should be constructed from corrugated cardboard with a minimum 200 lb test strength, and fragile items require double-boxing with at least 3 inches of cushioning material (bubble wrap, foam, or packing peanuts) on all sides. Apply shipping labels on all four sides of each pallet and ensure they’re protected with clear packing tape or label pouches to prevent damage from weather or handling.

Packaging Best Practices:

Required Labels and Markings:

Choosing the Right Freight Class

Freight class is determined by the National Motor Freight Classification (NMFC) system, which assigns classes from 50 (densest, cheapest) to 500 (least dense, most expensive) based on four factors: density, stowability, handling, and liability. Density—calculated as pounds per cubic foot—is the primary determinant for most shipments. To find your freight class, calculate your shipment’s density and match it to the classification chart: for example, if you’re shipping 1,200 lbs of automotive parts measuring 48” × 40” × 48” (53.33 cubic feet), your density is 22.5 lbs/cu ft, placing you in Class 70. Choosing the wrong class, whether intentionally to save money or accidentally due to miscalculation, will result in reclassification fees, back charges, and potential carrier relationship issues—so always classify accurately and consult your carrier’s NMFC guide if uncertain.

Freight Class Reference Table:

How to Calculate Your Freight Class:

LTL Shipping Services and Options

LTL carriers offer a diverse range of specialized services to accommodate different shipping needs, timelines, and cargo requirements. While standard LTL shipping provides cost-effective transportation with transit times typically ranging from 1-5 business days depending on distance, many shippers require additional services to meet specific operational demands. These value-added services allow businesses to customize their shipping experience, though they generally come with premium pricing that can range from 10% to 50% or more above standard rates.

Understanding the available service options is crucial for optimizing your supply chain strategy and managing customer expectations. Factors such as delivery urgency, destination type, cargo characteristics, and handling requirements all influence which services you’ll need. Selecting the right combination of services helps balance cost with operational efficiency while ensuring your freight arrives safely and on time.

Expedited and Guaranteed Delivery

Expedited LTL services reduce standard transit times by prioritizing your shipment and minimizing terminal handling, typically delivering within 1-2 business days for distances up to 1,000 miles. Guaranteed delivery goes a step further by committing to a specific delivery date and time window, with the carrier refunding shipping charges if they miss the deadline—making it ideal for just-in-time manufacturing, retail restocking, or critical replacement parts. While expedited service typically costs 20-40% more than standard LTL, guaranteed delivery can add 50-100% to your shipping costs, but this premium provides insurance against costly production delays or lost sales that could result from late deliveries.

Liftgate and Residential Services

Liftgate service provides a hydraulic platform on the delivery truck to raise and lower freight to ground level, essential for locations without loading docks or forklifts. This service is commonly needed for small businesses, warehouses without dock facilities, and residential deliveries, with fees typically ranging from $50-150 per shipment and weight limitations around 2,500 lbs due to liftgate capacity constraints. Residential delivery services address the unique challenges of delivering to home addresses, including limited access for large trucks, restricted delivery hours, and the need for appointment scheduling—these shipments often incur additional charges of $75-200 beyond standard rates because drivers must navigate residential streets and may encounter recipients who aren’t equipped to handle commercial freight.

Hazardous Materials Handling

Shipping hazardous materials via LTL requires strict compliance with Department of Transportation (DOT) regulations, proper classification, specialized packaging, and detailed documentation including Safety Data Sheets (SDS). Many common business products qualify as hazmat, including lithium batteries, aerosol sprays, cleaning chemicals, paints, and adhesives, each requiring specific handling based on their hazard class. Hazmat shipments typically incur surcharges of $30-75 per shipment, and not all LTL carriers accept all hazmat classes—some carriers restrict or refuse certain materials entirely, particularly Class 1 explosives or large quantities of flammable liquids, making it essential to verify carrier capabilities before booking.

Temperature-Controlled Shipping

Temperature-controlled LTL shipping maintains specific climate conditions throughout transit, crucial for pharmaceuticals, food products, electronics, and chemicals sensitive to heat or cold. These services range from basic temperature protection (typically 35-80°F) to precise refrigerated transport maintaining 32-36°F for perishables or even frozen conditions at 0-10°F for ice cream and frozen foods. Temperature-controlled services typically add 30-60% to standard LTL rates due to specialized equipment requirements, and availability may be limited in certain lanes or during extreme weather—carriers often provide temperature monitoring logs and may use data loggers to document that proper conditions were maintained throughout the journey, providing crucial documentation for compliance and quality assurance purposes.

LTL Shipping FAQs

Whether you’re new to freight shipping or looking to optimize your logistics strategy, understanding LTL shipping essentials can help you make informed decisions and avoid costly mistakes. This section addresses the most frequently asked questions about Less Than Truckload shipping, from basic definitions to practical tracking tips.

The following FAQs cover everything you need to know to confidently navigate the LTL shipping process, understand pricing structures, and communicate effectively with carriers using industry-standard terminology.

What Does LTL Stand For?

LTL stands for “Less Than Truckload,” a freight shipping method where multiple shippers share space on a single truck, each paying only for the portion they use. Unlike Full Truckload (FTL) shipping where one customer’s freight occupies an entire trailer, LTL allows businesses to ship smaller quantities—typically between 150 and 15,000 pounds—without paying for unused truck space. This makes LTL an economical choice for shipments that are too large for parcel carriers like UPS or FedEx but don’t require a full 53-foot trailer.

How Is LTL Freight Priced?

LTL freight pricing is complex because it considers multiple factors beyond just weight and distance. The primary pricing components include freight class (determined by density, stowability, handling, and liability), shipment weight, distance traveled, and accessorial services like liftgate delivery or inside pickup. Carriers calculate rates using a classification system established by the National Motor Freight Traffic Association (NMFA), which assigns freight classes ranging from 50 (densest, cheapest) to 500 (least dense, most expensive). To get accurate pricing, shippers must provide precise dimensions, weight, commodity description, and origin/destination details.

What Are Common LTL Terms?

Understanding LTL terminology is essential for communicating with carriers, reading shipping documents, and managing your freight efficiently. Industry jargon can be confusing for newcomers, but familiarizing yourself with key terms will help you navigate quotes, bills of lading, and tracking updates with confidence. Below is a glossary of the most frequently used LTL shipping terms you’ll encounter throughout the shipping process.

How Do I Track an LTL Shipment?

Most LTL carriers offer multiple tracking methods, with the PRO number being the most reliable identifier for monitoring your shipment’s progress. You can track shipments through the carrier’s website or mobile app by entering your PRO number, BOL number, or purchase order number. Many carriers also provide proactive notifications via email or text message with status updates at key milestones like pickup confirmation, terminal arrivals, and delivery. If you experience tracking issues or your shipment shows an exception status, contact the carrier’s customer service immediately with your PRO number to resolve any delays or problems before they impact your delivery timeline.

Frequently Asked Questions

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