What Does LTL Mean?

In this quick guide, we’ll explain what LTL (Less Than Truckload) shipping means and how it can help you save money on transportation. If you’re shipping smaller loads or don’t need a full truck, LTL allows you to share space with others, making it a cost-effective solution. We’ll cover how it works, its benefits, and how to prepare your shipment, so you can make informed decisions for your shipping needs.

What is LTL Shipping? Definition and Origin

LTL (Less Than Truckload) shipping refers to a method of transporting goods where the cargo doesn't fill up an entire truck. Instead of a single company filling the whole truck, several different shipments from various customers are combined to share the space and cost. This is ideal for businesses or individuals who don’t have enough goods to warrant a full truckload.

The concept of LTL shipping dates back to the early 20th century when freight companies began to realize that small shipments could be combined, which would allow them to offer more affordable shipping options. This was especially beneficial for small businesses or individuals who wanted to send smaller amounts of goods without paying for an entire truck.

In LTL shipping, your cargo shares space with other shipments, but it’s still handled carefully and delivered to the appropriate destination. The cost of shipping is determined by the weight, size, and distance of your cargo. Since you’re not paying for the entire truck, LTL shipping is a cost-effective choice for those who need to ship smaller quantities.

For example, if you’re purchasing a car from an online auction in the U.S. but only need to transport one vehicle, LTL shipping could be the perfect solution. Instead of paying for the full truck space, your car will share the space with others, allowing you to save money while still getting your vehicle to its destination.

How Does LTL Shipping Work? Stages: Pickup, Sorting, Delivery

LTL (Less Than Truckload) shipping follows a series of stages that ensure your goods are transported safely and efficiently, even if they’re not filling up an entire truck. Let’s break down how it works:

1. Pickup

The first stage in LTL shipping is the pickup of your cargo. When you arrange for LTL shipping, the freight company will send a truck to your location to collect the goods. This could be anything from a single car to multiple smaller items. If you're shipping a vehicle, for instance, the pickup stage involves getting the car from its original location, like an auto auction or a dealership, and bringing it to a distribution center.

At this point, the cargo is already on its way to be combined with other shipments that are heading in the same general direction. The pickup truck might stop at multiple locations to gather various goods before heading to the next stage.

2. Sorting

Once all the pickups are complete, the next step is sorting. The freight moves to a central hub or distribution center where it’s sorted according to its final destination. This is where your car (or any other item) will be grouped with other cargo that’s headed toward similar destinations. In LTL shipping, goods from various customers are consolidated and organized based on factors like delivery location, size, and priority.

Sorting is a crucial step in ensuring the most efficient delivery route. It helps minimize delays and ensures that each piece of cargo is properly handled and sent in the right direction. For example, your car might be sorted into a group of other vehicles or cargo that will travel to the same region or port for the next step.

3. Delivery

After sorting, the next stage is delivery. The cargo is loaded onto another truck that will take it closer to its final destination. Along the way, the truck might stop at additional hubs to deliver or pick up other goods. However, when it reaches the local delivery center near its destination, your goods are ready to be delivered to their final stop.

If you're shipping a vehicle from the U.S. to another country, like for example, to a port where it will be exported, LTL shipping allows you to share the cost of transportation with other shipments, making it a more affordable option. Once your car reaches the local port or destination, the final delivery is made, and it’s ready for unloading.

Why LTL Shipping Works for Smaller Loads

Because LTL shipping is based on sharing truck space, it's a cost-effective method for shipping smaller loads that wouldn't fill an entire truck. Whether you’re shipping a car, a few boxes, or even parts for a larger vehicle, LTL allows you to share the cost and reduce expenses. It’s an ideal solution for those looking to save money on shipping without compromising on the safety or timeliness of their delivery.

Who Should Use LTL Freight? Small Businesses and Partial Shipments

LTL (Less Than Truckload) freight is designed for anyone who needs to ship smaller amounts of goods without paying for an entire truck. This shipping method is especially useful for small businesses, individuals, or even large companies that don’t have enough items to fill a full truckload. Let’s take a closer look at who can benefit the most from LTL freight:

1. Small Businesses

Small businesses often don’t have the volume to justify paying for a full truckload. LTL shipping provides them with an affordable way to send goods without breaking the budget. Whether it’s raw materials, products for resale, or even inventory for a store, small businesses can use LTL to transport items in smaller, more manageable quantities.

For example, let’s say a small online business sells custom auto parts, and they need to restock their inventory. Instead of renting a whole truck to move a few boxes of parts, they can use LTL freight to share a truck with other shipments, keeping costs low. This flexibility is a huge advantage for businesses trying to minimize overhead costs while still ensuring that products reach their destination safely and on time.

2. Partial Shipments

If you’re sending partial shipments — meaning not enough goods to fill an entire truck — LTL is a perfect solution. This can apply to all sorts of scenarios, whether you’re shipping a few items across the country or sending a single vehicle. LTL allows you to ship partial loads and still get reliable service without paying for unused truck space.

For instance, if you’re buying a car from an auction in the U.S. and need it delivered overseas, LTL shipping will allow you to share the truck space with other shipments. This helps you save on shipping costs compared to paying for an entire truck, which would be unnecessary if your shipment is only one vehicle.

3. Individuals with Limited Budgets

If you don’t have the funds for an expensive shipping option, LTL freight is often the best choice. Many people shipping goods or vehicles prefer LTL because it’s more affordable than paying for a full truckload. It’s an especially popular option for people who need to ship things like cars, motorcycles, or household items but don’t have the quantity of goods that would fill a whole truck.

For example, let’s say you're looking to ship a car from the U.S. to your home country. By opting for LTL shipping, you don’t have to pay for an entire truck. Instead, you’re sharing the space with other shipments, which makes it much cheaper. This is a great option for people with a limited budget who still need reliable and safe transportation for their goods.

4. Businesses with Seasonal or Irregular Shipments

LTL is also a great option for businesses that have seasonal shipments or shipments that are irregular in size. For example, a business might need to ship extra goods at certain times of the year, like during a sale or product launch. Instead of committing to a full truckload that they won’t always need, they can rely on LTL to adjust to the fluctuating demands of their business.

5. Companies Looking to Ship Diverse Loads

LTL is ideal for companies or individuals that need to ship a variety of different types of goods. Because several different shipments are combined in one truck, LTL can accommodate various cargo types, such as auto parts, electronics, furniture, and even vehicles. This flexibility is especially useful for those with diverse shipping needs, as it allows them to get all their goods to the right places without any hassle.

Advantages of LTL Freight: Cost-Efficiency and Flexibility

LTL (Less Than Truckload) freight offers a range of benefits, especially for businesses or individuals who don’t have enough goods to fill a full truck. Two of the most significant advantages of using LTL shipping are its cost-efficiency and flexibility. Let’s explore these benefits in more detail:

1. Cost-Efficiency

One of the biggest draws of LTL freight is the significant cost savings it offers. Since LTL shipments combine multiple smaller shipments from different customers, the cost of transportation is shared, which makes it much more affordable than booking a full truckload.

For businesses and individuals with a limited budget, this is a game-changer. Instead of paying for an entire truck, which would be unnecessary if you only need to ship a few items or a single vehicle, you pay only for the space your shipment occupies. This translates into lower shipping costs, which is particularly beneficial for those who are trying to save money while still ensuring reliable delivery.

For example, imagine you're buying a car from an auction in the U.S. to export it to your country. If you were to book a full truck, you’d end up paying for space that you don’t need. With LTL shipping, you only pay for the truck space your car takes up, which helps you save significantly on transport costs.

LTL also allows you to avoid the extra expenses associated with higher shipping services like expedited or full truckload options. This makes it a perfect choice for those who need to balance cost with quality service.

2. Flexibility

LTL shipping offers great flexibility, making it an excellent choice for various shipping needs. Whether you need to ship just one item or a few, LTL allows you to ship smaller loads without being restricted by the amount of cargo required for a full truckload.

The flexibility of LTL shipping also extends to timing. Because LTL freight companies consolidate shipments from different customers, there’s often more room for flexibility in scheduling. Trucks might take different routes depending on how shipments are sorted, which allows for more adaptable delivery windows. While LTL shipments may take a little longer than full truckload deliveries, the extra time is often compensated by the savings in cost.

Additionally, LTL is ideal for businesses that have fluctuating shipping needs. For example, during busy seasons or when unexpected shipments arise, businesses can easily book LTL freight as needed, without the commitment of a full truckload. This makes it easier to scale up or down depending on your current inventory and shipping requirements.

3. Environmental Benefits

Another advantage of LTL shipping is its positive impact on the environment. Since multiple shipments are consolidated into a single truck, fewer trucks are needed on the road, reducing the overall carbon footprint. This eco-friendly aspect of LTL shipping can appeal to businesses that want to lower their environmental impact and contribute to more sustainable practices.

4. Reliable Service

Despite being more cost-effective, LTL freight doesn’t compromise on reliability. Freight companies specializing in LTL shipments are experienced in handling a wide variety of goods and ensuring they arrive safely and on time. With proper planning and consolidation, LTL shipments can be just as reliable as full truckloads, even though they share space with other shipments. This makes LTL a great choice for businesses that need to deliver goods regularly but in smaller amounts.

5. Access to Specialized Services

LTL freight carriers often offer additional services like tracking, insurance, and door-to-door delivery. This means that even though you’re using a more affordable shipping method, you still have access to high-quality services that ensure your shipment is safe and easy to track. Some carriers also offer options like temperature control or expedited delivery, so you can tailor the service to your specific needs.

How to Calculate LTL Shipping Costs

Calculating the cost of LTL (Less Than Truckload) shipping can seem a bit complex, but understanding the factors involved can help you get an accurate estimate and ensure you’re getting the best deal for your shipment. LTL shipping costs depend on several key factors, including the weight, size, distance, and type of cargo you’re shipping. Let’s break down how to calculate these costs and what you should consider when planning your LTL shipment.

1. Weight of the Shipment

One of the primary factors in determining the cost of LTL shipping is the weight of the cargo. The heavier the load, the more expensive the shipment will be. LTL carriers typically charge by the pound, so it’s important to get an accurate weight for your shipment.

For example, if you’re shipping a car, the weight will be a significant factor in determining the price. Carriers often have different weight brackets, and as your shipment moves up in weight, the cost per pound might decrease slightly, but the overall price will still be higher.

2. Dimensions of the Shipment

In addition to weight, the size of your shipment (length, width, and height) plays a crucial role in calculating the cost. Freight carriers often use volume-based pricing, especially for larger items that may not be as heavy but take up more space in the truck.

For instance, if you’re shipping a bulky item like a large auto part or equipment, even though it may not weigh much, its size might require more space in the truck, which can increase the shipping cost. This is known as dimensional weight pricing.

3. Distance of the Shipment

The distance between the pickup and delivery locations is another important factor in calculating LTL shipping costs. The farther the distance, the higher the shipping fee. LTL freight carriers base their pricing on mileage, so the longer the journey, the more it will cost to transport your goods.

For example, shipping a car from California to Florida will generally cost more than shipping the same car within California, even though the vehicle may be the same size and weight. Distance-based pricing helps carriers cover fuel and labor costs associated with longer trips.

4. Class of the Freight

Freight classification is another factor in determining the cost of LTL shipments. The National Motor Freight Classification (NMFC) assigns each type of cargo to a specific freight class, which is based on factors like density, ease of handling, value, and liability.

Items that are easier to handle, less likely to be damaged, and take up less space tend to fall under a lower freight class, making them cheaper to ship. For example, a small auto part would likely fall into a lower freight class than a large vehicle, which may fall into a higher class due to its size, weight, and potential for damage.

5. Fuel Surcharges

Fuel prices can fluctuate, and this is something that LTL carriers account for in their pricing. Many LTL carriers add fuel surcharges to the total cost of the shipment. This surcharge is typically a percentage of the total shipping cost and can change based on current fuel prices.

Even though you might get a base rate for your LTL shipment, be prepared for additional charges if fuel prices are high. To get an accurate estimate, ask the carrier about the current fuel surcharge rates before finalizing your shipment.

6. Additional Services

LTL shipments may include additional services that can affect the total cost. Some of these services may include:

• Liftgate Service: If your pickup or delivery location doesn’t have a loading dock, you might need a liftgate to load or unload the shipment.
• Residential Delivery: If the shipment is being delivered to a residential address, there may be an extra fee for this service.
• Inside Delivery: If the carrier needs to move the goods beyond the curb or into a specific room inside a building, additional charges might apply.
• Expedited Shipping: If you need your shipment to arrive faster, expedited services will add to the cost.

Make sure to clarify any additional services you might need and factor those into your cost calculation.

7. Discounts and Negotiation

If you’re a regular customer or you’re shipping large volumes of goods, you might be eligible for discounts from LTL carriers. Many companies offer volume-based pricing or contract rates that can lower the overall cost.

It’s also worth asking the carrier if they have any promotions or seasonal discounts that might apply to your shipment. Additionally, negotiating the rate with the carrier might help you save money, especially if you’re shipping on a regular basis.

How to Calculate the Total Cost:

To get a rough estimate of your LTL shipping cost, you can follow these steps:

1. Measure the weight and dimensions of your shipment.
2. Determine the freight class.
3. Calculate the distance between the pickup and delivery points.
4. Account for any additional services like liftgate or residential delivery.
5. Inquire about any applicable fuel surcharges.

Once you have these details, you can request a quote from the LTL carrier, which will give you a more precise price. Many LTL carriers have online calculators that let you input these details to get an instant estimate.

LTL vs. FTL: Key Differences

When choosing between LTL (Less Than Truckload) and FTL (Full Truckload) shipping, it’s important to understand the key differences between these two options. Both have their advantages depending on the type of shipment, but knowing when and why to use one over the other can help you save money and ensure your goods are transported in the most efficient way possible. Let’s break down the key differences between LTL and FTL.

1. Shipment Size and Capacity

• LTL (Less Than Truckload): LTL is designed for shipments that don’t require a full truck. If you’re sending a small quantity of goods or a single item that doesn’t take up much space, LTL is the right choice. Multiple shipments from different customers are combined into one truck, sharing the cost and space. This makes LTL ideal for small businesses, individuals, or anyone with partial loads.

  Example: You’re buying a single vehicle from a U.S. auto auction. Instead of paying for an entire truck to move the car, LTL allows you to share truck space with other shipments, making it much more affordable.

• FTL (Full Truckload): FTL, on the other hand, is used for larger shipments that require the entire truck. Whether it’s a full pallet of goods, a large piece of equipment, or several vehicles, FTL is best for shipments that can fill the entire capacity of the truck. When you choose FTL, your goods are the only ones on the truck, which means there’s no sharing of space with other customers.

  Example: You’re shipping a fleet of cars or multiple vehicles from a dealership or auction, and you need an entire truck to transport them. FTL is the best choice for this larger shipment.

2. Cost

• LTL: LTL shipping is more cost-effective for smaller shipments because you only pay for the space your goods take up in the truck. Since your shipment shares space with others, the overall cost is divided, making it an affordable option for those with limited cargo. However, because there are multiple stops and additional handling involved, LTL shipments can sometimes be more expensive per unit of weight than FTL for larger shipments.

  Example: If you’re shipping one car, LTL shipping allows you to avoid paying for unused truck space, so you only pay for the cost of transporting your car along with other shipments.

• FTL: While FTL shipping is more expensive than LTL, it may be a better option if you have enough cargo to fill the truck. With FTL, you pay for the entire truck regardless of whether it’s full or not, but if you have enough items to fill the truck, the price per unit becomes more competitive. FTL also offers faster delivery since there’s no need for the truck to make multiple stops along the way.

  Example: If you have a full load of goods or several vehicles to transport, FTL could actually save you money in the long run by allowing you to take full advantage of the truck’s capacity.

3. Transit Time

• LTL: Since LTL shipments involve multiple stops, sorting, and consolidation at various hubs, they tend to take longer to reach their destination. The truck will often make several pickups and deliveries along the way before arriving at your final destination. This can lead to longer delivery times.

  Example: If you’re shipping a car via LTL, it might take a bit longer to arrive because the truck might be delivering goods to other destinations before reaching yours.

• FTL: FTL shipments are typically faster since there are no other stops along the way. The truck is dedicated to your goods, meaning it will travel directly to the destination without delays from other pickups or drop-offs. This makes FTL a good option if time is a priority.

  Example: If you need your car delivered quickly, FTL would be a better option because it offers a more direct route and faster delivery times.

4. Handling and Safety

• LTL: Because LTL shipments are handled multiple times, they are generally exposed to more risk. The truck might stop at various hubs, and the cargo may be unloaded and reloaded at different points. This increases the chances of damage, especially for fragile or valuable items. However, most LTL carriers take precautions to handle goods carefully, and insurance options are usually available.

  Example: Shipping a car via LTL means it will likely be handled several times during the journey, which can increase the risk of scratches or minor damage. However, the savings in shipping costs might outweigh this concern, especially if the car isn’t particularly fragile.

• FTL: With FTL, your goods are the only cargo on the truck, which means there’s less handling involved. This can reduce the risk of damage, especially for sensitive or valuable items. FTL is generally considered safer for high-value or fragile shipments because they aren’t exposed to as much handling or movement.

  Example: If you're shipping a high-end luxury vehicle, FTL is a better option because there’s less handling, meaning less chance of damage.

5. Flexibility

• LTL: LTL offers flexibility for those who don’t need to ship a full truckload. You can ship small amounts of goods without having to pay for unused truck space. It’s perfect for those with smaller budgets or irregular shipping needs.

  Example: If you’re running a small business and only need to send a few boxes or one vehicle, LTL gives you the flexibility to ship only what you need without committing to an entire truck.

• FTL: FTL is less flexible in terms of cargo size because you’re paying for the entire truck, even if you don’t fill it up. However, it’s a good choice for businesses or individuals who regularly ship large quantities of goods. FTL also offers the advantage of customized routes and delivery times, as the truck is dedicated to your shipment.

  Example: A large car dealership regularly ships several cars at once, so FTL would be the most efficient and flexible option for them.

6. Availability

• LTL: LTL is widely available and can be a great solution for both regular and one-time shipments. It’s particularly popular for smaller businesses or individuals with occasional shipping needs.

• FTL: While FTL is also widely available, it’s often best suited for larger shipments, and it may not be necessary if you don’t have enough goods to fill the truck.

How to Prepare Shipments for LTL Freight

Preparing your shipments properly for LTL (Less Than Truckload) freight is essential to ensure a smooth and cost-effective transportation process. By following the right steps, you can minimize the risk of delays, damages, and extra charges. Proper preparation not only helps the shipping process go smoothly but can also save you money. Let’s walk through the necessary steps to prepare your goods for LTL shipping.

1. Accurately Measure and Weigh Your Shipment

Before you schedule your LTL shipment, the first thing you need to do is accurately measure and weigh your items. This is crucial because LTL carriers charge based on the size and weight of your cargo.

• Measure Dimensions: Measure the length, width, and height of each item or package you’re shipping. Use a measuring tape to get accurate dimensions. If you’re shipping multiple items, measure each one individually.

• Weigh Your Shipment: Weigh your items using a reliable scale. If your shipment consists of multiple boxes, be sure to weigh each one individually, then add up the total weight. Keep in mind that LTL shipments are usually priced based on their actual weight, but sometimes, the dimensional weight (calculated based on size) may be used instead if the item is large but light.

2. Properly Package Your Goods

Proper packaging is key to protecting your goods during transit. Even though LTL shipments are often handled less frequently than standard parcels, the fact that the truck makes multiple stops increases the risk of damage if the items aren’t well packaged.

• Use Strong, Durable Packaging: Make sure to use sturdy materials like heavy-duty boxes or wooden crates for fragile or valuable items. If your items are particularly delicate, consider wrapping them in bubble wrap or using foam padding for extra protection.

• Palletizing: If you’re shipping large or heavy items, it’s usually a good idea to place them on pallets. This makes it easier for the carrier to move and stack your items safely. Pallets help reduce the chances of your goods getting damaged and make the shipping process more efficient.

• Seal and Label Packages: Make sure to securely seal your packages with high-quality tape. Label all packages clearly, including the recipient's name, address, and contact information. It’s also important to label fragile items or indicate the top of the package to avoid mishandling.

3. Determine the Freight Class

Freight classification is an important step in preparing your shipment for LTL freight. Freight classification helps the carrier determine how to handle your shipment and sets the price based on its density, handling, stowability, and liability.

• Find Your Freight Class: The National Motor Freight Classification (NMFC) system assigns each type of cargo to a specific freight class, ranging from 50 (for very dense, easy-to-handle items) to 500 (for very light, fragile, or hazardous goods). You can use an online tool or contact your carrier for assistance in determining the correct freight class.

• Why It Matters: Incorrect classification can lead to incorrect pricing or even delays in shipping. If you’re unsure about the classification of your shipment, ask your carrier for guidance. Some carriers also offer freight class calculators to help you get it right.

4. Choose the Right Shipping Service

When preparing your shipment for LTL freight, you need to choose the appropriate level of service based on your needs.

• Standard LTL: If you’re looking for the most affordable option and can handle longer transit times, the standard LTL service will likely be your best choice. This service is typically slower and involves multiple stops along the way.

• Expedited LTL: If you need your shipment to arrive faster, consider an expedited LTL service. This option speeds up the delivery process but will come at a higher cost.

• Accessorial Services: Depending on your needs, you may require accessorial services, such as liftgate service (if you need help loading or unloading your shipment), inside delivery, or residential delivery. Be sure to discuss these options with your carrier when booking your shipment.

5. Prepare the Pickup Location

The pickup location must be prepared for LTL freight to ensure the process is efficient and safe. The carrier will need access to your shipment, and the area should be clear for loading.

• Accessibility: Ensure that the pickup location is accessible for a large truck. If you’re shipping from a home or small business without a loading dock, let the carrier know in advance. If you need a liftgate service to load the goods onto the truck, make sure the carrier is aware.

• Clear Pathways: Ensure that the area around the shipment is clear of obstacles, so the driver can easily load the goods. If your items are heavy or large, make sure there’s enough space to maneuver them onto the truck.

6. Schedule Pickup and Delivery

Once your shipment is packaged, labeled, and ready for transport, the next step is scheduling the pickup. You can contact your LTL carrier to arrange a suitable time for them to pick up the goods.

• Provide Accurate Information: Be sure to provide the carrier with accurate details, such as the shipment’s dimensions, weight, and freight class. Also, provide the address for both pickup and delivery locations.

• Pick the Best Time: Schedule your pickup for a time that allows you to be ready for the carrier and ensures that your shipment can be moved without delays. If you need expedited shipping or specific delivery instructions, make sure to communicate those as well.

7. Track Your Shipment

After your LTL shipment has been picked up, it’s important to track its progress. Many carriers offer tracking services that allow you to monitor the status of your shipment as it moves through various hubs and stages of delivery.

• Online Tracking: You can use the carrier’s online tracking system to get real-time updates on your shipment’s location and estimated delivery time.

• Communicate with Your Carrier: If there are any issues or delays during transit, it’s a good idea to stay in touch with your carrier for updates and troubleshooting.

In conclusion, LTL shipping is an affordable and efficient way to transport smaller loads without paying for an entire truck. By understanding how it works and preparing your shipments correctly, you can save on transportation costs while ensuring timely delivery. Ready to ship your goods with ease? Sign up at ykfreight.com today to get started with reliable and cost-effective LTL freight solutions tailored to your needs.