LTL (Less Than Truckload)
Less Than Truckload (LTL) is a freight shipping method where multiple shippers share space on the same trailer, with each shipper paying for only the portion of the trailer their freight occupies. LTL is the dominant mode for shipments between 150 and 15,000 pounds.
Definition
LTL (Less Than Truckload) is a freight transportation mode where cargo from multiple shippers is consolidated onto a single trailer. Unlike full truckload (FTL) shipping where one shipper books an entire trailer, LTL allows shippers to pay proportionally for the space their freight requires, making it cost-effective for mid-sized shipments.
Why LTL Matters
LTL shipping is foundational to U.S. freight because most commercial shipments don't require a full trailer:
- Cost efficiency: Shippers only pay for the space they use, making mid-sized shipments economically viable
- Network reach: LTL carriers operate extensive terminal networks that can reach nearly any commercial address in the U.S.
- Frequency: Because LTL carriers consolidate freight, they run linehaul routes daily, providing regular service between major markets
How LTL Shipping Works
LTL shipments typically follow a multi-step process through the carrier's network:
1. Pickup & Local Terminal
A local driver picks up the shipment and delivers it to the origin terminal, where it's sorted with other freight heading in the same direction.
2. Linehaul
Freight moves via linehaul trucks (often overnight) to a hub or destination terminal. Large shipments may route direct; smaller ones may consolidate through hubs like Chicago or Dallas.
3. Terminal Handling
At each terminal, freight is unloaded, sorted, and reloaded onto outbound trailers—a process called a freight touch. Each touch adds time and handling risk.
4. Final Delivery
At the destination terminal, freight is loaded onto a local delivery truck and delivered to the consignee.
Common Misconceptions
- "LTL transit times are guaranteed." In reality, published service standards are estimates, not commitments. Transit time variance is inherent to LTL due to the consolidation process.
- "Direct routing is standard." Most LTL shipments make multiple terminal stops. A shipment from Los Angeles to Atlanta may touch 2–4 terminals depending on the carrier's network.
- "All LTL carriers are the same." Carrier networks, service quality, and pricing structures vary significantly. A carrier strong in the Southeast may have poor coverage in the Northwest.
Related Concepts
- LTL Terminal: The facilities where LTL freight is sorted and consolidated
- Freight Touch: Each handling event that occurs during transit
- Linehaul: The long-distance leg between terminals
- Truckload (FTL): The alternative where one shipper books an entire trailer