What is Less Than Truckload (LTL)?
Less Than Truckload (LTL) refers to a shipping method used in the transportation industry for freight that does not require the use of an entire truck. Instead of dedicating an entire truck to a single shipment, multiple shipments from different customers are consolidated onto a single truck, allowing for more efficient use of space and resources.
In comparison to truckload carriers who are dedicated to moving an entire shipment from one customer, LTL trucking capacity is split between the loads of multiple customers. Fuller trucks mean more revenue but require more attention to scheduling and routing.
What is Less Than Truckload Shipping?
LTL carriers provide value to customers by not needing to provide an entire truck’s capacity while the carrier can ship fuller loads by combining shipments for multiple customers. In this fashion, both carriers and their customers gain value by having more flexible shipping options.
Less Than Truckload (LTL) shipping is a versatile and economical freight transportation method for businesses with shipments that don’t require an entire truck. Instead of paying for a full truck that might be half-empty, companies can share space on a truck with other shippers, splitting the cost and making the most out of the available space. This approach is perfect for shipping smaller quantities, typically ranging from a single pallet to around six pallets. LTL shipping offers a balanced solution, providing the benefits of lower costs and reduced environmental impact by consolidating multiple shipments. Additionally, LTL carriers offer services like freight tracking, standardized transit schedules, and often, liftgate and residential delivery options.
Truckload vs Less Than Truckload
Truckload (TL) and Less Than Truckload (LTL) are two primary methods of shipping freight:
- Truckload (TL): In TL shipping, an entire truck is dedicated to a single shipment, typically from a single customer. This method is preferred for larger shipments that require the entire space of a truck and demand faster transit times.
- Less Than Truckload (LTL): LTL shipping consolidates multiple smaller shipments from different customers onto a single truck. This approach is suitable for smaller shipments that do not fill an entire truck and offers cost savings by sharing transportation costs among multiple shippers.
The Less than Truckload Market
The Less Than Truckload (LTL) market encompasses a network of carriers, freight brokers, and shippers involved in the transportation of smaller shipments. It plays a crucial role in the logistics industry by providing businesses with a cost-effective solution for shipping goods that do not require full truckload capacity. The LTL market continues to evolve with advancements in technology and logistics optimization, offering greater efficiency and flexibility.
Less Than Truckload carriers deliver flexibility to customer shipping requirements by providing a more attractive financial alternative when compared to truckload shipping. Smaller shipments can be handled more effectively by LTL carriers. While truckload carriers are more efficient at delivering large quantities of goods to a single location (like goods being delivered to regional distribution centers), it is quite common to require smaller quantity shipments from distribution centers to end users or retail stores.
