The freight term "LTL" stands for Less Than Truckload

A standard 48 foot trailer will typically have space to haul 24 standards sized pallets of freight, up to roughly 44,000 lbs. Shipments containing significantly less freight that those quantities, will generally fall under the LTL category. 

Trucking companies will typically discount the shipping rate based on the amount of space used in the truck, as they can then accept more freight from other sources to fill up the truck, mostly being delivered in the same vicinity or on route to final destination. Carrier will generally make more profit by filling up a given truck with a mix of LTL freight, as opposed to a full truck load.

Operating a trucking company that offers the capacity to move LTL shipments, will most often necessitate the use of a warehouse. Just as the trucks picking up the freight need to optimize their pick up routes, the trucks delivering to final destinations will need to use optimized routes as well. This is where unloading and reloading at a warehouse becomes vital.

Of course, there are exceptions to the rule. For example, a given shipper may not want any other freight in the truck, in which case the LTL shipment would be charged as a full load. 

More commonly, a truck may have a smaller number of shipments on it, in which case they can pick them up on route. This is more common with carriers picking up backhauls, in which case they’ll often pick up and deliver multiple shipments on route to their home base, thereby maximizing the profit on the return trip by avoiding to drive empty miles (deadheading).

Lastly, the closely related term LCL, refers to same concept, except using containers instead of truck trailers.

More Potential Uses of LTL

Less-than-truckload services include freight occupying one to six pallets and measuring less than 14 linear feet. These freight shipments are consolidated with other small parcels to create a full container, and each shipper only pays for the space they use rather than an entire trailer. It's a cost-effective service for small businesses that need to conserve or large companies that need to meet a deadline and budget when accommodating a small, specified delivery. 

When Is LTL the Best Option?

LTL is the best option for companies that don't require a full container to ship their goods. 

• Affordable: Shippers who fill six pallets or less aren't required to pay for a full container with unused space.
• Flexible: Small businesses can remain competitive in their markets thanks to LTL's additional services, such as pickup and delivery, expedited shipping and special handling.
• Environmentally friendly: LTLs require fewer delivery trucks by combining multiple shipments in one load.
• User-friendly: Most LTLs offer user-friendly transportation management systems that make the shipping process easier to navigate and more efficient.
• Secure: Since LTL shipments are arranged on crates or pallets, they provide a safer method of transportation than small parcel shipping.

LTL Shipping and the Construction Industry

The logistics of shipping goods within the construction industry has a major impact on individual project's scheduling, security and profitability. LTL shipping to construction sites can help in a number of ways:

• Scheduling: LTL shipping meets your schedules and deadlines by combining the cargo from multiple customers into one shipment. 
• Security: LTL shipping also provides just-in-time shipping to help ensure you only receive what you need, eliminating theft.
• Profitability: LTL reduces overspending on large shipments, production costs associated with delayed shipments, and theft.

About FreightFinder

Founded in 1998, FreightFinder is the internet's original free online load board. We help keep freight moving by matching it with owner-operators, brokers and trucking companies. Our free service allows shippers and brokers to post the freight they need transported, including necessary equipment and other details, establishing the rate and payment guidelines before the freight carrier accepts the load.