Are you doing everything possible to ensure efficient FTL vs LTL shipping? To make informed decisions about your freight, you need to understand how these shipping modes affect cost, speed, and risk. Knowing the differences between FTL (Full Truckload) and LTL (Less-than-Truckload) shipping is essential before your products leave the warehouse.

The Differences Between FTL and LTL Shipping

FTL (Full Truckload)
FTL shipping means that one trailer is dedicated to a single customer, shipper, or consignee. These shipments typically move directly from point A to point B without any additional stops.

LTL (Less-than-Truckload)
LTL shipping involves a trailer that carries freight from multiple customers. As a result, LTL shipments make multiple stops to pick up and drop off freight. Additionally, they go through consolidation facilities, where shipments are loaded and unloaded.

Cost Differences 

FTL Pricing
Truckload pricing is straightforward: you pay for a trailer to transport your goods from point A to B. It doesn't matter if you ship a 100-pound box of matches or 40,000 pounds of candles; the cost remains the same as long as your goods aren't overweight, out-of-gauge, or require special handling. Generally, shippers choose FTL when their goods weigh over 10,000 lbs or occupy more than 10 pallets.

LTL Pricing
Shipping costs with LTL depend on what you're shipping. With LTL, you share the trailer with other shippers, so you only pay for the weight and space your shipment occupies. An LTL carrier considers several factors to calculate costs, including:

• Length of Haul: Similar to FTL carriers, LTL carriers factor in how far the shipment travels.
• National Motor Freight Classification (NMFC): This classification determines freight pricing based on density and transport difficulty. The NMFC scale ranges from 50 (dense and durable, like bricks) to 500 (light and fragile, like ping-pong balls). Lower NMFC class numbers usually lead to lower freight charges.

Speed of FTL vs. LTL Shipping

FTL Speed
FTL shipping offers the quickest route between two points. Since a truck carries only one load, it can travel directly from origin to destination without deviations. A driver can typically cover about 450 miles per day, although this average has decreased by nearly 50 miles per day since ELD regulations took effect.

LTL Speed
LTL shipments, akin to carpooling, cannot travel a straight path to their destinations. For instance, a shipment from Boston to Atlanta might stop in Philadelphia and Charlotte, reducing daily travel to about 300 miles. However, LTL shipments can depart more frequently than FTL shipments, allowing you to bring smaller shipments to market more quickly.

Risk Factors

Shipping your product always carries risks of damage, delay, and loss. Many damages occur not during transit but while handling freight at distribution centers and terminals.

With truckload shipping, the carrier only handles the shipment twice: once when loading onto the trailer and once when unloading. In contrast, LTL shipments may stop at several terminals, resulting in multiple handling points.

Consider the Boston to Atlanta example again. An LTL shipment could involve three trips: Boston to Philadelphia, Philadelphia to Charlotte, and finally Charlotte to Atlanta. Each stop increases the risk of damage, misloading, improper routing, or theft.

Conclusion: Choosing Between FTL and LTL Shipping

In the debate between FTL vs LTL shipping, there isn't a one-size-fits-all answer. Most optimized supply chains use both shipping methods based on situational needs.

Before making your choice, consider these questions:

• Am I using the best routing for this shipment?
• Can intelligent routing and consolidations save money?
• Is my freight classified correctly?
• Do I have freight that FTL and LTL carriers want to transport?
• Am I capturing shipment data to reduce costs, increase visibility, and improve efficiency?

By addressing these questions, you can make smarter decisions for your shipping needs.