Definition · LTL Shipping

What is LTL shipping?

How less-than-truckload freight moves through the carrier network, what drives your cost, and when LTL is the right mode for the shipment in front of you.

The Short Answer

LTL shipping moves freight that is too big for parcel but too small to fill a trailer, by sharing trailer space with other shippers' freight.

LTL stands for less-than-truckload. A typical LTL shipment runs from about 150 to 15,000 pounds, or one to six pallets. Instead of paying for a full 53-foot trailer, you pay only for the space and weight your freight occupies. Several shippers' freight rides on the same trailer, which keeps the cost down for shipments that do not need a dedicated truck.

How It Works

A hub-and-spoke terminal network.

Unlike a full truckload that drives straight from origin to destination, an LTL shipment moves through a network of carrier terminals. Your freight is picked up, consolidated with other shipments headed the same direction, hauled between terminals, then broken down and delivered. Here is the typical journey:

  • Pickup. A local driver collects your palletized freight and brings it to the origin terminal.
  • Consolidation. At the terminal, your freight is combined with other LTL shipments routed toward the same region.
  • Linehaul. The consolidated trailer runs between terminals, sometimes through one or more hubs.
  • Deconsolidation. At the destination terminal, freight is sorted for final delivery.
  • Delivery. A local driver completes the last-mile delivery to the consignee.

Because freight is handled several times across this network, accurate packaging, labeling, and classification matter more in LTL than in any other mode. Each handoff is a chance for damage, remeasurement, or a reclass.

LTL vs FTL vs Parcel

Picking the right mode.

Mode Typical Size Best For
ParcelUnder 150 lbs, small boxesSmall, lightweight packages shipped via carriers like UPS and FedEx
LTL150 to 15,000 lbs, 1 to 6 palletsPalletized freight that does not fill a trailer and is not time-critical
FTL (Full Truckload)10,000+ lbs, 10+ pallets, or a full trailerLarge, dense, time-sensitive, or fragile freight that warrants a dedicated truck

The line between LTL and full truckload is not just weight. Once a shipment passes roughly 12 to 15 pallets, full truckload is often cheaper and involves less handling, even if the freight is light.

What Drives Your Cost

Six factors set your LTL rate.

  • Weight. Heavier shipments cost more in absolute terms, but more weight in less space lowers your cost per pound.
  • Freight class. Carriers assign every shipment an NMFC freight class from 50 to 500, driven largely by density. Lower class means a lower rate. Run your numbers in the freight density calculator before you tender.
  • Distance and lane. Longer hauls and lanes with less carrier density cost more.
  • Accessorials. Liftgate, residential delivery, inside delivery, detention, and reclass fees add up fast. See the LTL accessorial guide.
  • Fuel surcharge. A variable percentage tied to diesel prices, applied on top of the base rate.
  • Minimums and FAK. Every carrier has a minimum charge, and FAK (Freight All Kinds) agreements can blend multiple classes into one negotiated rate.

When LTL Is the Right Call

Use LTL when the shipment fits.

LTL is the right mode when your freight is palletized, runs between roughly 150 and 15,000 pounds, and is not so time-critical that the extra handling and terminal transit time become a problem. It is cost-efficient precisely because you share the trailer.

Move to full truckload when the shipment is large or dense enough to justify a dedicated trailer, when transit time is tight, or when the freight is fragile and you want to minimize handling. Drop to parcel when individual pieces are small and light enough to ship without a pallet.

FAQ

LTL shipping, answered.

What weight range counts as LTL?

Roughly 150 to 15,000 pounds, or one to six pallets. Below 150 pounds, parcel is usually cheaper. Above about 12 to 15 pallets, full truckload often wins.

How is LTL freight priced?

On weight, freight class (driven by density), distance, accessorials, and a fuel surcharge, against a carrier minimum. Density is the biggest lever you control, so calculate it before tendering.

Why does LTL freight get handled so many times?

LTL moves through a hub-and-spoke terminal network. Your freight is consolidated with other shipments at the origin terminal, hauled between terminals, then deconsolidated for delivery. Each handoff is why packaging and accurate labeling matter so much.

What is a BOL in LTL shipping?

The Bill of Lading is the legal document and shipping instruction for the move. It lists the shipper, consignee, piece count, weight, dimensions, and freight class. Accurate dimensions and class on the BOL prevent reweighs and reclass charges.

Why did my LTL invoice come in higher than the quote?

Almost always a reclass or an accessorial. If the carrier dim-scans your freight and the density does not match the BOL, they reclassify and rebill. Unplanned accessorials like liftgate or detention show up the same way. See the accessorial guide.

How do I lower my LTL shipping costs?

Increase density to drop your class, classify accurately to avoid reclass fees, consolidate orders where you can, and negotiate FAK pricing if you ship multiple classes. A managed transportation partner does this across your whole network, not one shipment at a time.

Next

Want LTL handled right across your whole network?

Book a 30-minute call. We will look at a sample of your recent LTL shipments and show you where class, consolidation, and accessorials are costing you more than they should.