Less Than Truckload (LTL)
Definition
Less than truckload shipping combines freight from multiple shippers in one trailer, with each paying only for the space and weight they use. It suits shipments of roughly one to ten pallets that are too big for parcel but too small for a full truck.
In Practice
LTL carriers run hub-and-spoke networks: freight is picked up locally, moved through breakbulk terminals, and consolidated with other shippers' cargo heading the same direction. Pricing depends on weight, dimensions, freight class, distance, and accessorial services such as liftgates or residential delivery.
For planners, LTL is the workhorse for replenishing customers and branches with mid-sized orders. The trade-offs are longer and more variable transit than FTL, more handling and therefore more damage risk, and pricing complexity, since misdeclared class or dimensions trigger costly reweigh and reclass adjustments. Accurate dims and weights on the bill of lading are a daily discipline.
An example: a parts supplier shipping four pallets weighing 2,800 pounds from Chicago to Denver books LTL at class 85, paying a fraction of the FTL rate in exchange for three to four transit days.
Related Calculators
Related Terms
Full truckload shipping dedicates an entire trailer to one shipper's freight, moving directly from origin to destination without intermediate handling. It is typically used for shipments large enough to fill or nearly fill a 48- or 53-foot trailer.
Freight ClassFreight class is a standardized rating system used in US less-than-truckload shipping that groups commodities into 18 classes, from 50 to 500, based on density, stowability, handling, and liability. Higher classes cost more to ship per pound.
Freight ConsolidationFreight consolidation combines multiple smaller shipments into one larger load to reduce transportation cost per unit. Consolidated freight is later separated and delivered to individual destinations.
Accessorial ChargesAccessorial charges are fees carriers add for services beyond standard dock-to-dock pickup and delivery, such as liftgate service, residential delivery, inside delivery, redelivery, or driver detention. They appear as line items on top of the base freight rate.