LTL

Less Than Truckload (LTL) shipping is designed for freight that is too large for parcel carriers (like UPS or FedEx) but doesn't require an entire trailer. Typical LTL shipments range from 150 to 15,000 pounds or 1-10 pallets. Multiple shippers' freight shares space on the same trailer, with each shipper paying only for the portion of trailer space their shipment occupies. This consolidation model makes LTL significantly more affordable than FTL for smaller shipments.

LTL pricing is based on four primary factors: weight, distance, freight class (determined by the National Motor Freight Classification system based on density, stowability, handling, and liability), and shipment dimensions. Additional charges may apply for residential delivery, liftgate service, inside delivery, limited access locations, hazardous materials, and notification/appointment requirements. Understanding freight classification is essential — misclassifying freight can result in reclassification charges and significant cost increases.

Unlike FTL's direct point-to-point model, LTL freight moves through a hub-and-spoke network. Freight is picked up from the shipper by a local driver, brought to a service center (terminal), sorted and consolidated with other freight going in the same direction, line-hauled to a destination terminal, sorted again, and delivered by a local driver. This network model means LTL transit times are longer than FTL and freight is handled multiple times, increasing the risk of damage.

Major LTL carriers include FedEx Freight, XPO Logistics, Old Dominion, Saia, Estes Express, and ABF Freight. Each carrier maintains an extensive terminal network and publishes tariffs (rate schedules). In practice, most shippers negotiate discounts off the published tariff, with discounts ranging from 50% to over 85% depending on volume, lane density, and freight characteristics.