One of the first decisions shippers face when booking a load is whether to schedule a less-than-truckload—LTL—shipment or a full-truckload, known as FTL. Both play an important role in the movement of goods, but there are distinct differences between the two. Knowing what they are will help you make the best decisions for your freight.
LTL and FTL explained
LTL and FTL loads both use Class 8 trucks, professional drivers, and, most often, 53-foot trailers. The biggest distinction between LTL and FTL shipping modes is right in their names. Less-than-truckload shipments fill part of a trailer, while full-truckload shipments are guaranteed the trailer’s full capacity.
LTL freight is designed for smaller shipments, and freight from multiple shippers is consolidated into one trailer. Sharing the trailer means shippers split transportation costs. It also means that trailers make multiple stops to pick up and deliver freight, which takes longer and gives you less control over your goods. Your freight may also need to be unloaded and re-loaded to accommodate other shipments or to move it to its final stop.
FTL gives you the exclusive use of a trailer, so it is ideal for larger loads. It can also be beneficial even if you don’t fill the trailer. FTL loads typically make fewer, if any, stops on the way to their destination, speeding up delivery. Direct routes result in less handling, which minimizes the risk of damage and creates more predictable pick-up and delivery schedules.
LTL or FTL: Choosing the right transportation option
When choosing the best service for your needs, consider a few key factors.
Shipment size: LTL can be used for loads as little as 100 pounds to as much as 10,000 pounds (though some carriers are willing to go higher). FTL is typically used for loads that are 10,000 pounds or more, but it also works well for smaller loads if speed and handling are top priorities.
Transit time: FTL can shave days off of delivery times, which is essential for time-sensitive loads. LTL delivery dates are often estimates, and delivery windows tend to be on a first-come-first-serve basis. FTL pick-up and delivery schedules can be more predictable, allowing you to plan inventory and labor needs better.
Costs: LTL can be cost-effective since you only pay for the space you need. LTL rates vary based on the geographic location, type of freight, and handling needs and are dictated by the National Motor Freight Traffic Association (NMFTA). FTL can provide value and result in long-term savings, especially if speed is a priority. FTL generally incurs fewer accessorial fees than LTL loads.
Warehouse planning: Managing one FTL shipment can be more efficient than coordinating multiple LTL deliveries. With FTL, there is one bill of lading, one point of contact, and one tracking system, streamlining the back-office requirements.
Handling: FTL freight is loaded once and transported to its endpoint. LTL freight is combined with other shipments, so it could need extra packaging to reduce the risk of damage. Fragile or perishable products may not work well with LTL due to the longer shipping times and increased touch points.
Practical examples of LTL and FTL shipments
Let’s look at some real-life scenarios where there is a clear advantage to LTL or FTL:
- LTL is a clear winner for a small business in Phoenix that needs to ship a few pallets of goods to Los Angeles, especially if delivery schedules are flexible and the freight can withstand additional handling.
- A retailer shipping 40,000 pounds of high-value products needed on a specific date is better served by FTL. So is a manufacturer who needs critical parts to arrive on a specific day and time to keep production lines moving.
- What about a shipper that frequently ships eight or fewer pallets at a time? LTL can give the shipper more flexibility to ship freight as needed rather than waiting to fill a full truckload. But there may also be opportunities to consolidate multiple LTL shipments into a single full truckload, resulting in long-term savings.
Your questions answered
There is a lot to consider when choosing the best shipping mode for your freight. Here are a few more answers to frequently asked questions on FTL vs. LTL shipping modes.
What are the main differences between FTL and LTL?
These really come down to how much trailer space you’re buying and what that means for your freight. With LTL you’re paying for a portion of the trailer, so your shipment is aggregated with other cargo and may be transferred multiple times as it moves through the network. With FTL, you pay for all available space whether you use it or not, allowing the trailer to take a more direct route, increasing efficiency and minimizing risk.
Can I use a mix of LTL and FTL?
Yes. You can use LTL for some loads and FTL for others depending on your needs, which may vary by season, lane, or region. If your freight volumes grow, transitioning from LTL to FTL could reduce overall costs.
How many pallets are considered LTL or FTL?
According to the NMFTA, most companies have an LTL pallet limit of six pallets per shipment. There isn’t a minimum number needed to book a full truckload, but a 53-foot dry van trailer holds about 26-30 pallets in a single layer, depending on their size and weight.
How do LTL and FTL shipping rates compare?
LTL shipping can be more economical than FTL on a per-shipment basis since shippers are share the cost of the full trailer. While FTL rates are typically higher, they may offer better value for large loads, time-sensitive deliveries, or high-value and fragile freight.
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