Businesses often decide between LTL (less than truckload) and FTL (full truckload) shipping, in shipping freight. Those are two of the most common methods of shipping merchandise. Each has its advantages depending on shipment size, timeliness, and expense. It is important to know the principal distinctions between FTL and LTL shipping to apply for economical, efficient, and timely services. In this guide, we present the pros and cons of both alternatives and help you choose the most appropriate decision for your shipping needs. Let’s dive into the comparison and discover the right solution for your next shipment.
Table of Contents
LTL vs FTL Transport: Key Differences
Cost Comparison: LTL vs FTL Shipping
How Do LTL and FTL Shipping Impact Delivery Times
LTL vs FTL: Which is Best for Your Business?
FAQs About LTL vs FTL Transportation
What Is LTL Shipping?
Less Than Truckload (LTL) shipping is a type of shipping where freight from multiple shippers is loaded onto the same trailer. LTL is typically the preferred shipping method for small businesses that don't require the capacity of a full truck. It helps businesses lower their shipping costs and allows carriers to use their trucks better.
Pros of LTL Shipping
LTL (Less-than-Truckload) transportation has become increasingly popular. The following are the three best advantages of using LTL shipping:
Lower costs for small loads. With LTL, businesses only pay for the amount of space their shipment takes up on the trailer. The other businesses sharing the same truck pay for the space. This is a money-saving choice for businesses that do not have enough cargo to fill an entire truck.
Flexibility for varying shipment sizes. LTL shipping is ideal for businesses with fluctuating shipment sizes. Whether you’re a small business with limited quantities or a growing company with evolving needs, LTL offers the flexibility to accommodate shipments of different sizes.
Reduced environmental impact. LTL allows truck space maximization, cutting the amount of trucks driving on the roads. Carrying multiple shipments within one vehicle, carriers minimize fuel consumption and make a smaller carbon mark.
Cons of LTL Shipping
Despite its main benefits, LTL shipping also has several drawbacks. They include:
Longer transit times. LTL shipments also take longer. The carrier has multiple drop-offs and pick-ups, which add to the transit time. Shipments aren't necessarily delivered on a fixed schedule, so there can be delivery delays.
The risk of damage. LTL shipments are transported alongside other goods. This increases the risk of damage and calls for extra specialized handling. Fragile goods, in particular, need special care, since the loading and unloading process can lead to mishandling.
More complex tracking. Tracking LTL shipments can be more difficult due to diverse shipment routes. Less accurate real-time tracking with multiple stops and transfers can lead to delays and complicate the estimation of delivery time.
When to Choose LTL Shipping
LTL shipping is a great option in the following scenarios:
Your shipment is under 10,000 lbs. This mode is ideal for smaller shipments. If your goods weigh less than 10,000 lbs or take up fewer than 10 pallets, LTL is a more suitable solution.
You'd like to save money by splitting truck space. With LTL, you split space on the same truck with other shippers. This means that each company only pays for the amount of trailer space it requires.
You have more patience with longer delivery times. If there is no need for speed and your schedule can be flexible, LTL is an ideal option. Due to several stops and transfers, delivery will take longer than with FTL.
LTL Transport Costs
LTL rates typically depend on several factors. This is how the rate generally splits:
Distance. The cost of LTL shipping depends on the distance that it covers. Greater distance typically leads to greater total delivery expense. Drivers also might have additional premium charges for delivery zones that are hard to reach or in rural areas.
Freight class. Depending on the density, stability, handling, and liability, freight classification directly influences shipping costs. Choosing the proper freight class is essential to avoid surprise fees or delayed deliveries.
Weight. The heavier, the higher the total cost. Weight ranges are used by LTL carriers to charge rates, i.e., 0–500 lbs, 501–1,000 lbs, and so on. Minimums for LTL (Truckload) shipments often start at 250 lbs per pallet.
There can be extra fees for accessorial services. Services like the use of a liftgate, residential delivery, or inside drop-off can be added to the overall cost. These extra fees are deducted from the base rate.
Cheaper for small companies. LTL is appropriate for companies that do not have enough freight to fill a truck. It is a means of shipping smaller shipments without paying for the empty space in the truck.
Understanding Freight Classes in LTL Shipping (Meaning)
Freight classes are standardized categories (ranging from Class 50 to 500) used in LTL shipping to determine pricing based on the characteristics of the shipment. These classes are set by the National Motor Freight Classification (NMFC) system. Freight classes can generally be divided into three main categories:
Lower Classes (e.g., Class 50). These include very dense, durable, and easy-to-handle freight such as bricks or steel bars. Because they are compact and less prone to damage, they are the most economical to ship.
Mid-Range Classes (e.g., Class 100–250). This category covers moderately dense or semi-fragile freight like machinery parts, electronics, or unassembled furniture. These items require a balance of space and care, resulting in a moderate shipping cost.
Higher Classes (e.g., Class 300–500). These involve lightweight, bulky, or fragile items such as glassware, assembled furniture, or display materials. Due to their handling complexity and space requirements, they are the most expensive to ship.
What Is FTL Shipping?
FTL, or Full Truckload shipping, is a shipping method where an entire truck is booked for a single shipment. It is the ideal choice for shippers with enough freight to fill a truck or those who require privacy and exclusivity for their shipment. FTL is the most suitable for time-sensitive shipments as the truck goes directly from the pickup point to the delivery location. This reduces transit time and minimizes the risk of delay or damage, making it an excellent choice for high-value shipments.
Pros of FTL Shipping
Let's talk about the advantages of FTL shipping:
Faster transit times due to direct routing. FTL shipments tend to take more direct routes, with fewer stops and transfers along the way. If your shipment has a tight deadline, FTL is the best option.
Reduced risk of damage. Since cargo is loaded once and not handled again until delivery, there is far less risk of damage. This renders it especially suitable for shipping high-value, fragile, or delicate goods.
More dependable scheduling. FTL shipments have more consistent schedules because they travel direct routes. Businesses that rely on timely and regular shipments often prefer this type of shipping for its dependable delivery times.
Cons of FTL Shipping
While FTL (Full Truckload) transportation is beneficial in many ways, it also has some detriments. Some of the key drawbacks to consider are listed below:
Additional cost due to one-truck usage. The FTL shipping will cost you more per unit because you're paying for the entire truck. If what you're shipping is quite light, this service may not be worth the price for you.
Not ideal for small shipments. This approach does not offer the flexibility to accommodate different shipment sizes. Consequently, FTL is not ideal for companies with small loads that do not fill the truck.
When to Choose FTL Transport
FTL shipping is an excellent choice in many cases, including:
Your load weighs more than 10,000 lbs. FTL is perfect if your load weighs more than 10,000 pounds because it is used to fill a truck to capacity. This way, it's a less expensive option for big loads.
You need a faster, direct delivery. FTL gives the quickest mode of transportation from two points without any other transfer or stops. It's suitable for customers who need fast and direct delivery.
You're transporting fragile or valuable items. If you're moving fragile or valuable items, FTL is the better choice. Because there are fewer transits and no transfers, damage in transit is less likely.
FTL Costs
FTL prices are calculated based on a variety of factors. Here's how businesses calculate FTL rates:
Metered based on mileage, fuel cost, and truck availability. The fee is dependent on the distance traveled, current fuel prices, and ease of access to trucks. All these variables are dynamic and therefore affect the overall shipping charge.
Higher initial investment but higher value for large deliveries. Although FTL is more expensive to start with, it is less expensive when shipping large quantities. The cost per unit goes down when the truck is loaded.
No surprise fees because the truck is yours alone for your cargo. Because your shipment alone fills the truck, there are clearer rates. There are no additional handling or consolidation fees to worry about.
LTL vs FTL Transport: Key Differences
Cost Comparison: LTL vs FTL Shipping
LTL (Less Than Truckload) shipping rates are influenced by both freight class and distance. Higher freight classes typically cost more due to increased handling and space requirements. FTL (Full Truckload) shipping is mainly driven by distance, with rates increasing for expedited or very long hauls. Here is a breakdown of cost ranges for both LTL and FTL shipping:
How do LTL and FTL Shipping Impact Delivery Times?
LTL and FTL have different delivery timelines based on how they operate. Here are some specifics for each method:
LTL - Slower. LTL shipments often stop at multiple terminals to pick up and drop off freight from different customers. Frequent stops can extend delivery times and increase the chance of delays.
FTL- Faster. FTL shipments go straight from the pickup location to the destination without additional stops. This makes FTL the quicker option, especially for time-sensitive deliveries.
LTL vs FTL: Which is Best for Your Business?
1. E-commerce & Retail
Best choice: LTL (Less-Than-Truckload)
Ideal for small, frequent shipments. LTL helps reduce costs and ensures efficient deliveries without paying for unused truck space.
2. Manufacturing & Construction
Best choice: FTL (Full Truckload)
Perfect for large, heavy, or bulk shipments. FTL minimizes handling and provides direct delivery for materials that require a full trailer.
3. Perishable Goods
Best choice: FTL (Full Truckload)
Ensures faster transit and temperature control—crucial for keeping perishable items fresh and safe during transport.
Sum up
FTL and LTL both have efficient shipping modes appropriate to diverse needs. Depending on LTL and FTL differences, customers will be able to make an informed decision on what is ideal for them. At BAH Logistics, we are devoted to helping you decide on the best shipping mode most appropriate for your unique needs.
FAQs About LTL vs FTL Transportation
Is LTL cheaper than FTL?
If you're sending lower volumes of freight, LTL is usually cheaper because you're sharing the truck expense with others. FTL is more money but gives the benefit of more rapid and more secure transport on higher volumes and high-value products.
Does FTL mean shipping faster?
Delivery time typically considers different factors like distance, traffic, and schedule. However, FTL is usually faster because the truck makes a direct trip from pick-up to drop-off without additional stops.
When should I use LTL shipping?
If your shipment is less than 10,000 lbs and doesn't require the space of an entire truck, LTL is the way to go. It allows you to share truck space with other shipments, so you pay less.
Can I track LTL and FTL shipments?
Yes, you can track LTL (Less Than Truckload) and FTL (Full Truckload) shipments. Tracking provides you with visibility into the location of your shipment, estimated time of arrival, and any potential delays.
