What Is the definition of less than truckload (LTL) freight?
LTL freight refers to the transportation of products or goods that do not require a full truckload. These smaller loads typically result in many separate shipments being transported on one truck. LTL freight shipments are usually arranged on one to six pallets and range anywhere from 150 pounds to 10,000 pounds.
LTL carriers specialize in optimizing their loads to move more goods for more shippers in an efficient manner. Shippers like LTL freight shipping because it affords them flexibility, cost-efficiency, and environmental benefits. However, LTL shipping can be rather complex.
How does LTL freight work?
Essentially, LTL freight works by combining shipments from multiple shippers onto a single truck, allowing each shipper to pay only for the trailer space they use rather than the cost of an entire trailer. Shipping rates are typically determined by the amount of space the freight occupies, the freight class of the items being shipped, and the pickup and delivery locations.
LTL freight can be shipped standard, expedited, or guaranteed. LTL freight can also be shipped with special services added. Some of these services include lift gate pickup/delivery, inside pickup/delivery, and residential pickup/delivery. These services require additional fees called accessorial fees.
What are the benefits of LTL freight?
1. Lower shipping costs
LTL freight consists of several smaller shipments that fill an entire trailer. Because your shipment only uses a portion of the trailer’s available space, you only pay for the space you use. This ensures your cost will be a fraction of what a dedicated truckload shipment would cost.
2. Flexible shipping for smaller loads
In a world where e-commerce has become the norm, businesses need to ensure their shipping methods line up with the needs of their customers. LTL freight shipping improves efficiency and delivery speeds by bypassing the need for each shipment to fill a full trailer. Using LTL freight shipping ensures your freight or inventory ends up exactly where it needs to be, when it needs to be there.
3. Scalable for growing businesses
Small-midsize businesses greatly benefit from LTL shipping. Most ship fewer goods and spend less money on freight than large businesses. LTL freight shipping allows small-midsize businesses to benefit from professional shipping services without paying high costs for unused space.
4. Reduce environmental impact
The LTL freight shipping process results in fewer trucks carrying partial loads, rather than more trucks carrying full loads. This drop in the number of trucks needed to get goods to their destinations reduces emissions and your company’s carbon footprint.
What are the challenges of LTL freight?
1. Longer transit times and multi-stop deliveries
Because LTL freight is consolidated with shipments from multiple companies and moves through a network of terminals and delivery stops, transit times are typically longer than direct-shipment services. Most LTL shipments take 2 to 4 days longer, depending on distance, routing, and service level. Understanding delivery timelines and planning accordingly can help ensure shipments arrive when needed while balancing transportation costs.
2. Finding reliable LTL capacity at the right price
Securing the right LTL service can be challenging, as rates, transit times, carrier networks, and service capabilities can vary widely. Balancing cost with reliability requires evaluating multiple carrier options to ensure they can meet your shipment requirements. Leveraging a freight marketplace or online quoting tool can simplify the process by comparing carriers, pricing, and service levels in one place, helping you make a more informed decision.
3. Accurate freight classification and shipment details
LTL freight shipping requires a focus on the details. Freight class, weight, dimensions, pickup and destination locations, delivery requirements, and shipment deadlines all influence the cost and service level of an LTL shipment. Accurate freight classification is especially important, as incorrect National Motor Freight Classification (NMFC) classifications can lead to reclassifications, billing adjustments, delays, and disputes.
To help improve accuracy, C.H. Robinson's NMFC Classifier Agent leverages shipment data and NMFC guidelines to assist with determining the appropriate freight class. By paying close attention to shipment specifics and ensuring accurate classification from the start, organizations can achieve more predictable pricing, reduce exceptions, and improve overall shipping efficiency.
What are the best practices for optimizing your LTL freight shipping strategy?
To successfully ship LTL freight, make sure your organization pays attention to the following components:
1. Use transportation management systems to optimize LTL shipping
A transportation management system (TMS) provides shipment visibility, business intelligence, carrier connectivity, and supply chain insights that can help lower costs, improve decision-making. By centralizing shipment planning and execution, a TMS can streamline carrier selection, improve routing decisions, provide real-time visibility, and simplify freight management
2. Reduce costs through LTL freight consolidation
While technology can help identify consolidation opportunities, successfully combining freight often requires the expertise and network of a freight consolidator.
By strategically grouping compatible shipments from multiple shippers, consolidators can build more efficient full truckloads that improve capacity utilization and lower transportation costs. Individual LTL shipments move through consolidation centers, where freight is quickly sorted and combined, often departing within 24 hours.
This approach not only drives efficiency and savings but can also improve service reliability. Because freight is typically handled fewer times than in traditional LTL networks, shippers may benefit from reduced risk of damage, fewer claims, and more consistent on-time delivery performance.
3. Improve LTL performance with accurate shipment data
Inaccurate shipment details or improper packaging require carriers to invest additional time and resources. Strengthen carrier relationships by reporting shipment information accurately—including weight and freight class—and packaging freight appropriately for its characteristics. This helps reduce processing time and costs for carriers while supporting stronger working relationships.
Key Takeaways for LTL Freight Shipping.
By understanding the benefits, challenges, and best practices of LTL freight shipping, organizations can make more informed transportation decisions that support both operational and business goals. The key is finding the right combination of technology, expertise, and capacity to keep freight moving efficiently.
Ready to get more value from your LTL freight? C.H. Robinson can help you identify the right mix of services to fit your freight needs, improve efficiency, meet rising customer expectations, and keep shipments moving with confidence. Connect with us today to explore how our LTL solutions can support your supply chain goals.
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