If you’ve ever received an Amazon package in one or two business days, you’ve experienced the power of the LTL freight industry. According to Mordor Intelligence, the LTL segment of U.S. shipping is valued at around $109 billion and is growing at an annual rate of over 4%.
LTL shipping is a key component of the shipping industry. LTL routes are vital for transporting consumer goods, perishable items, and manufacturing resources. These shipments keep the American economy moving.
So, what does LTL mean in trucking? How can you ship packages via LTL freight? And can your business benefit from LTL solutions?
This blog answers all these questions and walks you through the LTL shipping process. Let’s dive in.
What Does LTL Mean In Trucking?
LTL refers to less-than-truckload shipping. It’s a cost-effective way to transport goods that require less space than a full truckload. Whether shipping household goods or managing business logistics, LTL might be your best option.
Less-Than-Truckload vs. Full Truckload Shipping
The key differences between LTL and FTL (Full Truckload) shipping are:
- Size:
- LTL shipments share trailer space with others.
- FTL shipments occupy an entire truck.
- Weight:
- LTL shipments range between 150 and 15,000 pounds.
- Anything heavier qualifies as FTL.
Who Uses LTL Shipping?
Several of America’s largest industries utilize LTL shipping to keep their businesses thriving. These include pharmaceutical companies, e-commerce enterprises, chemical and automotive manufacturers, and other industries that periodically require supplies at different processing plants.
These industries prefer LTL shipping for several reasons:
- Faster than waiting to fill an entire truck.
- Cheaper for smaller shipments.
- Flexible for shipping to diverse destinations.
- Scalable for efficient logistics.
How Does LTL Shipping Work?
Now that we’ve defined what LTL means in trucking, let’s explore how it operates:
- Shipments are picked up and sent to a regional hub.
- At the hub, packages are consolidated based on weight, size, and direction.
- Trucks follow spoke-and-hub routes to optimize delivery.
This spoke-and-hub model allows LTL companies to consolidate different packages into a full container or truckload of goods. The consolidation is usually based on the direction, weight, volume, and priority of different shipments.
The consolidation of LTL shipments is very important. It is the major factor that allows LTL carriers to reduce the cost of shipping by achieving economies of scale. So, if you have smaller packages that you need to ship to different destinations at different times, LTL is an extremely efficient way of shipping.
Benefits of LTL Shipping
So, how exactly can LTL shipping benefit you? It offers several advantages to people and companies looking to ship small packages, including:
- Cost Savings: Rent only the space you need.
- Eco-Friendly Shipping: Fewer trucks on the road mean reduced emissions.
- Flexibility: Ship on-demand without waiting for a full load.
Factors Affecting LTL Shipping Rate
Now, we come to the ultimate question: how much does LTL freight cost? We have established that it definitely costs less than FTL shipping. But by how much? And what drives LTL shipping costs? Let’s check out the main factors that affect LTL shipping rates.
- Freight Class and Size: Determined by dimensions and weight.
- Distance and Delivery Zones: Rates vary based on destination and urban vs. rural zones.
- Accessorial Fees: Services like liftgate delivery or white-glove handling may add costs.
LTL vs. FTL: When to Choose LTL
So, which method is ideal for your shipment or long-term shipping strategy? The answer depends on several factors.
Consider LTL when:
- Your shipment weighs less than 15,000 pounds.
- You need urgent, smaller deliveries.
- Your goods can handle shared transit.
Common Mistakes in LTL Shipping
To ensure that you’re taking complete advantage of LTL shipping, here are some common mistakes to watch out for:
- Improper Packaging: Protect items to prevent damage.
- Incorrect Freight Classification: Double-check dimensions.
- Overlooking Accessorial Fees: Account for all service charges upfront.
Optimizing LTL Shipments
- Package Properly: Use protective materials and secure your items.
- Choose the Right Carrier: Prioritize experience and customer reviews.
- Understand Freight Classification: Accurate classification saves time and money.
Technological Advancements in LTL Shipping
Cutting-edge innovations are transforming how LTL shipping operates. Futuristic navigation, tracking, and logging techniques make LTL shipping faster and more efficient. Here are some of the major advancements that are revolutionizing the world of LTL Shipping:
Advanced Telematics: Advanced telematics combines the power of advanced GPS and onboard diagnostics to make tracking easier. Logistics companies use it to create a computerized map detailing the locations of different vehicles.
These help logistics companies troubleshoot problems in real time and create smarter routes to make operations more efficient.
Data Analytics and Logistics Software: Data analytics and logistics software that utilizes machine learning and artificial intelligence to detect patterns underlying shipping operations. They help fleet managers and logistics operators to create vehicle maintenance routines and driver schedules.
This helps minimize driver fatigue, reduce asset downtime, and achieve operational excellence.
Automation, Sustainability and Asset Management: Automation and electrification are also trends that are also set to transform the LTL industry. They are helping LTL companies go green, decrease carbon emissions and meet sustainability requirements.
These technologies will also accelerate the development of automated fleets that require minimal human intervention. Thus, these advancements will drive better asset management and sustainable shipping.
Begin Your LTL Journey
We have seen the vital role that LTL shipping plays in helping crucial American industries survive and thrive. They ensure that customers get what they need as soon as they need it.
LTL freight can thus help your company expand its operations by guaranteeing a robust shipping experience. It can also strengthen your operations by streamlining the supply chain and ensuring timely delivery of your shipments.
At uShip, we offer tailored LTL solutions to simplify your supply chain. This frees up your strategic resources so you can focus on what you do best while we take care of the shipping.
Explore our smart LTL freight shipping solutions for businesses and leverage their transformative solutions for a smooth supply chain experience.
Most Common Questions People Also Ask (PAA)
What is the weight limit for LTL shipping?
According to the National Motor Freight Traffic Association, LTL shipments must weigh between 150 and 15,000 pounds. Thus, the maximum allowable weight for LTL shipments is 15,000 lbs.
How does LTL shipping differ from parcel shipping?
Parcel shipping is a quicker, door-to-door service suited to individuals or companies that want to ship small packages, while Less-Than-Truckload shipping is suited to shipping larger, consolidated shipments. Thus, parcel shipping and LTL shipping differ in two key aspects: the time it takes to ship and the volume/weight of the shipments.
How are LTL freight rates calculated?
LTL freight rates are calculated based on several factors. These include the distance over which a parcel has to be shipped, the weight and volume of the shipment, the freight classification, prevailing fuel prices, and more.
What packaging is required for LTL freight?
LTL freight shipments are usually packed in boxes or pallets. Individual items within the shipment may be secured through bubble wrap or foam. Additionally, LTL shipping companies also ensure that a layer of plastic covers the pallets or boxes to minimize contact with dust or moisture.
Can LTL shipments include hazardous materials?
While carriers may have guidelines or operating procedures wherein they separate such materials, if you are shipping hazardous or hazmat materials, ensure that you package them safely and include warnings regarding such materials.
How long does LTL shipping take?
The time it takes for your LTL freight shipment to arrive depends on the distance and the prevailing weather conditions. For instance, interstate LTL shipments may arrive in 1-2 business days. However, cross-country LTL shipments may take up to 6 business days to arrive at their destination. You can monitor your LTL shipment through instant tracking services provided by most carriers.
