Anytime you talk about shipping cargo inside the United States, LTL or FTL are some of the terms you're bound to hear. They mean "less than truckload" and "full truckload," respectively. They may seem quite simple on their own. The term LTL is when a carrier uses a part of a trailer since the whole trailer is not needed, and FTL is when there is a need for most of the trailer. The difference between LTL and FTL, however, also comes down to the type pf delivery that is needed. It is crucial to have a clear understanding of the differences between LTL vs FTL transportation because it is much more complicated than the simple calculation of how much space is left in the trailer.
In the following parts, we will illustrate what is meant by truckload shipping and explain both LTL and FTL in basic terms. Moreover, we will explore, among other things, the variations between them based on transit times, costs, and handling requirements. In the end, you will have acquired the knowledge that would allow you to ascertain which shipping strategy is best suited for your business needs, whether you are a novice in the world of freight or willing to make changes to an existing logistics strategy.
Contents:
- What Is a Truckload (TL)?
- What Is FTL Freight?
- What Is LTL Freight?
- What is the Difference Between LTL and FTL Freight?
- Choosing the Right Carrier or 3PL: Key to LTL vs FTL Success
- LTL vs FTL Rates
- FTL or LTL: Making Your Decision
What Is a Truckload (TL)?
Before discussing LTL vs FTL, it helps to understand what “truckload” actually means in a practical sense. A truckload typically refers to a quantity of freight large enough to occupy a trailer close to its maximum capacity. The most common dry van trailers in the U.S. range from 48 to 53 feet in length, often holding up to about 26 standard pallets (48" x 40"). Weights generally fall between 10,000 and 45,000 pounds for a full load in a dry van.
Flatbed trailers, known for their open configuration, can legally haul around 46,000 to 48,000 pounds. Although flatbeds accommodate bulkier or oversized items, it’s important to respect dimensional limits or secure special permits for anything that exceeds standard legal measurements. If your freight fills more than half – and often nearly all – of a trailer, you are likely dealing with a truckload shipment.
What Is FTL Freight?
Full truckload (FTL) freight involves reserving an entire dedicated trailer for your shipment. This mode means the vehicle travels directly from origin to destination without sharing space or making numerous stops for other shippers’ freight. Choosing FTL often makes sense if you have a large, time-sensitive load, fragile, or high-value cargo that benefits from minimal handling, or if you simply prefer a more predictable and potentially faster transit time.
Key traits of FTL freight include:
- Dedicated Capacity: You gain exclusive use of the trailer, ensuring no other freight interferes with your shipment.
- Direct Routing: Since the truck moves straight to the destination, transit times are more predictable and often shorter.
- Less Handling: Your freight is typically loaded once and unloaded once, reducing the risk of damage or loss.
What Is LTL Freight?
LTL (less than truckload) involves the combination of a number of small shipments into one big trailer. The shared-space model is ideal when a load is large enough to not be carried in parcel shipments but isn’t large enough to warrant the cost of an entire truck. Since you only cover the cost of the trailer space taken up by your freight, LTL can be quite cost-effective, although this option can be slower.
Key Takeaways of LTL Freight Include:
- Cost Efficient: If your volumes are low, this might help you save money because you are sharing trailer space (and cost) with other shippers.
- More Handling Steps: Given that your freight could be moved, loaded, and unloaded on more than one occasion throughout its transport, packaging becomes an essential aspect.
- Space Flexibility: LTL is suitable when the size of your shipment is fluctuating from load to load, allowing you to reserve only the space you need for each freight.
What is the Difference Between LTL and FTL Freight?
The differences between LTL and FTL is determined to an extent by the particular logistics trailer space occupied by each, but several other parameters are involved as well. FTL shipping tends to use a more direct route, offers less risk of prolonged cargo handling, and is perfect for high-value cargo that needs to be urgently shipped. FTL is better suited where value for money and reduced loading times are crucial. Towing a fully packed trailer would almost always guarantee peace of mind and predictability, while LTL ensures payment only for occupied space.
| Factor | FTL Freight | LTL Freight |
| Cost | You’re paying for the entire truck | You pay for just the space you use |
| Transit Time | Direct and fast | Longer due to multiple stops |
| Handling | Minimal – load once, unload once | Frequent handling increases risk |
| Use Cases | Fragile, time-sensitive, or large loads | Small, cost-sensitive shipments |
It’s like comparing a big rig to a family car. The fuel consumption and operating costs are worlds apart, and for good reason. Similarly, FTL and LTL serve vastly different needs.
Choosing the Right Carrier or 3PL: Key to LTL vs FTL Success
Selecting the appropriate transportation partner can make a tremendous difference in your shipping experience. For FTL shipments, working directly with a reputable carrier can streamline your operations, especially if you regularly ship large volumes. A well-established trucking company, such as Chicago-based HMD Trucking, with its decades of industry experience and robust fleet of dry vans and flatbeds, can provide a stable, reliable service. Their direct contracts with shippers and proven track record help ensure your full truckload shipments run smoothly, efficiently, and on time.
While using LTL freight is cheaper than the standard ones, the price difference is not always so huge. Most carriers will not provide discounts based on the space occupied, so we can see how LTL freight becomes more competitive. Partnering with a skilled 3PL provider that seamlessly delivers your LTL freight from point A to point B – such as HMD Transport – can significantly increase the profit margins of any given company. A competent 3PL will:
- Leverage Carrier Relationships: They often have longstanding agreements with multiple LTL carriers, allowing for better rates and service options.
- Assist with Complex Classification: They can help you navigate National Motor Freight Classification (NMFC) codes, ensuring your freight is properly rated.
- Streamline Claims and Exceptions: In case of delays or damage, a 3PL can simplify the process of filing claims and seeking resolutions.
LTL vs FTL Rates
Comparing truckload vs less than truckload rates directly can be challenging because they follow different pricing structures. FTL rates are often quoted based on a per-mile cost plus any applicable surcharges. The final price is influenced by factors such as load weight, lane (origin-destination pair), season, and market conditions.
LTL pricing, however, is based on a freight classification system that LTL-quoting determines. There are 18 freight classes. Each and every commodity is assigned a freight class based on its various attributes, like density, stowability, and liability risks. Items with higher density are easier to handle and are often placed in the lower classes, which are less costly to transport. Meanwhile, more delicate or lighter bulk gets ranked higher, resulting in a more expensive rate. To gain a better rate with LTL, it is always suggested using a 3PL or analyzing the freight codes with the help of one.
Let's break down LTL vs FTL rates to better understand their unique pricing structures and how they impact your shipping costs.
FTL Pricing
- Straightforward: FTL rates are typically calculated per mile, often quoted as a flat rate.
- Influencing Factors: Weight, distance, fuel surcharges, and even the season can affect pricing.
- Current Average Market Rates:
- Dry Van: $1.71/mile
- Flatbed: $1.97/mile
- Reefer (temperature-controlled): $2.05/mile
LTL Pricing
- Complex: LTL rates depend on weight, dimensions, density, and freight class (which ranges from 50 to 500).
- Freight Class Matters: For instance:
- Class 50 (High Density ): Durable, dense, and easy to handle, costing about $1.25 per pound.
- Class 70 (food items, car parts, accessories, and automobile engines): typically have an average transportation cost of $9.50.
- Class 500 (Fragile Goods): Light and tricky to ship, costing up to $158.35 per pound.
Tip: Optimize your packing to fit your shipment into a lower freight class. Shrink-wrapping goods onto a pallet can reduce costs significantly.
FTL or LTL: Making Your Decision
When choosing between LTL and FTL, consider the nature of your shipments, your budget, and the level of control you need over transit times. If speed, predictability, and minimal handling top your priority list, FTL may provide the most benefits. If cost savings and flexibility matter more and you can accommodate a longer transit window, LTL might be the better option.
Your choice may change with time and business growth. Some businesses combine FTL and LTL services depending on the needs of individual shipments. By keeping yourself updated, knowing the details of your shipment, and working with trusted carriers or 3PLs, you can make good and affordable shipping decisions that are suitable for effective supply chain management.
Taking the time to think about the fundamental differences between LTL vs FTL enables you to formulate an effective business logistics strategy, irrespective of whether you are an experienced shipper or a first-timer. But then again, what counts is that any load ranging from large to small always gets delivered in the most professional and cost-efficient manner possible.
For additional information about HMD Trucking FTL transportation services as well as free estimates related to your freight and load shipping costs, navigate to the “Transportation” section of the HMD Trucking website.
