Free Guide to Understanding LTL Freight Carriers

What LTL Freight Carriers Are and How They Work

LTL stands for Less Than Truckload. An LTL freight carrier is a transportation company that moves freight that doesn't fill an entire truck. Instead of renting a whole truck for a small shipment, businesses can share truck space with other shippers. This approach makes shipping more affordable for companies sending goods that weigh between 150 and 15,000 pounds.

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Traditional full truckload (FTL) shipping works differently. A company pays to use an entire 53-foot trailer, whether the cargo fills it completely or not. For small to medium shipments, this creates wasted space and higher costs per pound shipped. LTL carriers solve this problem by consolidating shipments from multiple customers into single trucks.

Here's how the typical LTL process works: A shipper contacts a carrier with details about their freight—weight, dimensions, freight class, and destination. The carrier provides a quote based on these factors. When the shipper books the shipment, the carrier picks up the goods and takes them to a local distribution center. At the center, freight gets sorted and consolidated with shipments heading to similar destinations. The truck then travels to another distribution center closer to the final destination, where the freight is unloaded and sorted again. Finally, the carrier delivers to the end customer.

According to the American Trucking Associations, LTL carriers handled over 2 billion shipments in a recent year. These carriers operate in nearly every U.S. state and many international routes. Common items shipped via LTL include furniture, electronics, machinery parts, retail products, and construction materials.

Practical takeaway: Understanding that LTL carriers consolidate shipments helps explain why delivery takes longer than FTL shipping but costs less. Plan for 2-5 business days for LTL delivery, depending on distance and carrier network.

Key Differences Between LTL and Full Truckload Shipping

The main difference between LTL and FTL shipping comes down to cost structure and speed. FTL shipping costs less per mile because one shipper pays for the entire truck. However, that shipper pays a much higher total amount. LTL shipping spreads the cost across multiple shippers, making it cheaper per pound for smaller shipments, but the per-mile rate is higher.

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Delivery speed differs significantly between the two methods. FTL trucks typically travel directly from origin to destination, often completing deliveries in 1-3 days depending on distance. LTL shipments make multiple stops at distribution centers, adding 2-5 business days to the journey. A shipment from New York to Los Angeles might take 2-3 days via FTL but 4-6 days via LTL because the truck stops in multiple cities to pick up and drop off freight.

Handling and risk exposure also vary. FTL shipments experience fewer transfers between vehicles, reducing damage risk. LTL freight gets loaded and unloaded multiple times at each distribution center. Research from the Transport Topics found that LTL carriers report damage claims at roughly 0.5-1% of shipments, compared to 0.2-0.4% for FTL, though this remains low overall. However, professional LTL carriers use equipment and procedures designed to minimize damage during these transfers.

Cost comparison examples show the practical differences. Suppose a business needs to ship 5,000 pounds from Chicago to Dallas. An FTL quote might be $1,200-1,500 for the full truck. An LTL quote for the same shipment might be $600-900, since the shipper only pays for their portion of the truck. Conversely, if that same business shipped 40,000 pounds, FTL becomes more economical because the price per pound drops significantly.

Pricing models also differ. FTL rates are based mainly on distance and truck type. LTL rates depend on weight, dimensions, freight class (which reflects how easy the goods are to handle), origin, destination, and current market demand. A freight class 50 item (like clothing) costs less to ship than a freight class 500 item (like hazardous materials), even at the same weight.

Practical takeaway: Use LTL shipping for shipments under 10,000 pounds going to different destinations. Consider FTL for larger volumes or when you have freight heading to a single location. Request quotes from both service types to compare actual costs for your specific shipment.

Understanding Freight Classes and How They Affect Pricing

Freight class is one of the most important factors determining LTL shipping cost. The National Motor Freight Traffic Association created a system that categorizes freight into 18 classes, ranging from class 50 to class 500. Each class reflects how difficult the freight is to transport, handle, and store. Easier freight to handle receives lower class numbers and costs less to ship. More difficult freight receives higher numbers and costs more.

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The freight classification system considers four main factors: density (weight per cubic foot), stowability (how easily it fits in a truck), handling (whether special equipment is needed), and liability (risk of damage or hazard). Density is particularly important. Dense, compact items like machinery or metals occupy less space and cost less to ship per pound. Light, bulky items like furniture or foam padding take up more truck space and cost more.

Common freight classes and examples show how the system works in practice. Class 50 includes items like paper, cardboard, and bagged commodities—very dense and easy to handle. These cost the least to ship. Class 85 covers appliances, machinery, and engines. Class 125 includes furniture and fixtures. Class 250 includes items like automotive parts or clothing on hangers—light items that take up significant space. Class 500 is the highest category, reserved for hazardous materials, extremely fragile items, or goods requiring special handling.

Determining the correct freight class requires accuracy, as using the wrong class creates problems. If a shipper declares a lower class than the freight actually qualifies for, the carrier may charge additional fees when the shipment is received and weighed. If a shipper declares a higher class, they pay more than necessary. Some carriers offer free classification services to ensure accuracy.

A real-world example illustrates the impact. Two shipments weighing 2,000 pounds from New York to California might have very different costs. A pallet of dense machine parts classified as class 85 might cost $800-1,000 to ship. The same weight in upholstered furniture classified as class 250 might cost $1,200-1,500 because the furniture takes up more truck space. The difference comes entirely from the freight class.

Technology now helps determine freight classes more accurately. The NMFTA publishes detailed classification guidelines, and some logistics software can recommend appropriate classes based on product descriptions. However, businesses should verify their classifications before shipment to avoid surcharges or overpayment.

Practical takeaway: Always double-check your freight class before requesting quotes. Incorrect classifications lead to unexpected charges or overpayment. When in doubt, contact the carrier directly—they can help verify the correct class for your specific goods and may adjust the classification if needed.

How LTL Carriers Charge for Shipments

LTL carriers use a detailed pricing formula that goes beyond simple weight and distance calculations. Understanding the components of LTL pricing helps shippers anticipate costs and budget accordingly. The base rate typically depends on weight, distance, freight class, origin, and destination. However, numerous additional factors and fees apply in real-world situations.

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The density of your shipment significantly influences pricing. Carriers measure density as pounds per cubic foot. A shipment that weighs 2,000 pounds but occupies 800 cubic feet (2.5 lbs per cubic foot) is considered light and takes up valuable truck space. The same 2,000 pounds compressed into 200 cubic feet (10 lbs per cubic foot) is much denser and more economical to ship. Carriers sometimes charge based on whichever is greater: actual weight or dimensional weight. Dimensional weight is calculated by dividing the cubic feet by a divisor (usually 166-194, depending on the carrier) to determine the billable weight.

Additional fees beyond the base rate are common in LTL shipping. Fuel surcharges typically add 5-25% to the base rate, fluctuating with oil prices. Residential delivery fees ($75-150+) apply