Less-than-truckload (LTL) freight shipping is one of the most efficient ways for businesses to move palletized freight that doesn’t require an entire trailer. Instead of paying for unused truck space, multiple shipments from different companies share the same truck, allowing shippers to reduce costs while still moving freight quickly across the country.
For companies that regularly ship pallets, LTL shipping offers a flexible and cost-effective option compared to full truckload (FTL) shipping. However, understanding how LTL works, how pricing is calculated and how to avoid common issues can make a big difference in the success of your shipments.
This guide covers everything you need to know about LTL freight shipping — including how it works, how pricing is calculated, how to choose a carrier and how to avoid common problems like freight damage or delays.
If you're looking for help managing LTL shipments, the logistics experts at ATS can help you find reliable carriers and simplify the process.
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Jump to:
What Is LTL Freight
How LTL Shipping Works
LTL Costs
Choosing a Carrier
LTL vs Other Shipping
Avoiding Damage
Freight Brokers for LTL Shipping
What Is LTL Freight?
LTL freight (less-than-truckload freight) refers to shipments that are too large for parcel carriers but do not require a full truckload trailer. These shipments typically range from a single pallet up to several pallets and share trailer space with other shipments traveling in the same direction.
Because multiple shipments are consolidated into a single truck, LTL carriers move freight through a network of terminals where shipments are sorted and transferred as they move toward their destination.
This system allows shippers to move smaller freight quantities while only paying for the portion of the trailer space they use.
LTL shipping is commonly used by:
- Manufacturers shipping palletized goods
- Distributors replenishing inventory
- E-commerce companies shipping bulk products
- Businesses moving freight between facilities
To learn more about how LTL freight works, read our full guide:
How LTL Shipping Works
LTL shipping works through a hub-and-spoke network where freight moves between local pickup locations and centralized freight terminals. Each shipment is consolidated with other freight that is traveling along similar routes.
The typical LTL shipping process includes:
- Pickup
A carrier collects palletized freight from the shipper's location. - Terminal consolidation
The freight is transported to a regional terminal where it is sorted with other shipments. - Linehaul transportation
The consolidated freight is moved long distances between terminals. - Final delivery
The shipment arrives at a destination terminal and is delivered to the receiver.
Because freight moves through several terminals during transit, proper packaging and palletizing are important to prevent damage.
For a detailed walkthrough of the shipping process, see:
How to Ship LTL Freight: Step-by-Step Guide
Understanding LTL Shipping Costs
LTL shipping costs depend on several factors that determine how much space your freight takes up and how complex the shipment is to transport.
Some of the most common factors that affect LTL pricing include:
Freight class
The National Motor Freight Classification (NMFC) system assigns freight classes based on density, handling requirements and liability risk.
Weight and dimensions
The heavier and larger the shipment, the higher the transportation cost.
Distance traveled
Longer shipping distances generally increase the cost.
Pickup and delivery locations
Shipments traveling to residential areas or remote locations may require additional services.
Accessorial services
Special services such as liftgate delivery, inside delivery or appointment scheduling can add additional fees.
These additional services are called accessorial charges, and they can significantly impact the total cost of a shipment.
To learn more about common LTL fees, read:
Common LTL Accessorial Charges Explained
Choosing the Right LTL Carrier
Choosing the right LTL carrier can have a major impact on transit times, freight safety and overall shipping costs. Different carriers specialize in different regions, equipment types and service levels.
When selecting an LTL carrier, consider factors such as:
- Service coverage and lane availability
- Transit time reliability
- Freight damage rates
- Technology and shipment tracking
- Customer service responsiveness
Working with a logistics partner or freight broker can make it easier to evaluate multiple carriers and select the best option for your shipment.
To see a breakdown of leading LTL carriers and tips for choosing the right provider, read:
Top LTL Carriers and How to Choose the Right One
LTL vs PTL Shipping
In some cases, shipments fall between traditional LTL and full truckload shipping. Partial truckload (PTL) shipping may be a better option for shipments that are larger than standard LTL freight but still do not require a full trailer.
While LTL shipments move through terminal networks and share space with multiple shipments, PTL shipments often travel more directly with fewer stops.
Understanding the difference between these two shipping methods can help businesses choose the most efficient and cost-effective transportation option.
Watch this video explaining the difference between LTL and PTL shipping:
Preventing LTL Freight Damage
Because LTL freight moves through multiple terminals and is handled several times during transit, proper packaging is essential to prevent damage.
Some best practices for protecting LTL shipments include:
- Using sturdy pallets
- Securing freight with shrink wrap or banding
- Protecting edges and corners
- Labeling freight clearly
- Ensuring pallets are evenly balanced
Even with proper preparation, damage can still occur during transit. Understanding how to file a freight claim and document damage can help ensure issues are resolved quickly.
To learn more about protecting shipments and filing claims, read:
How to File an LTL Freight Claim and Avoid Damage
What Happens if LTL Freight Is Lost or Delayed?
Occasionally, shipments can be delayed or misplaced while moving through the LTL network. When this happens, it is important to act quickly to locate the freight and resolve the issue.
Shippers can work with carriers or logistics providers to track shipments, investigate delays and coordinate recovery if freight is lost or damaged.
Understanding the steps involved in recovering freight can help minimize disruption to your operations.
Learn more in our guide:
How to Expedite or Recover Lost LTL Freight
Should You Use a Freight Broker for LTL Shipping?
Many companies choose to work with freight brokers or third-party logistics providers (3PLs) to manage their LTL shipments.
A freight broker can help by:
- Finding reliable carriers
- Negotiating competitive rates
- Coordinating shipments
- Managing documentation
- Handling issues that arise during transit
Working with a logistics partner also gives shippers access to a larger carrier network and additional expertise in navigating the complexities of LTL shipping.
To learn more about the advantages and potential drawbacks of using a freight broker, read:
Pros and Cons of Using a Freight Broker for LTL Shipping
Need Help Shipping LTL Freight?
Managing LTL freight can be complex, especially when balancing cost, transit times and carrier reliability. Working with an experienced logistics provider can simplify the process and help ensure shipments arrive safely and on time.
ATS helps businesses coordinate LTL freight shipments across North America by connecting shippers with trusted carriers and providing support throughout the shipping process.
Whether you ship occasionally or manage frequent LTL shipments, our team can help you find the right transportation solution.
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