What is LTL? An Introduction to Less-Than-Truckload Shipping

Every industry has its own lingo, and it takes time to learn everything you need to know so you can roll in the deep. This article defines less-than-truckload (LTL) shipping and how LTL operations work. If you're new to shipping, give yourself time to decode the language. It took me six months working full-time, and I still hear (and make up) new terms all the time. We’ll start with one of the most widely used and misunderstood terms: LTL.

LTL very simply means "less than truckload" freight. In this blog, we’ll cover what LTL shipping is, how it works, the factors that impact LTL shipping rates, and why it’s a cost-effective solution for many businesses.

How Does Less-Than-Truckload Shipping Work?

Using my home turf as an example, our LTL carriers in Boston pick up and combine many small shipments from local manufacturers going to similar destinations throughout the US to fill trailers and move them economically. On the other hand, truckload carriers in Boston move one large shipment that occupies an entire 48' or 53' trailer directly from Boston to California, for example.

LTL trucking companies run "hub & spoke" operations (picture a bike wheel). The hubs are distribution centers located strategically throughout the US to optimize the movement of freight through the carrier’s system. The spokes are local terminals strategically located to reach the highest-density shipping areas without overlapping with the next closest terminal.

At these local pickup & delivery operations, dock-height warehouses with multiple bay doors receive countless trailers from regional hubs packed to the nearest square inch (ideally) with inbound shipments. During the early hours of the next morning, an inbound crew will unload these trailers and cross-dock the shipments onto local delivery trailers. The local drivers at these spoke facilities run their local routes every day, often making the same stops day in and day out, much like a newspaper route.

After the local delivery driver has delivered all this inbound freight, the truck is empty, and the driver is ready to pick up outbound freight. Hence the reason deliveries are generally made in the morning, while pickups are made in the afternoon. As the delivery/pickup driver returns to the local facility with this outbound freight, yet another crew starts their day unloading these local trailers and building outbound loads.

Picking up many smaller shipments from different customers in the same area and combining them to share a truck & travel as far as possible creates an affordable way to move these smaller shipments. 

What LTL Is (and What It’s Not)

As the term indicates, less-than-truckload applies to freight that doesn’t require a full truckload. But, alas, if it were only that easy…

First, I’ll explain what LTL shipping is, and then it makes sense to explain what LTL is not. 

DISCLAIMER: These are guidelines, and there are exceptions in every case, but applying Pareto’s Law of 80/20 will get you about 95% correctness.

LTL is:

• 100 lbs

• < 20,000 lbs

• On/in a pallet, skid, crate, carboy, or tote

• Adheres to NMFC rules

• Bill of Lading (BOL) is required

• Limited liability according to NMFC (read: limited insurance)

• Business to business

• Business to residence or vice versa

• Loaded with other freight and protected by being loaded 'high and tight'

LTL is NOT:

• Floor loaded or loose

• More than 20 linear feet (this is considered "volume" or partial truckload)

• Residence to residence (unless another service is used)

• Insured at full value

• Guaranteed freight to pick up or deliver on specific dates or times

• On air ride trucks or blanket-wrapped (white glove shipments)

• On the same truck from beginning to end

Now that we’ve covered what LTL shipping is (and isn’t), let’s take a look at what goes into determining the cost of an LTL shipment. Understanding the factors that impact pricing can help you plan your shipments more effectively and avoid surprise charges.

Understanding LTL Shipping Rates

When it comes to LTL rates, things aren’t as straightforward as slapping a price tag on your shipment. Several moving parts (pun intended) go into calculating your rate. Here’s what carriers take into account when determining how much your shipment will cost:

• Distance: This one’s pretty simple— in general, the farther your freight has to go, the more it’s going to cost. A cross-country haul will naturally have a higher price tag than a shorter regional move. However, if you need a shipment picked up from or delivered to a remote or rural location, the rate will naturally be higher than if you stay within major metro areas.

• Freight class: The NMFC freight class is the category your shipment falls into based on its size, weight, and how easy it is to handle or store. Bulkier or more fragile freight could cost more to ship because it needs extra care or takes up more space.

• Special handling: If your shipment requires special treatment—like if it’s fragile, hazardous, or perishable—it’s going to cost more to make sure it’s handled properly.

• Extra services: Need something beyond standard pickup and delivery? Things like collecting proof of delivery, inside delivery, liftgate service, or residential pickup or delivery will all add to your bill.

• Expedited delivery: Have a time-sensitive shipment? If you need your freight to arrive faster than the usual transit time, expect to pay extra for expedited service.

These factors all play a role in how your LTL shipping rate is calculated. By understanding them, you can better plan and budget your freight shipments, ensuring you get the best bang for your buck.

Why Choose Less-Than-Truckload Services?

Less-than-truckload (LTL) services are a great option for businesses and non-commercial shippers that need to move shipments quickly and affordably. But it’s important to manage expectations—fast, damage-free, and low-cost shipping can be difficult to achieve all at once. 

If you need extra protection for fragile items or specific handling, you may want to explore white glove services. For shipments that require guaranteed delivery dates or faster transit times, you’ll likely need to pay a premium for expedited LTL services or consider options like expedited sprinter vans. It’s all about balancing cost, speed, and care.

Whether you're a business, a startup without a dock, or an eBay seller shipping from your home, having a knowledgeable LTL partner in your corner is essential. Reach out to the team at TFWW Manchester and let our experts help you find the perfect LTL solution tailored to your business—so you can ship smarter, not harder.