What Does LTL Mean in Freight? Explained

What LTL Stands For

LTL stands for Less Than Truckload. It’s a freight shipping method used when goods don’t require the full space of a truck. Instead of dedicating a trailer to one customer, carriers combine shipments from multiple businesses into the same truck.

This approach is cost-effective because shippers only pay for the portion of space they use. LTL is most common for palletized freight weighing between 150 and 15,000 pounds — too large for parcel service, but not enough to justify a full truckload.

How LTL Works in Practice

LTL shipments usually move through a hub-and-spoke network. Freight is picked up at the shipper’s location, taken to a local terminal, and combined with other shipments headed in the same direction. From there, the freight moves through regional hubs until it reaches the delivery area.

This process allows carriers to fill trailers efficiently, but it also means shipments may be transferred between trucks along the way. Because of this, transit times can be slightly longer compared to full truckload shipments.

Comparing LTL to Other Shipping Options

The alternatives to LTL are parcel shipping and full truckload (FTL) freight. Parcel carriers specialize in small packages that move quickly through parcel networks. FTL, on the other hand, dedicates an entire truck to a single shipment.

LTL sits between these two. It provides a cost savings over FTL when a shipment doesn’t fill a truck, and it offers more flexibility for larger loads than parcel service can handle. Businesses often choose LTL when they have multiple pallets to ship but not enough to justify booking a full truck.

Benefits of Using LTL Freight

The most direct benefit of LTL shipping is cost efficiency. Paying for only the space used makes it possible to ship goods more frequently without committing to the expense of a full trailer.

Other benefits include:

  • Access to added services such as liftgate delivery, appointment scheduling, or residential delivery.

  • Detailed tracking information, since shipments move through multiple carrier terminals.

  • Flexibility to ship smaller volumes consistently, keeping supply chains active without delays.

Situations Where LTL Makes Sense

LTL is especially useful for businesses with steady but moderate shipping needs. Retailers replenishing store shelves, manufacturers sending parts to distributors, or wholesalers moving smaller bulk orders all rely on LTL to stay efficient.

It’s important, however, to consider the nature of the freight. Fragile or highly time-sensitive shipments may not be a good match for the multiple handoffs involved in LTL. In those cases, full truckload shipping may be a safer option despite the higher cost.

Why LTL Matters in Freight Logistics

LTL fills a critical space in the freight industry by giving businesses a reliable way to ship goods that don’t require a full trailer. It helps smaller companies access national freight networks and gives larger businesses a flexible tool for managing varying shipment sizes.

For shippers, understanding what LTL means — and where it fits compared to parcel and truckload options — makes it easier to choose the right method for each shipment. That knowledge keeps costs aligned with actual needs while ensuring freight continues to move efficiently.