What Does LTL Mean in Logistics? Definition & Use

In the world of freight shipping, few acronyms come up more frequently than LTL. It stands for “Less Than Truckload,” and it refers to a method of shipping freight that doesn’t require a full trailer. For companies that need to move smaller shipments efficiently and cost-effectively, LTL is often the go-to solution.

But what exactly qualifies as LTL? How does it work, and why is it such a critical part of modern supply chains? In this article, we break down what LTL means in logistics and how it’s used by shippers, carriers, and third-party logistics providers across the country.

 

LTL Defined: What It Really Means

LTL (Less Than Truckload) shipping refers to the transportation of freight that doesn’t require an entire trailer’s worth of space. In an LTL shipment, multiple customers share trailer space, and each pays only for the portion of the trailer their freight occupies.

This makes LTL a highly efficient model for businesses shipping quantities that fall somewhere between parcel delivery and full truckload (FTL) freight.

In most cases, LTL shipments:

  • Weigh between 150 and 15,000 pounds

  • Consist of one to six pallets

  • Don’t need dedicated truck space

Rather than sitting idle waiting for a full truckload, freight moves as soon as it’s combined with other shippers’ loads going in the same direction.

 

How LTL Shipping Works

LTL shipping relies on a hub-and-spoke distribution model. Freight is picked up from various shippers and consolidated at regional terminals. From there, it’s moved to major hubs where it’s sorted and routed toward its final destination.

Along the way, shipments may be loaded and unloaded multiple times as they transfer through terminals. This structure allows for flexible, scalable delivery across wide regions, but it also means that packaging and handling care are critical.

Carriers typically use a mix of linehaul trucks (for long distances) and local delivery vehicles (for final-mile service), making LTL ideal for businesses without large shipping volumes.

 

Advantages of LTL Shipping

One of the biggest reasons LTL is popular is its cost efficiency. Since shippers share space with others, they avoid paying for unused trailer capacity. But the benefits go beyond savings.

LTL shipping also offers:

  • Regular service schedules across major freight lanes

  • Liftgate, inside delivery, and limited access options

  • Tracking and proof of delivery features similar to parcel carriers

  • Environmental benefits due to optimized vehicle space utilization

For small to midsize businesses that ship frequently but in smaller quantities, LTL fills a logistical gap that full truckload services simply can’t match.

 

When Should You Use LTL?

LTL is most effective when shipping freight that:

  • Is too large for parcel service but too small to fill a truck

  • Has a flexible delivery timeline

  • Can be consolidated without risk of damage

Common industries that rely heavily on LTL include retail, automotive parts, pharmaceuticals, consumer packaged goods, and electronics.

However, LTL may not be the best fit for highly time-sensitive freight, oversized items, or delicate materials that can’t handle frequent loading and unloading.

 

LTL vs. FTL: Key Differences

While both LTL and full truckload (FTL) shipping move freight over long distances, they serve different needs. FTL uses an entire trailer for a single shipment, which generally means faster transit, fewer stops, and less handling.

By contrast, LTL prioritizes cost over speed. Transit times are longer due to multiple stops and freight transfers, but the savings can be significant—especially for repeat shippers working with predictable volumes.

Ultimately, choosing between the two comes down to weight, volume, urgency, and budget.

 

Freight Class and Pricing in LTL

LTL pricing is largely determined by freight class, which is a standardized system used by carriers to calculate rates based on density, stowability, handling, and liability.

There are 18 different freight classes, ranging from Class 50 (dense, hard-to-damage items) to Class 500 (bulky or fragile items). Lower freight classes tend to be cheaper, while higher classes may increase costs due to handling or risk.

In addition to class, LTL rates are influenced by:

  • Distance and route

  • Weight and dimensions

  • Accessorial charges (e.g., liftgate or inside delivery services)

  • Delivery zone or destination type (residential vs. commercial)

Understanding how your freight is classified—and how it moves through the network—can help you better manage costs and avoid unexpected surcharges.

 

Final Thoughts

LTL shipping plays a pivotal role in logistics by allowing companies to move smaller freight volumes efficiently, without the cost of booking an entire truck. It combines flexibility, affordability, and broad service coverage—all essential elements for today’s dynamic supply chains.

By knowing how LTL works, when to use it, and how to manage your freight classifications, shippers can take full advantage of one of the most powerful tools in modern transportation.