What Is LTL in Freight and How Can It Help Your Business?

Defining LTL Freight

Less Than Truckload (LTL) freight is a shipping option for loads that don’t require the use of an entire truck. Instead of paying for full trailer space, businesses only pay for the portion they need. Carriers combine shipments from multiple companies into a single truck, maximizing space and efficiency.

LTL is commonly used for palletized freight weighing between 150 and 15,000 pounds. It bridges the gap between parcel shipping and full truckload (FTL) shipping, giving businesses a cost-effective option for mid-sized loads.

How the LTL Process Works

When an LTL shipment is booked, the carrier picks it up and consolidates it with freight from other shippers. These shipments often move through a network of regional and local terminals before reaching their final destinations.

Because multiple stops are involved, shipments may be transferred between trucks along the way. While this adds handling, it also reduces the overall cost by spreading expenses across several customers instead of one.

Benefits of LTL Freight

The main reason companies use LTL is cost savings. Paying only for the space used is far more economical than reserving an entire truck for a partial load.

Other advantages include:

  • Flexibility: Businesses can move freight without waiting to build a full truckload.

  • Accessibility: Services like liftgate delivery and inside pickup make LTL adaptable for businesses without loading docks.

  • Visibility: Many carriers provide shipment tracking through each terminal, offering more detailed updates than traditional truckload shipping.

When LTL Is the Right Choice

LTL works best for companies with frequent but smaller shipments. Retailers replenishing store inventory, manufacturers sending components, and distributors moving partial pallets often rely on it.

However, businesses shipping fragile or highly time-sensitive goods may want to evaluate whether the extra handling and terminal stops in LTL align with their requirements. In some cases, the direct route of a full truckload may be more suitable.

The Role of LTL in Business Operations

For businesses looking to ship consistently without overcommitting resources, LTL provides a practical balance. It allows companies to move goods regularly, keep supply chains flowing, and reach markets that might not justify a full truckload.

By scaling with demand, LTL gives businesses a way to manage transportation costs while staying responsive to customers and partners.