When your cargo is too big or heavy for small parcel service but not quite large enough to justify FTL service, LTL freight service will be your right-sized solution.
Less-than-truckload (LTL) service offers business owners a cost-effective method for moving cargo in which they only pay for the space they need. Each shipment essentially “shares space” with other cargo headed for similar destinations, as opposed to FTL shipments, which get their own dedicated trailer.
To help you make the most of your next (or your first!) LTL freight shipment, check out our tips below. We’ll help you increase your efficiencies and minimize your costs to optimize your next LTL shipment—and get the most bang for your transportation buck.
First, let’s start with the basics of LTL freight: What is it? How does LTL compare to FTL? And what are the pros and cons of LTL freight?
Understanding LTL Freight: Definitions, Pros, and Cons
What Does LTL Mean in Shipping?
LTL stands for Less-Than-truckLoad. It refers to a cargo shipment that “carpools” with other cargo shipments along the way to its final destination. Trucks carrying LTL freight make multiple stops to pick up and drop off freight along their routes.
What Is the Difference Between LTL and FTL?
The other option for over-the-road freight service is called FTL—Full TruckLoad service. When you book FTL service, you get an entire trailer dedicated to your use. The only stops the truck will make will be for you.
In contrast, when you choose LTL service, your shipment will share the trailer with other shippers’ cargo, and the driver will make multiple stops to deliver that cargo.
To learn more about the differences between FTL and LTL, check out our comprehensive guide to FTL vs. LTL.
What Are the Pros of LTL Freight Shipping?
- Price: On an absolute basis, LTL freight shipping is cheaper than FTL shipping.
- Adaptability: Rather than having to commit to a full trailer, LTL service offers you the flexibility to simply pay for the space you need. If your freight volume shifts frequently, LTL service will be a great choice for you.
- Environmental Footprint: Because LTL freight “carpools” with other cargo, it offers a lighter environmental footprint than moving that same freight FTL.
What Are the Cons of LTL Freight Shipping?
- Price: LTL service can cost you more per unit than FTL service, which delivers economies of scale.
- Timing: Since the truck carrying LTL freight makes multiple stops, LTL timelines can be longer and slightly unpredictable.
- Damage Risk: During an LTL route, cargo may be loaded and unloaded around yours, which a greater possibility for damage. For maximum security and minimal handling, choose FTL service.
Next, we’ll share a few tips to help you get the most out of your LTL freight shipments, while minimizing your costs.
LTL Freight Tip #1: Packaging Is Paramount
One of the cons of LTL freight is the fact that it’s often subject to more handling than FTL freight. There’s also a slightly higher risk of damage, since items will be loaded and unloaded around your cargo.
Your best protection against this risk is proper packaging. Where possible, we suggest palletizing your goods. Palletized goods can be loaded and unloaded with a forklift, which reduces manual handling.
Additionally, reviewing best practices for palletized freight will help you manage further risk to your cargo. To sum it up, make sure to:
- Avoid pallet overhang
- Use corner boards (also known as “edge protectors”) to reinforce heavy loads
- Secure the load properly to the pallet to avoid shifting during transit
For certain loads, crating can be a better option. This is especially true for items like small machinery, which can benefit from the extra protection of a crate. Additionally, crating a small machine can make your shipment stackable, which can reduce your cost.
LTL Freight Tip #2: Measurements Matter, as Does Freight Class
When you book an LTL freight shipment, you’ll need to enter the shipment’s exact dimensions—length, width, and height—as well as its weight. All of this plays into the shipment’s freight class, which will impact the pricing for your LTL shipment.
Freight class reflects an item’s “transportability”—how hard or easy it will be for the carrier to move it.
Transportability boils down to four elements:
- Density: How dense is the shipment? In other words, what’s its weight as compared to its volume? (That’s where those dimensions come into play!)
- Stowability: What is the size and shape of the shipment?
- Ease of Handling: What kind of care is needed to move the shipment?
- Liability: How valuable is the shipment, and how vulnerable is it to perishability, theft, or damage?
On the basis of these factors, every commodity is assigned to one the standard 18 freight classes, which will impact its shipping cost.
If you’re new to LTL shipping, picking the right freight class can be challenging. If you know your shipment’s National Motor Freight Classification (NMFC) code, you can match that code with a freight class. If you’re using a freight broker or freight forwarder, they can help you determine your freight class.
All of this is to say: Several elements of your quote hinge on accurate freight measurements. If you fudge any of the numbers, you risk delays as well as a recalculation of your quote, both of which can throw a wrench in your logistics.
LTL Freight Tip #3: Know When It’s Time to Move to FTL Service
On an absolute basis, LTL freight shipping can be cheaper than FTL freight shipping. For example, if you’ve only got two pallets of freight to move, your LTL quote will come in much lower than an FTL quote for those same two pallets.
However, there’s also a tipping point at which it makes sense to consider FTL. After all, FTL offers economies of scale. Think about it this way: If you choose FTL for a trailer full of auto parts, your cost per unit will be lower than sending two pallets of those same auto parts LTL.
Once you start regularly shipping six or more pallets, ask your freight broker or freight forwarder to quote out both LTL and FTL service so you can see the cost difference. At a certain point, it just makes more financial sense to choose FTL service. As a bonus, you’ll get to reap the extra benefits of FTL service: greater security, minimal handling, and a faster, more dependable timeline.
LTL Freight Tip #4: Consider Working with a Freight Broker
Working with a freight broker to ship your LTL freight offers a few key advantages, including more flexibility, more competitive pricing, and greater ease.
When you establish a good working relationship with a freight broker, you can expect:
Access to a Vetted Carrier Network
Freight brokers pride themselves on establishing solid relationships with reliable carriers. Working with a broker can save you the trouble of vetting carriers on your own. Instead, when you work with a freight broker, you’ll get instant access to their network of trusted carriers.
Multiple Quotes from One Point of Contact
You could call around from carrier to carrier to gather quotes, repeating the specs for your LTL shipment each time. Or, you could make a single call to a freight broker. Your broker will then reach out to their carrier partners, locate those with capacity for your load, and gather quotes. It’s easy to see how this could save you a ton of time—while giving you a good sense of the going price for your freight shipment.
Flexibility for Changing Freight Needs
If your freight needs change, a freight broker will offer you significantly more flexibility than going direct to a carrier. If, for example, you need additional capacity for your busy season, your broker can leverage their network to locate a carrier who can assist.
More Competitive Pricing
In some niches, you can save money by going direct to the companies you’re working with. For many LTL shipments, the opposite is usually true:
- Because they can quote your shipment with multiple carriers, a freight broker can quickly and easily find the best price for your shipment.
- Additionally, some brokers have access to negotiated rates with certain carriers, due to sending them a large volume of business. These rates are often better than what you’d see by going direct to the carrier.
Solid Communications
The best freight brokers take their role as intermediary between shippers and carriers seriously. Expect a solid freight broker to keep you updated regularly. They can also excel at coming up with solutions in the face of challenges, with the goal of establishing a regular partnership with the shippers they work with.
Insights and Answers
Finally, remember that freight brokers have a specific expertise in LTL shipping—an expertise you can leverage to optimize your shipments, estimate costs and schedules, and more. When it comes to LTL freight shipping, having an expert by your side can be absolutely invaluable.
In short, there are plenty of solid reasons to consider working with a freight broker when moving LTL freight. If you establish a partnership with a broker you trust, it can make your logistics smoother, simpler, and more cost-effective.
LTL Freight Tip #5: Avoid Unexpected Charges
Nothing disrupts your freight budget faster than unexpected charges. That’s why it’s so important to be aware of potential accessorial charges.
In some cases, you may be perfectly willing to pay for an accessorial charge. If, for example, an inside delivery would add significant ease to your operations, that’s a perfect reason to upgrade from standard curbside delivery.
Accessorial charges really only become a problem when you haven’t anticipated them—or you could have avoided them. To help you keep your LTL freight costs down, let’s cover two common ones that trip up new shippers:
#1: Freight Reclassifications
As we mentioned above, if you haven’t accurately measured or described your freight, you might end up with the wrong freight class for the commodity you’re shipping. The carrier moving your LTL shipment will usually check the freight class of each shipment. If yours is incorrect, your price will be adjusted accordingly, and the cost for reclassification will be added to your invoice.
To avoid a freight reclassification charge, talk to your freight broker or freight forwarder when you’re quoting out your shipment. It can’t hurt to double-check that you’ve got the right freight class for your shipment!
#2: Liftgate Service
Standard freight deliveries are generally made to a loading dock, which sits 48-50 inches off the ground. However, if your freight is arriving at a location without a loading dock, the carrier will need to use truck with a liftgate to lower it to the ground. If your freight requires liftgate service, you’ll see an accessorial charge on your invoice.
However, that’s better than the alternative: If you don’t specify the need for liftgate service—and there’s no loading dock at the destination—your driver may not be able to deliver the freight. This might result in additional redelivery fees.
To avoid unexpected liftgate/redelivery charges, make sure to discuss whether you’ll need liftgate service—up front.
LTL Freight Tip #6: Know Your Insurance Options
Whenever you’re shipping freight, there’s always a slight possibility of damage—or complete cargo loss. To protect yourself against the financial hit of these losses, consider insuring your LTL freight shipments.
Carriers do offer limited liability coverage for LTL freight shipments. However, this protection often comes with several caveats:
- To be covered, the damage or loss must be due to carrier negligence, and it also must be proven that the damage occurred while the freight was in the carrier’s possession. (For example, consider what happens if the carrier successfully argues that the freight was already damaged when they took possession.)
- Additionally, a carrier’s financial liability for LTL freight shipments varies by freight class, with coverage ranging from $1-$25 per pound.
If you’re looking for more complete coverage, talk to your freight broker or freight forwarder about full-value cargo insurance. It’s the best way to protect your investment in transit.
Optimizing Your LTL Freight Shipments
Now that you know the basics of LTL freight, your next step will be to optimize your cargo shipments. With the help of your freight broker or freight forwarder, look for ways to increase your efficiencies and streamline your operations to save you both time and money.
Want some help optimizing your next LTL shipment? Talk to our expert team. We can connect you with the freight solutions that keep your business moving forward, including FTL, LTL, FCL, and LCL solutions. Reach out today for a complimentary quote.
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