What Is LTL Freight?
Less Than Truckload (LTL) shipping is used when your cargo doesn't fill an entire trailer. Instead, the carrier consolidates freight from multiple shippers into a single truck, and each shipper pays only for the space their goods occupy. LTL is the backbone of domestic freight for small-to-mid-sized businesses.
How LTL Pricing Works
LTL rates are based on several variables:
- Freight class (NMFC): Classes range from 50 (dense, easy-to-handle items like bricks) to 500 (lightweight, bulky items like ping pong balls). Higher class = higher rate.
- Weight: Heavier shipments typically cost more, but rate-per-pound often decreases as weight increases.
- Distance (lane): The origin-to-destination corridor affects pricing significantly.
- Accessorial fees: Liftgate service, residential delivery, inside pickup, and fuel surcharges are added on top of the base rate.
What Is FTL Freight?
Full Truckload (FTL) shipping means you're booking an entire trailer for your cargo, regardless of whether you fill it completely. The truck goes directly from origin to destination without making stops at carrier terminals. This means faster transit times and lower risk of damage from handling.
When FTL Makes Sense
- Your shipment weighs more than roughly 10,000–15,000 lbs or fills more than half a trailer
- You need faster, more predictable delivery windows
- Your cargo is fragile or high-value and benefits from minimal handling
- You're shipping time-sensitive goods (e.g., perishables)
Side-by-Side Comparison
| Factor | LTL | FTL |
|---|---|---|
| Shipment size | 1–10 pallets (approx.) | 10+ pallets or full trailer |
| Cost | Pay for space used | Pay for entire truck |
| Transit time | Longer (multiple stops) | Faster (direct route) |
| Risk of damage | Higher (more handling) | Lower (fewer touchpoints) |
| Flexibility | High (consolidation options) | Lower (dedicated capacity) |
| Best for | Small-to-mid businesses | Large volume shippers |
The Break-Even Point: LTL vs. FTL Pricing
A general rule of thumb: once your LTL quote approaches 60–70% of an FTL rate for the same lane, it often makes financial and logistical sense to upgrade to a full truckload. Run both quotes simultaneously through a freight broker to make a data-driven decision.
Other Freight Types Worth Knowing
Beyond LTL and FTL, shippers should also be familiar with:
- Partial truckload (PTL): A middle ground — you get a dedicated truck but share with one or two other shippers.
- Intermodal: Combines truck and rail for long-haul moves, often more cost-effective for 1,000+ mile lanes.
- Expedited freight: Time-critical moves using dedicated trucks, air, or a combination.
Key Takeaways
- Choose LTL for smaller shipments where cost efficiency matters more than speed.
- Choose FTL when volume is high, cargo is fragile, or deadlines are tight.
- Always compare quotes before committing — rates vary widely by carrier and lane.
- Factor in accessorial fees when comparing LTL quotes; they can significantly change the final price.