Truck transportation is essential for moving commercial goods across North America, requiring shippers to choose the correct freight mode based on efficiency and cost. Selecting between a dedicated trailer or sharing space dictates the logistics chain, impacting transit speed and price. Understanding Full Truckload (FTL) and Less Than Truckload (LTL) is foundational to effective supply chain management.
Defining Less Than Truckload and Full Truckload
Full Truckload (FTL) service involves reserving the exclusive use of an entire semi-trailer for a single shipment. The shipper pays for the dedicated capacity and direct movement from origin to destination, even if the cargo does not physically fill the trailer. FTL is typically used when a shipment weighs 15,000 pounds or more, or requires 10 or more standard pallets of space.
Less Than Truckload (LTL) shipping is designed for smaller volumes of freight that do not require the entire capacity of a 53-foot trailer. LTL carriers consolidate multiple smaller shipments from various businesses onto a single truck to maximize efficiency. This method allows companies to ship smaller quantities of goods, often between 150 and 10,000 pounds, by paying only for the linear space their cargo occupies.
Key Operational Differences in Shipping
The pathways a shipment takes differ significantly between the two freight modes, influencing transit time and the risk of product damage. FTL shipments move directly from the shipper’s dock to the consignee’s location without intermediate stops or transfers. This dedicated route means the cargo remains untouched from loading until delivery.
This continuous movement minimizes transit time and lowers the potential for freight damage, as the cargo is handled only twice: loading and unloading. FTL delivery is generally scheduled as a single-day event over shorter distances, providing a predictable delivery window.
LTL shipping follows a hub-and-spoke network that requires multiple transfers before reaching the final destination. After pickup, the freight moves to a local consolidation terminal, where it is unloaded, sorted, and reloaded onto a linehaul trailer. This sorting and re-sorting process can occur several times, introducing delays and increasing the overall transit time compared to FTL.
The probability of damage increases every time an LTL shipment is handled at a terminal due to repeated contact and exposure to other consolidated freight. Therefore, LTL shipments must be robustly packaged to withstand the constant vibration of transit and the mechanical stresses of multiple loadings and unloadings.
Understanding the Cost Structures
The methods used to calculate transportation expenses vary, reflecting the difference between purchasing exclusive use of an asset and purchasing shared space. FTL pricing is straightforward, typically based on a flat rate for a specific lane or a per-mile charge covering driver, fuel, and equipment costs. Because the shipper pays for the entire truck, the cargo’s weight or commodity type has less influence on the base rate than the distance traveled and market capacity.
LTL pricing employs a structure designed to allocate shared costs among multiple shippers. The primary determinant for an LTL rate is the freight class assigned to the commodity, governed by the National Motor Freight Classification (NMFC) system. The NMFC assigns one of 18 classes, ranging from Class 50 (dense, low-value items) to Class 500 (low-density, high-value items). Classification is based on four characteristics: density, stowability, handling, and liability.
Density, calculated as the weight of the item divided by its cubic feet, is the most influential factor in determining the freight class. A lower density product occupies more space relative to its weight, resulting in a higher freight class and a higher rate per pound. Carriers use this classification system with the shipment’s weight and distance traveled to determine the final tariff rate.
Additional fees, known as accessorial charges, are common in LTL shipping and cover services outside of standard dock-to-dock delivery. These charges might include liftgate service, residential delivery, appointment scheduling, or the handling of hazardous materials.
Choosing the Right Method for Your Shipment
Selecting between FTL and LTL hinges on analyzing the cargo’s physical characteristics and the required service level. A shipment’s size is often the initial deciding factor. Freight requiring 10 or more standard pallets or weighing over 10,000 pounds typically becomes more cost-effective via FTL, as LTL shared-space savings diminish rapidly when cargo takes up a significant portion of the trailer.
Time sensitivity indicates the need for a dedicated truck, as FTL’s direct routing provides faster transit time compared to the multiple transfers inherent in LTL. Businesses with tight production schedules or just-in-time inventory requirements benefit from the predictability of a dedicated trailer.
For fragile, high-value, or contamination-susceptible products, FTL is the preferred method because it limits handling risk. Isolating the shipment in its own trailer, away from consolidated goods and repeated terminal actions, provides protection.
Preparing and Booking Your Freight
Once the appropriate shipping method is selected, execution requires attention to documentation and scheduling. Proper packaging is paramount for all freight, especially LTL cargo, which must be secured to withstand the rigors of terminal handling and vibration.
A Bill of Lading (BOL) is the foundational legal document for both modes, detailing the freight’s description, weight, and destination. For LTL shipments, accurately identifying the NMFC code and freight class on the BOL is paramount, as misclassification can lead to costly reweighing and reclassification fees. Booking FTL typically requires more advance notice for securing dedicated equipment, while LTL carriers offer flexible daily pickup schedules.