Ground transportation logistics relies on classifying freight to ensure efficiency and control costs. The two foundational methods for shipping goods are Full Truckload (FTL) and Less Than Truckload (LTL). Understanding the differences between these operational models is fundamental for businesses optimizing their supply chain. The choice between a dedicated trailer and a shared space directly impacts the speed, security, and pricing of a shipment.
Defining Full Truckload (FTL) Shipping
Full Truckload (FTL) shipping refers to a single shipper reserving the entire capacity of a semi-trailer for their freight. The truck is dedicated solely to that customer’s goods, regardless of whether the trailer is completely full. The main benefit of FTL is direct, point-to-point transit, meaning the vehicle travels straight from the origin to the destination without intermediate stops. This service is faster and more predictable because the shipment avoids delays from consolidating other cargo.
Once the freight is loaded, the doors are often sealed and remain closed until arrival. This minimal handling significantly reduces the risk of damage, loss, or misrouting during transit. FTL is the preferred method for shipments that occupy 10 or more pallets, weigh over 20,000 pounds, or contain high-value cargo. Although the upfront cost is higher than shared-space options, FTL offers enhanced security and greater control over scheduling.
Defining Less Than Truckload (LTL) Shipping
Less Than Truckload (LTL) shipping is designed for smaller freight volumes that do not require a full trailer. Multiple shippers share space on a single truck, paying only for the portion their goods occupy. LTL shipments generally range from 150 to 15,000 pounds and consist of one to ten standard pallets. This shared capacity allows businesses to access freight services without paying for unused space.
The logistics of LTL shipping rely on the hub-and-spoke model. After pickup, the freight is transported to a central terminal, or hub, where it is consolidated with other shipments traveling in the same direction. At the hub, shipments are sorted, cross-docked, and reloaded onto different trailers for the next leg of the journey. This sorting and reloading process may occur multiple times, maximizing trailer utilization across the carrier’s network before final delivery.
Key Differences Between FTL and LTL
The operational distinction between FTL and LTL creates differences in pricing, speed, and security. FTL pricing is structured as a flat rate for the dedicated truck, often quoted per mile or as a fixed cost for the lane, resulting in a predictable total charge. LTL pricing is more intricate, relying on factors including the shipment’s weight, distance, and assigned freight classification.
LTL shipments are subject to frequent handling as they move through terminals for sorting and consolidation. This constant loading and unloading increases the risk of damage or misplacement. FTL offers a security advantage because the cargo is only handled twice—at the origin and destination—remaining sealed on the same truck throughout transit. Transit time also differs significantly; FTL offers faster, direct service, while LTL involves longer delivery windows due to multiple stops and terminal transfers.
Factors Influencing the Shipping Decision
The decision between FTL and LTL is guided by the shipment’s physical characteristics and logistical priorities. The immediate determinant is size and weight; a load exceeding 12 pallets or 20,000 pounds often makes FTL the more sensible option. Shipments requiring high speed, such as those with firm deadlines, are best suited for FTL due to its direct routing. FTL is also beneficial for high-value or fragile goods where minimizing damage is a primary concern.
For LTL shipping, cost calculation is heavily influenced by the freight’s density and classification. All LTL commodities are categorized into one of 18 freight classes, ranging from Class 50 (highly dense) to Class 500 (low-density or fragile). This classification is determined by four characteristics:
- Density
- Stowability
- Handling
- Liability
A lower density results in a higher freight class and a more expensive rate, requiring shippers to optimize packaging and weight for cost savings.
Specialized Variations in Trucking
The division between LTL and FTL has blurred with specialized variations designed for shipments that fall into the middle ground. Partial Truckload (PTL) and Volume LTL are options for freight too large for standard LTL but not large enough to warrant a dedicated FTL trailer.
Volume LTL
Volume LTL is an LTL service for larger shipments, typically between six and twelve pallets. It uses the standard LTL network but is priced using a special rate structure. This option still involves multiple stops and terminal handling, similar to traditional LTL.
Partial Truckload (PTL)
PTL is used for larger loads, sometimes up to 18 pallets, utilizing available space on an FTL carrier’s truck. PTL shipments generally bypass the LTL carrier’s hub-and-spoke terminals. This leads to less handling and faster transit times. These specialized services offer a flexible solution, balancing the cost savings of shared space with the improved speed and security of reduced transfers.