What Is LTL Freight?

Last Updated April 24, 2025

Shipping freight can be complex and costly, but knowing how it works is a must for transporting goods from point A to point B efficiently.

Full truckload (FTL) shipping is great if you have a lot of products to ship, but what if you don’t always need a full truckload?

Less than truckload (LTL) shipping is a more budget-friendly option that maximizes empty space on freight trailers. However, it isn’t right for all situations and requires additional logistics to pull off. In this guide, you’ll learn what LTL stands for, the benefits of LTL shipping, and how to compare pricing for LTL vs. partial truckloads.

What Does LTL Stand For?

The LTL acronym “less than truckload” refers to any shipment that doesn’t need a whole truck. LTL shipping is utilized when you have relatively small freight that cargo shippers can combine with other shipments with the same destination. While FTL might be better for larger or more time-sensitive shipments, LTL delivery is perfect for smaller orders that don’t need a dedicated truck.

What Is LTL Freight?

LTL freight refers to any freight shipment that doesn’t take up an entire cargo trailer. Instead, LTL freight shippers combine shipments from different businesses into one trailer, each paying only for the space they use.

While LTL requires more logistical juggling than FTL, the pay-what-you-use model is a practical option for small to mid-sized businesses. It provides access to a shared transportation network while keeping costs more manageable than booking a full truckload.

However, LTL freight isn’t necessarily cheap. Coordination is complex, and carriers must still manage multiple pickups, drop-offs, and freight classes. A reputable LTL freight carrier helps manage the entire process from pickup to delivery, ensuring your goods are transported securely and efficiently—but you’ll pay for that convenience.

Still, LTL logistics provides a smart, scalable shipping method that works with dynamic supply chains. It’s all about sharing space, reducing costs, and getting your goods where they need to go—without overpaying for unused truck space.

How Does LTL Shipping Work?

When your business books an LTL freight pickup, the carrier collects the LTL cargo from your location. The carrier then takes your shipment to a local terminal to consolidate it with other LTL shipments heading in the same direction. This hub-and-spoke model routes goods through regional terminals until they reach the final delivery point.

Shippers split the total cost because multiple shipments share space on one truck. This shared cost model is why many businesses see the benefits of LTL shipping: it’s cost-effective, eco-friendly, and ideal for flexible delivery timelines.

Once the carrier loads the freight, they transport it through a network of terminals until it arrives at the receiver’s location. Throughout the journey, a reliable LTL freight carrier provides tracking updates and status reports so you can monitor the shipping progress in real time. When you receive the shipment, you sign the bill of lading (BOL) confirming that the goods arrived intact.

LTL Freight Requirements

If you’re considering LTL shipping, make sure you meet the basic LTL freight requirements so everything goes off without a hitch.

• Freight size: LTL shipments are usually 150 to 15,000 pounds and take up anywhere from one to six pallets. Anything smaller might be better suited for parcel shipping, while anything larger might require FTL or partial truckload shipping.
• Careful packaging: Carriers expect all LTL freight to be secured on standard pallets or in crates to prevent damage during transit. Clear labeling and accurate documentation are non-negotiable, not only for handling but also for calculating the right LTL freight class, which directly affects LTL freight rates.
• Proper classification: Misclassifying shipments can result in reclassification charges, delayed LTL delivery, or even denied pickup. Specify your dimensions, freight class, and special handling directions up front to ensure proper classification and billing.
• Freight class: The National Motor Freight Classification (NMFC) system assigns classes from 50 to 500 based on the item’s density, value, and handling characteristics. The higher the class, the higher the rate. A trusted LTL broker can help you find the correct classification and avoid costly errors.

How LTL Freight Rates Work

LTL freight rates aren’t just a simple flat fee. Shippers create personalized quotes for every LTL shipment based on your shipment’s unique requirements, not to mention the current going rate for shipping.

Factors That Determine LTL Shipping Rates

Several factors influence the total cost of your LTL delivery, including:

• Freight class: This classification is based on density, stowability, handling, and liability. The LTL freight class determines how difficult a shipment is to transport and how much space it occupies in the trailer. The higher the class, the more you pay.
• Weight and dimensions: Carriers use weight breaks to price freight. As the weight of your LTL cargo increases, the rate per hundred pounds (CWT) typically decreases. Dimensions also matter because large, bulky freight takes up more space, which means higher costs.
• Distance: The farther your shipment needs to go, the more it will cost to ship. Mileage between origin and destination is one of the core drivers of LTL freight rates, and it can vary significantly depending on region, zone, or even congestion levels on a route.
• Density: Density is the ratio of weight to volume. A dense, compact shipment will often have a lower LTL freight class, which results in lower pricing. Low-density shipments may cost more due to inefficient use of space in the truck.
• Special handling: If your shipment is fragile, hazardous, or unusually shaped, it may require special handling, which can increase costs.

How to Calculate LTL Freight Rates

If you’re planning to ship goods and want to stay within budget, knowing how to calculate LTL freight rates is essential. Follow these steps to estimate the cost of LTL freight:

1. Know your freight class: Start by determining your LTL freight class through the NMFC. Lower classes cost less to ship; higher classes are more expensive.

2. Weigh and measure your freight: Carriers bill LTL cargo by weight per hundred pounds.

3. Calculate freight density: Weight is important, but space also matters to carriers. Calculate freight density by dividing the weight (in pounds) by the volume (in cubic feet). The formula for this is: Density = Weight / (Length × Width × Height / 1,728).

4. Calculate distance: Carriers use freight zones and mileage to calculate charges. Short hauls cost less, while long-distance LTL shipping adds mileage fees.

5. Ask about accessorials: Do you need a liftgate, or are you shipping to a limited-access location? Extras like this will increase the total cost, so don’t forget to account for them in your LTL freight estimate.

Calculating LTL freight costs on your own can get complicated, but it’s good to know how to calculate them. Still, the easiest way to get a quote is to request one from an LTL freight carrier or broker. They might even be able to offer negotiated rates or discounts to bring down the total cost.

How to Reduce LTL Shipping Costs

LTL shipping can get expensive. Fortunately, there are several ways to bring down the total cost of shipping, such as:

• Improve packaging practices: Secure and stackable packaging can lower your LTL freight class by increasing density. Properly packed LTL cargo is also easier to carry and reduces the risk of damage.
• Consolidate shipments: Whenever possible, consolidate smaller shipments into a single LTL freight pickup. This reduces handling, minimizes LTL delivery fees, and may qualify you for better freight rates.
• Shop for the best rates: Never choose the first quote you receive; instead, always request at least three quotes before selecting a carrier. Partnering with an experienced LTL broker can also give you access to a network of carriers and negotiated rates.
• Be flexible: If you’re shipping on tight deadlines, you may incur expedited fees, so plan your LTL transportation strategically to keep costs down. Keep your pickup and delivery windows as flexible as possible to avoid these fees.
  

Pros and Cons of LTL Shipping

LTL shipping is an innovative solution that helps small businesses access shipping at a lower price while helping carriers fill empty cargo space. LTL shipping has many benefits, but it also has some drawbacks. Weigh the pros and cons of this freight shipping model to decide if it’s right for your business.

Pro No. 1: Cost-Effective

There’s no need to book an expensive full truckload for your small shipment. One of the benefits of LTL shipping is that you only pay for the space your LTL cargo occupies. This setup makes it ideal for small to mid-sized businesses that don’t ship in large quantities and need to watch their budgets.

Pro No. 2: Environmentally Friendly

Consumers are increasingly demanding eco-friendly business models, like carbon reduction. You can significantly reduce your carbon footprint with LTL transportation, which reduces the number of trucks on the road by consolidating multiple shipments into one trip.

Pro No. 3: Scalable

With LTL, you only pay for what you use. You don’t have to wait until you have a full truckload to ship, giving you much more flexibility. This option is excellent for companies with fluctuating shipment volumes, so whether you ship weekly or monthly, LTL freight is a scalable way to meet demand.

Con No. 1: Longer Timelines

LTL freight consolidates multiple shipments on one truck, which means making multiple trips and stops. That’s why LTL delivery can take much longer than FTL or partial truckloads.

Con No. 2: Increased Risk of Damage

The more carriers that handle your goods, the higher the risk of damage. Insurance policies can cover most damage, but proper packaging is also a must to mitigate the risk of damaged goods.

Con No. 3: Complex Pricing

Calculating the cost of LTL freight on your own can be very complex. There are so many variables to consider, making the pricing model both confusing and time-consuming to track yourself. It’s no wonder many businesses rely on carriers or brokers for up-to-date pricing information.

Comparing LTL With Other Shipping Options

There are other types of shipping, as well. Here’s a breakdown of how LTL differs from FTL and partial truckload:

LTL vs. FTL

LTL and FTL are the two most common freight shipping options. With LTL, multiple businesses share space on a single truck and only pay for what they use.

FTL stands for “full truckload,” where a single customer books an entire truck. Because FTL is more expensive, it’s better for larger shipments that can fill a whole trailer. However, some businesses also pay more for FTL even if they can’t fill an entire truck because this method is much faster than LTL.

LTL vs. Partial Truckload

It’s not as popular, but partial truckloads are a middle ground between LTL and FTL freight. This method is designed for larger shipments—usually over 5,000 pounds or more than six pallets—that don’t quite fill a full trailer but are too large for standard LTL freight. Unlike LTL, partial shipments have minimal handling and fewer stops.

Tips and Best Practices for LTL Shipments

Knowing how to reduce the price of LTL shipments is key to maintaining profitability, but following a few best practices can streamline the shipping process even more. If you’ve decided that LTL freight is best for your business, follow these tips:

• Plan for accessorials: Know in advance whether you’ll need services like liftgate delivery, limited access pickup, or inside delivery. These accessorial charges can affect your overall LTL freight rates. Communicating these needs early will help avoid delays and surprise costs.
• Watch your schedule: Schedule pickups early in the day and avoid peak times when possible. Carriers appreciate flexibility, and being proactive about scheduling can improve the LTL delivery experience.
• Communicate with your carrier: Use tracking tools provided by your LTL freight carrier or LTL broker to monitor your shipment’s progress. Clear communication with both the pickup and delivery locations ensures smoother coordination and fewer issues during transit.
• Don’t be afraid to change shipping models: You may not always need LTL shipping. If you consistently have larger loads, explore partial or full truckload shipping. You might save money and hassle by switching.

In-Summary: What Is LTL Freight?

Less-than-truckload shipping is great for businesses that don’t need an entire trailer to ship their goods. LTL is a smart, scalable alternative to full truckload shipping that allows multiple shippers to share a truck, with each paying only for the space they use.

While this shipping method is a great way to cut costs and be more eco-friendly, it has complex pricing structures and can take longer to move goods to their destination. So it’s important to take into consideration your type of freight before moving forward with an LTL shipment.

Still, for businesses with flexible timelines and a small amount of freight, LTL is a cost-saving option that optimizes logistics for small businesses.

LTL Shipping FAQs

Why is LTL freight so expensive?

LTL freight is usually cheaper than partial or full truckload shipping but can still be costly. That’s because LTL logistics require more handling, terminal stops, and space-sharing with other shippers. Multiple factors like freight class, accessorial fees, demand, and fuel costs also affect shipping costs. Fortunately, you can work directly with a carrier or a shipper to negotiate rates and get a better deal.

What are the rules for LTL freight claims?

Carriers require a lot of documentation to accept a claim for loss or damage. You typically need to submit this within nine months of the delivery date, along with:

• The bill of lading
• The invoice
• Photos of the damage
• A description of the loss or damage

If possible, note the damage upon receiving the goods on the bill of lading. Signing the BOL means you accept the package in good condition, which can make it much harder to file a claim successfully.

What is the LTL tariff rule?

The LTL tariff rule is a document issued by an LTL freight carrier that outlines pricing, service terms, rules, and accessorial charges. This legally binding contract governs your LTL freight shipment, defining how rates are applied, how shipments are classified, and the conditions for pickups, deliveries, and claims.

What determines LTL freight class?

A lot of factors determine freight class, including:

• Shipment density
• Stowability
• Handling
• Liability

Do LTL shipments have to be on a pallet?

It’s not usually required, but it’s very much recommended as carriers expect to receive your goods on a pallet or crate to pallet. Palletizing prevents damage and improves handling. Some carriers will charge extra for non-palletized freight, so taking the time to pallet your shipment could reduce costs.

Michael McCareins

Michael McCareins is the Content Marketing Associate at altLINE, where he is dedicated to creating and managing optimal content for readers. Following a brief career in media relations, Michael has discovered a passion for content marketing through developing unique, informative content to help audiences better understand ideas and topics such as invoice factoring and A/R financing.