Last Updated April 24, 2025
Choosing between LTL vs. FTL shipping can have a big impact on your budget, timelines, and customer satisfaction. Whether you’re moving a few pallets or a full truckload, knowing the difference between LTL and FTL helps ensure your products arrive safely and efficiently.
However, it can be difficult to choose which shipping method to move forward with. Learning more about the process of each option can help you make that decision.
In this guide, we’ll break down what LTL and FTL are, how they work, and when it makes the most sense to use one over the other.
What Are LTL and FTL Freight Shipping?
LTL and FTL are two different options for shipping goods on a freight trailer. Whether you’re managing a small shipment or a full trailer’s worth of goods, knowing what they are and how they work can help you choose the most cost-effective way to move your products from point A to point B.
What Is LTL?
Less than truckload (LTL) is a shipping option that allows you to pay only for the space you use on a freight trailer. Instead of paying for a full truckload, multiple shippers share space on the same truck, each paying only for the portion they use. It’s similar to carpooling, where you split the ride and costs with other businesses shipping goods in the same direction. This setup makes LTL a great option for companies looking to cut shipping costs without compromising reliability.
Most LTL shipments are smaller, weighing anywhere from 150 to 15,000 pounds. Instead of paying an exorbitant price for FTL and leaving a lot of empty space on the truck, LTL ensures trucks run full while giving shippers a deal on a pay-what-you-use model.
What Is FTL?
Full truckload (FTL) shipping is when a shipment from a single business takes up the entire freight trailer. The upside of FTL is that the trailer only contains your goods, allowing it to reach its destination with fewer stops. Since FTL requires less handling than LDL, there’s also a much lower risk of damage and loss. However, FTL is more expensive because it requires booking an entire truck. To make financial sense, you need a large shipment that’s well over 15,000 pounds.
How LTL and FTL Shipping Work
Understanding how LTL and FTL shipping work can help you choose the most efficient method for moving goods. Both options will get your products where they need to go, but the process differs depending on your shipment size, timeline, and budget.
How LTL Shipping Works
With LTL shipping, the carrier consolidates freight from multiple customers on a single truck. Each shipment occupies only a portion of the trailer, and businesses are charged based on the space their freight takes up, along with factors like weight, distance, and freight class. LTL shipments typically go through a hub-and-spoke network, stopping at various terminals for sorting and redistribution. While this can add some time to delivery, it also makes LTL rates more affordable for smaller shipments.
How FTL Shipping Works
FTL is much simpler than LTL. With this option, one shipper books the entire truck. That means the driver simply picks up the freight and delivers it directly to the destination—no need for transfers or additional terminals. This setup makes FTL much faster than LTL. Some shippers are happy to pay the extra cost for exclusive access to a truck, even if they don’t have enough products to fill the trailer. This shipping method also reduces handling, giving shippers more peace of mind that their goods will arrive on time and in good condition.
How LTL vs. FTL Rates Work
Shipping costs vary a lot. You don’t have control over factors like fuel surcharges or regional demand, but many other factors affect LTL vs FTL freight rates.
LTL Rates
LTL rate calculations are more complicated than FTL, looking at factors like:
- Shipment weight
- Freight class
- Dimensions and space used
- Distance
- Additional services
Because shippers only pay for what they use, everyone receives a different quote. You can calculate LTL shipping rates yourself, but it’s best to ask a carrier or broker for a quote. Some will give you a lower negotiated rate, especially if you have an established relationship with them.
FTL Rates
Although they’re more expensive, FTL rates are much easier to understand. With FTL, you pay a flat rate for the full use of the truck, regardless of how much space you use. Keep in mind that many factors can still affect FTL rates, including:
- Distance
- Fuel costs
- Seasonal demand
- Regional demand
FTL shipments are ideal for safety, predictability, and simplicity, but they come at a higher upfront cost. It’s best to choose this option only if you have large or high-volume shipments.
Differences Between LTL vs. FTL Freight
Choosing between the two depends on key factors like shipment size, delivery timelines, and your budget. Let’s recap some of the key differences between LTL vs. FTL freight so you can choose the best option for your shipment.
| LTL Freight Shipping | FTL Freight Shipping |
| Shared truck space with other shipments | Exclusive use of a freight trailer, regardless of space used |
| Small shipment size (150 to 15,000 pounds) | Large shipment size (15,000+ pounds) |
| Takes longer due to additional transfers | Faster, direct routes |
| More complex, personalized pricing at a lower rate | Flat-rate pricing at a higher rate |
| Higher likelihood of damage from increased handling | Lower risk of damage |
Shipment Size
LTL is best for shipments weighing 150 to under 15,000 pounds, while shipments over 15,000 pounds are a better fit for FTL.
This setup works because LTL shipments share space on a truck with other customers, while FTL gives you exclusive access to an entire trailer, regardless of how much space you use. However, FTL is expensive, so it’s best to fill the trailer as much as possible to maximize your return on investment.
Timeline
If you’re in a hurry, paying extra for FTL might be worth it. LTL is the more cost-effective option for smaller shipments, but it requires multiple stops and transfers because of the shared load. FTL, on the other hand, offers more direct routes to get your goods to their destination faster.
Price Structure
LTL rates consider many factors to determine costs, like freight class, weight, dimensions, and distance. Calculating this number yourself is difficult, making the process more confusing and less transparent. FTL rates fluctuate with the market, but their flat rate pricing is much easier to understand.
Damage
LTL operates on a hub-and-spoke model where shipments go through multiple transfers and terminals. Not only does this take longer, but the additional handling can increase the chances of damaged or lost goods. FTL doesn’t have this issue, so it’s better suited for sensitive or high-value items. If you want the cost benefits of LTL, make sure you carefully package and crate or palletize your shipment to minimize losses.
Considerations When Choosing LTL vs. FTL
There’s no clear “winner” between LTL vs. FTL. You have to choose the best option based on your business needs.
Here are a few key things to consider when comparing LTL vs FTL shipping:
- Shipment volume: LTL may be more cost-effective if you’re shipping a smaller load. Larger, high-volume loads typically require FTL.
- Budget: LTL and FTL rates differ significantly. Choose LTL for lower upfront costs or FTL if speed and reduced handling are worth the investment.
- Delivery speed: Need your freight delivered quickly and directly? FTL is likely the better option.
- Fragility and security: Fragile or high-value shipments are better protected with FTL, which involves less handling.
- Frequency of shipments: Regular small shipments may benefit from LTL, while larger, more occasional shipments are better for FTL.
- Carrier capabilities: Ensure your LTL and FTL truckload carriers can meet your service expectations, from tracking to delivery reliability.
By understanding your priorities, you can choose the best solution for your LTL and FTL shipment needs and optimize your freight strategy.
In-Summary: LTL vs. FTL
Whether you’re shipping a few pallets or a full trailer, understanding the difference between LTL and FTL is key to making smart, cost-effective logistics decisions.
Ultimately, it’s up to each shipper to determine which freight shipping option is best for their situation. When in doubt, contact multiple carriers, asking for quotes for both LTL and FTL. Not only will you receive pricing personalized to your route and freight, but you’ll also have a better understanding of how these methods affect your business.
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.
