LTL Freight Services

For LTL shipping, carriers consolidate freight from multiple shippers into a single truck. The amount of space required by each shipper can vary.

Unlike FTL shipping, where goods travel directly from pick-up to destination, LTL shipments make multiple stops. Drivers stop multiple times to collect other shipments and make deliveries.

Shipments are also often transferred between trucks at distribution hubs, switching between drivers until they arrive at their final destination. Multiple stops along the way can lead to longer delivery times than FTL shipping but with the cost-savings of not paying for an entire truck.

The typical LTL shipment size is 150 to 15,000 pounds or 1 to 6 pallets. Shipments smaller than 150 pounds usually qualify for parcel shipping (e.g through FedEx and UPS), which may be a more affordable and convenient option.

Pros and cons of LTL shipping

Just like other shipping methods, LTL shipping has some advantages and disadvantages:

Pros

• Lower costs: LTL is a cost-effective solution for smaller shipments. If you operate a small business, you may only need to transport small quantities of goods occasionally. LTL lets you share truck space with similar companies to keep costs down instead of paying more for a full truck.
• Lower environmental impact: LTL maximizes truck space to reduce environmental impact. Fewer delivery trucks on the road means less carbon emissions, so consolidating multiple shipments into a single truck helps improve your business’s sustainability efforts.
• Flexible service: With LTL, you can enjoy flexible and frequent service options. Carriers provide a wide range of solutions catering to businesses shipping in small volumes, making it easier to find the ideal transportation option for your business operations, delivery needs, and budget.
• Safer than parcel shipping: Goods sent via LTL shipping should be safer than with a parcel-transportation service. While parcels are typically loose in the back of a truck, LTL shipments are stacked and shrink-wrapped on pallets to remain stable in transit. The extra packaging can give you valuable peace of mind that your shipment will arrive in good condition.

Cons

• Slower transit times: Transit times are generally longer with LTL than FTL shipping, making it less than ideal for urgent deliveries. The time taken to make other stops, unload goods, and drive to the next destination can be significant (especially on cross-country journeys).
• More Likely to Experience Freight Damage: While LTL may be more secure than a parcel-delivery service, it carries a higher risk of damage than FTL due to the extra handling involved. Drivers make multiple stops, different workers typically enter trucks when they arrive, and loads may be transferred to other vehicles, increasing the opportunities for damage.
• Complex rate system: The pricing structure for LTL shipping can be complicated, especially when you add in accessorial charges. Complex LTL rates can make planning and organizing deliveries more difficult, especially if you’re new to freight shipping.

LTL transportation rates are based on freight class, a standardized industry pricing system. National Motor Freight Classification (NMFC) codes determine freight class and associated rates. Freight class is based on the density, stowability, handling, and liability of a shipment.

• Density: Freight density (the weight-to-volume ratio) is critical. Shipments with a high density have a lower freight class, and those with a lower density have a higher freight class. Density is calculated by dividing the freight’s total weight by the total cubic feet.
• Stowability: Some shipments are awkward to position and take up more space in a truck. Others offer more flexibility and allow teams to maximize space when loading them onto the vehicle. Pallets that are more complicated to position are typically assigned a higher freight class.
• Handling: The more special handling a shipment requires along the way, the higher its freight class will be. Fragile goods with delicate packaging will need to be treated with more care than sturdy freight.
• Liability: Goods that are perishable, easy to damage, or could potentially damage other shipments in a truck bring more liability. As a result, they will be given a higher freight class.

Other factors can determine the cost of LTL shipping. For example, the distance traveled and fuel surcharges may increase the price.

Carriers add accessorial charges to LTL rates to cover services beyond the standard pickup and delivery of shipments. Adding accessorial charges to their shipping rates can help carriers recoup any losses that might arise from unexpected delays.

Accessorial charges are more common in LTL than FTL transportation because LTL involves multiple deliveries, increasing potential delays along the route. Because FTL shipping transports goods for just one shipper, delays are less likely (though still possible).

Common LTL accessorial charges include:

• Liftgate service: Sending goods to a delivery location with no loading dock.
• Inside delivery: Carrying freight into a building instead of leaving it at an external site.
• Residential delivery: Delivering to non-commercial locations.
• Limited access location: Delivering to sites with limited access, such as a school or construction site.
• Reweigh and reclassification: When shipment weight or class doesn’t match what was stated originally.
• Advance notification: When a driver is asked to notify a recipient before they arrive, any difficulties contacting them can lead to delays.
• Detention: Carriers allow a specific amount of time to complete deliveries. If this period needs to be extended for any reason, a truck cannot leave on time, affecting subsequent deliveries and pickups.

There are two main types of LTL service: guaranteed and non-guaranteed (or regular). Each option has its own benefits.

Guaranteed LTL service

Guaranteed LTL shipping ensures that a shipment will reach its destination by a fixed date and time. That’s a major advantage if a client wants to know exactly when they’ll receive a delivery and you want to provide them with a smooth experience.

Goods are usually guaranteed to arrive by 5 pm or noon on the specified date. Guaranteed LTL shipping provides more stability and certainty than you’ll have with an estimated delivery window. If anything goes wrong and the shipment fails to arrive as stated, the carrier should provide compensation.

However, guaranteed shipping is more expensive than regular LTL service. The higher cost may be worth it to impress a new client or keep existing ones happy.

Here are the three main points to keep in mind with guaranteed LTL:

• Ensures delivery by a specific date and time
• Ideal for time-sensitive shipments
• Typically more expensive than the non-guaranteed service

Regular service

The non-guaranteed option is less predictable and allows room for delays. A carrier will give you an estimate of the arrival time, but there’s no certainty. Clients may need to wait one or more days longer than they expect, though there’s still a chance the delivery will be on time. Due to this uncertainty in delivery time, non-guaranteed LTL shipping is less expensive.

Here are the three main points to consider with regular LTL service:

• Standard LTL service has flexible delivery times
• Lower cost but no guarantee of an exact delivery date
• Suitable for non-urgent shipments

When you choose a carrier to transport freight on your behalf, you want to feel reassured that your freight will be in good hands every step of the way. However, even well-respected carriers experience issues from time to time. Shipments may arrive damaged or go missing altogether.

Fortunately, LTL shipping carriers generally provide basic liability coverage for goods in their possession. This covers damage or loss that may occur while in transit.

However, liability limits are often based on a shipment’s weight and freight class. Goods of a higher class usually require higher coverage.

However, carrier liability coverage isn’t the same as full cargo insurance: you may need additional insurance when sending high-value shipments. Though cargo insurance adds additional expenses to your shipments, it should still be more affordable than paying for replacement freight and subsequent deliveries out of pocket if something goes wrong.

Carrier liability coverage typically ranges from $0.50 to $25 per pound, though it depends on the carrier and shipment details. It’s important to discuss carrier liability with a carrier and verify the specific coverage terms to avoid surprises if you need to file a claim. Make sure you check liability coverage when comparing carriers to find the best deal for your budget and goals.