What Is Less Than Truckload Shipping?

Businesses with relatively small freight transportation requirements have a big choice to make when considering their logistics. They could wait until they have enough inventory to fill a truck, but that can lead to all sorts of consequences, ranging from lost sales if inventory runs out to substandard shipping times that can damage their reputation. However, less than truckload shipping offers another option, affording business owners flexibility and cost-effectiveness when working with smaller shipments.

LTL shipping involves shipping less than a full truckload of freight and sharing that truck space with other shipments. Because each shipper pays their part proportionate to the size of the load, it's an ideal way to save money on transportation costs when you don't need a full truckload. 

Despite appealing primarily to smaller shippers, such as small businesses, LTL can help companies of all sizes streamline their transportation. Learning about the best shipping options and understanding when to opt for LTL over FTL shipping can help optimize your logistics and save costs.

What Is Less Than Truckload (LTL) Shipping?

Less than truckload shipping means your shipment doesn't completely fill a freight truck, allowing multiple shippers to share space on a single truck. By combining partial loads onto one truck and opting for a multi-stop delivery route, LTL providers offer a way to ship items that reduces the overall cost while accommodating a range of shipment sizes. Shipping costs typically factor in the space used, the types of items being shipped and pickup and destination locations.

Typically, LTL shipments weigh between 150 and 15,000 pounds, making them inefficient for parcel shipping but too small to warrant the cost of a truck. LTL shipping provides a workaround to this problem, accommodating smaller batches more frequently.

Instead of waiting for enough inventory to build up to justify the cost of a truck, many businesses turn to LTL shipping to reduce the risk of lost sales caused by a lack of inventory. National parcel services and third-party logistics providers offer these services, letting businesses benefit from the economy of scale. By shipping several businesses' goods together in a truck, all parties share the cost of transportation, resulting in reduced costs for all compared to shipping a full truckload.

LTL vs. FTL: Key Differences

Both LTL and FTL shipping have their places in the supply chain. LTL shipments involve packing multiple shipments into one truck, resulting in numerous stops. An FTL shipment isn't typically shared. Deciding whether you want truckload vs. truckload shipping depends on several factors, including:

• Shipment size: FTL is generally used for shipments exceeding 15,000 pounds or more than 10 pallets, while LTL handles smaller shipments. FTL is best if you have enough freight to fill an entire truck. LTL only makes sense when shipping smaller amounts.
• Fragility: Fragile cargo may benefit from FTL shipping, even without a full load. FTL shipping often involves fewer stops, minimizing how much the cargo is handled and reducing the risk of damage or theft. Shipping with LTL means your cargo shares a trailer with other shipments and is handled and moved around more frequently. More movement and handling can increase the likelihood of human error, leading to damage.
• Speed: FTL is typically the fastest way to ship things from point A to point B. LTL introduces a longer delivery timeline due to additional stops and loading or unloading. If speed matters more than cost, FTL is the way to go. However, if you have enough leeway to add days to the delivery speed, LTL is an effective way to reduce costs.
• Partial loads vs. volume shipping: Volume shipping involves LTL shipping more than six pallets weighing between 8,000 and 10,000 pounds. In contrast, partial truckloads involve eight to 18 pallets weighing between 8,000 and 27,500 pounds being shipped. A key difference is that partial truckloads still share space with other cargo but tend to arrive quicker than LTL freight.
• Security: Due to the frequency of handling, FTL shipments are typically more secure than LTL. FTL shipments go straight to their delivery location, cutting out additional stops and unnecessary handling that could lead to mistakes, damage or loss of inventory. High-value inventory that requires extra security may warrant opting for FTL, even with higher costs. 
• Special service requirements: LTL freight can include additional services, such as white-glove deliveries, freeze protection and lift gate services. FTL service options tend to be much more basic.

LTL shipping can be useful in some cases, especially for small businesses and e-commerce. Small businesses can benefit from smaller shipment requirements and reduced transportation costs while gaining access to professional shipping services. You don't need to worry about paying higher costs for unused space with an FTL shipment. 

LTL freight also benefits e-commerce. For example, LTL freight shipping reduces delivery times by eliminating the need to wait until an entire shipment is ready to go. LTL freight shipping allows for inventory to be moved in smaller batches, meaning it gets to the consumer quicker than if the business had to wait until it had enough to fill a truck.

However, when comparing the time taken to get from the initial shipping point to the final destination, FTL is still quicker, as it's typically a direct route. Investing in FTL may be worth the cost for shipments that require rapid delivery, even if you don't maximize the usable space.

How LTL Shipping Works

Every LTL shipment looks slightly different, depending on the origin point, destination, weight, special handling requirements and more. However, they generally follow the same process.

The first step is to package and prepare your freight for shipment. This is particularly important because your overall cost depends on the weight and the dimensions of your freight. 

It's also crucial to invest in secure packaging to protect fragile objects from bumping or tumbling on the road. Because LTL shipping often involves goods loaded and unloaded several times across their journey, your freight should be sufficiently secured in advance. Crates and pallets can help keep goods together and more secure.

Once you know how much freight has to be moved, it's time to book a shipment. Get a quote based on your needs from an LTL provider. Pricing for LTL shipping depends on size, the distance the freight must travel and seasonal availability. During peak shipping season, there's more need for shipments, leading to fewer available trucks to provide LTL services. For the most accurate pricing, be sure you have the following information on hand before requesting your quote:

• Total product weight (including packaging, pallets and crates)
• Dimensions
• Pallet count
• A description of what you're shipping
• Any necessary requirements, such as lift-gate service or white-glove service
• All pickup and drop-off locations
• Preferred delivery time frame

Because prices, services and availability within a given time frame can vary, you may want to consider quotes from multiple providers before deciding. Once you've found one that works for you, follow the LTL provider's process to book a shipment.

A truck arrives on the scheduled date to pick up your freight. Keep in mind that truck drivers' working hours are highly regulated, resulting in many LTL providers charging hourly detention fees to ensure they're compensated for their time. Typically, stops longer than 2 hours result in these charges. This shouldn't be a problem for most LTL shipments, as they tend to be smaller, but it's something to be aware of.

Once the truck hits the road, you should be able to track your freight as it makes its way to the final delivery destination. Transparency and visibility during transport are critical, as they ensure you always know where your freight is. 

During delivery, your shipment may make several stops along the way as other freight is dropped off. Typically, shipments are collected from multiple customers and taken to a central hub for further sorting and consolidation to ensure the most efficient delivery routes possible. They then go through the distribution network.

Eventually, your freight arrives. At this stage, ensure the consignee carefully inspects the shipment and notes any damage incurred on the bill of lading. The bill of lading is a legally binding document that records all key aspects of a freight's transit, including special instructions, signatures when freight exchanges hands and the condition of the freight when it's delivered.

Benefits of LTL Shipping

LTL shipping provides versatile transportation solutions to businesses of all sizes. Whether you operate a small e-commerce startup or a massive manufacturing facility, several benefits can make LTL shipping a compelling option, including:

• Cost efficiency: Businesses share the cost of transportation when using LTL shipping. This means businesses only pay for the space they use, which reduces overall transportation costs.
  
  
• Environmentally friendly: LTL eliminates wasted space on trucks, resulting in fewer trucks on the road. This helps reduce emissions and companies' carbon footprints. If you take pride in running an environmentally conscious company, this is an excellent way to prevent unnecessary pollution and environmental impact.
• Flexibility: LTL providers specialize in optimizing their loads to improve efficiency. This benefits businesses greatly, providing greater flexibility and the ability to ship smaller quantities more frequently. LTL also allows for extra flexibility to accommodate growth and demand fluctuations without excess strain on businesses as they try to scale.
• Reliability: Many LTL providers operate with guaranteed transit time ranges, which makes it easier to plan shipments. Since LTL providers have their own established transportation networks, they can offer improved reliability on their deliveries. 
• Tracking: In most cases, LTL providers offer shipment tracking, helping businesses manage their supply chain and know where their products are in real time.
• Reduced risk of damage: While extra handling can raise the risk of damaged goods, professional LTL shippers have policies in place to minimize this. Goods are palletized, which can lower damage risks, and training and procedures ensure professional handling to further ensure your belongings stay safe.

LTL Solutions With Atlas International 

There's no need to invest in FTL when you only have half a truck's worth of freight to transport. Leveraging the benefits of LTL shipping can help optimize your business' transportation logistics, ensuring your inventory moves as it should through the supply chain. Whether you're shipping large amounts of manufactured goods to warehouses or organizing delivery to retailers, knowing when to opt for LTL can save time and money. 

For that reason, Atlas International offers flexible supply chain management solutions, including LTL services. With our expansive global network of warehouses and transportation providers and the ability to fine-tune our services, we're ready to help you find the best shipping solution for your needs. Tap into our 1,000-plus warehouse locations across North America, benefit from our transportation network and enjoy complete visibility of your inventory and shipments. Reach out today to request a quote and learn more about our 3PL services.