For small shipments, we use parcel service. If we have to send a bulk shipment, we book the whole truck shipping service. But what if your goods are larger than a parcel, but not enough to occupy the whole truck?
You don’t need to book the whole truck if you choose an LTL (less-than-truckload) shipping. What is LTL freight exactly? And how can it be a cost-effective option for your retail businesses? Let’s learn LTL less-than-truckload freight in detail.
Define LTL freight
LTL means less-than-truckload. It is used when a single shipper’s freight doesn’t fill an entire truck, allowing multiple shippers to share space and cost, commonly used for domestic shipments. Just like LCL less-than-container load shipping, with LTL (less-than-truckload) freight, your shipment is combined with others. This also means the truck will go through multiple stops and more processing.
When Do You Need LTL Freight Services?
Now you know now what LTL freight is, but why do you need one?
If you’re sending between one and six pallets, or your shipment weighs between 150 and 10,000 pounds, LTL is likely your best option. It works for small and medium-sized businesses that don’t always have full truckloads of products to move.
Here are some examples of when LTL freight is ideal:
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Shipping a few pallets of products to a retailer.
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Sending bulky items that don’t fit standard parcel sizes.
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Managing inventory restocks without needing a full truck.
Think of it like this: If you only have a few pallets or boxes to ship, it doesn’t make sense to book an entire truck. The good thing about LTL freight is that you do not have to pay for the whole truck. So, this is quite a cost-effective truck shipping option.
How Does LTL Less-Than-Truckload Work?
You might think your shipment just sits in a certain space on the truck, where it goes from point of origin to destination. But there is more to it.
Weight categories, freight class, hub and spoke; these are terms that might scare you when you enter into the LTL shipment world. You should understand these terms before starting your journey.
LTL Freight Class and Weight Categories
Let’s tackle what is LTL freight class first! The National Motor Freight Classification (NMFC) system organizes freight into 18 different classes, ranging from Class 50 to Class 500. These LTL freight classes cover shipments that weigh between 150 and 15,000 pounds, and the classification plays a big role in determining how the shipment is handled and billed.
The lower the class number, the easier and cheaper it is to ship. For example, Freight that’s durable, fits easily on a standard 4’ x 4’ pallet, and weighs 50 pounds or more per cubic foot is classified as Class 50. This is one of the least expensive classes to ship because it’s compact, easy to handle, and unlikely to be damaged.
On the other hand, higher class numbers mean the shipments take up more space. And these goods may be more fragile or require special handling, which makes them more expensive to ship.
If you want to see exactly where your shipment falls, it’s a good idea to consult the official NMFC freight class categories.
The Hub-and-Spoke System
After you understand LTL freight class and weight categories, let’s tackle another milestone, the Hub-and-Spoke System, on which LTL freight is based.
Once your freight is picked up, it’s taken to a local terminal (the “spoke”). From there, it’s sent to a central hub, which is like a distribution center. At the hub, shipments are sorted and organized based on their final destination.
If your shipment is going far, it might be transferred to another truck at the hub and continue its journey toward the next terminal. This system allows LTL carriers to efficiently move shipments across long distances while keeping LTL rates low.
How Long Does LTL Shipping Usually Take?
LTL (less-than-truckload) shipping times depend on several factors, generally taking 1-6 days depending on the distance.
While distance is a good starting point to estimate how long your shipment will take, the actual time can differ between LTL freight carriers. There are several things you have to deal with that can impact the shipping time, such as:
Laws and Regulations
Truck drivers must follow certain laws and regulations, like speed limits and limits on how many hours they can drive in a day. For instance, truck speed limits in the USA are usually between 55 to 70 mph.
In most European countries, the limits are lower, typically around 50 to 56 mph on highways. While these rules are essential for our safety, they can also affect how quickly a shipment gets to its destination.
Route Challenges
Apart from the speed limit, where the LTL trucks are heading matters as well. If your shipment is going to a less populated or rural area, it might take a little longer. Fewer trucks might be going in that direction, so your shipment may need to wait until there’s enough LTL cargo to fill up the truck. Plus, rural areas don’t have as many highways, which limits the options for alternative routes.
Number of Transfers
Similarly, LTL shipments often go through multiple terminals before reaching their final destination. This means your freight could be transferred to another truck several times, and each transfer adds a bit of time to the overall journey.
Unexpected Delays
And then there are delays, just like those that occur in sea freight, air freight, or courier services. Bad weather, traffic jams, poor road conditions, or equipment issues can all cause several days or even weeks of delays along the way.
There are many factors that go into deciding your final transit time. Use reliable LTL companies to deliver your shipment as soon as possible.
Pros of LTL freight
There are plenty of advantages of LTL (less-than-truckload) freight, such as:
Cost Saving
The most straightforward benefit of LTL shipping is the reduced shipping cost. With LTL freight, you only pay for the space your shipment takes up, which can be a huge money-saver. If you are concerned about the transit time, try to ship in advance.
Environmental-Friendly Option
Think about hiring a semi-truck for just a quarter of its space; that’s a lot of wasted time, money, and space! And all these translate into more emissions, more resource depletion, and more environmental footprint.
In LTL freight, one trailer is filled with multiple shipments, which is more efficient and reduces emissions. This eco-friendly shipping is adopted by many brands.
Cons of LTL freight
LTL freight is not a tick-the-box type of shipment, though. Does it save cost? Yes. Is it safe? Yes. But what about time? Well, this can be a major downside!
LTL freight takes a bit longer to plan and organize since your goods need to be consolidated with others.
The truck has to be fully loaded before it hits the road. It might not take a direct route, so your delivery could take longer to arrive.
As it involves multiple stops and transfers, there’s also more handling involved. This, in turn, slightly increases the risk of goods being misplaced and damaged. But thankfully, LTL freight processes palletized or crated shipments, which adds extra stability to your goods. After being palletized, shipments are much less likely to get damaged along the way. This is especially important when you’re shipping fragile products.
How to Drop off Pallets at the LTL Freight Terminal?
When it’s time to pick up your cargo from an LTL freight terminal, the process is quite straightforward. Simply contact your LTL carrier in advance to confirm pickup arrangements. At the terminal, present your Bill of Lading (BOL) to the staff, and they will use forklifts to load your shipment onto your truck. All you need to ensure is that your cargo is safely transported and remains in good condition.
Final Words
To sum up, LTL freight is a lucrative option for small businesses to ship their less-than-truck and more-than-parcel loads. If your shipment weighs between 150-10,000 pounds, and the speed is not a major concern, LTL (less-than-truckload) shipping will be your choice.
FAQs
What is the difference between LTL and FTL?
FTL full truckload shipping means you’re using the entire truck for your shipment, both in terms of space and weight. On the other hand, your LTL shipment only takes up part of the truck. LTL shipping is ideal for smaller loads.
When should I use LTL?
If you have more than 150 pounds to ship but not enough to fill an entire truck, less-than-truckload freight shipping is a good option. It’s best to talk to an experienced transport company to decide if LTL is right for your needs.
How many pallets count as LTL?
A standard pallet can hold between 3,700 and 4,600 pounds. Typically, shipping less than 12 pallets would be considered an LTL shipment.
