Less Than Truckload
A Less Than Truckload (LTL) service, also known as LTL shipping, is a trucking option for shipments that are smaller than an entire truckload.
An LTL shipment is combined with other LTL shipments to fill a truck, with each shipper paying only for the space used rather than the entire truck. Compared with Full Truckload (FTL) services, LTL trucks make multiple stops to pick up and drop off shipments at different trucking terminals before reaching their final destination. On the other hand, an FTL shipment only needs to travel directly to its final destination, whereas LTL shipping may take longer to arrive.
Shipments are often transloaded from one LTL truck to another before reaching their final destination. However, the longer transit times also help reduce LTL shipping costs.
LTL allows businesses to move small quantities of freight frequently at reduced freight and logistics costs, supporting a larger scale of operation. Wholesalers also rely on LTL shipments to effectively maintain inventory levels. Rather than waiting for stocks to deplete enough to warrant an entire FTL order, wholesalers can keep stock levels topped up with LTL deliveries to avoid lost sales.
Overall and incrementally, LTL shipping can be slightly more expensive than FTL options. However, the payoffs of easily and efficiently transporting smaller shipments through a chain of LTL trucks fill a niche that FTL shipping cannot.