Less Than Truckload, or LTL, is a freight service used when a shipment is too large for parcel delivery but too small to fill an entire truck trailer. In LTL shipping, freight from multiple shippers is combined on the same truck, and each shipper pays for the space their shipment uses. LTL is commonly used for palletised freight, business deliveries, regional distribution, and cost-efficient transport of smaller commercial shipments. LTL freight is moved through a terminal network.
LTL vs. FTL
- LTL is cost-effective for 1 to 10 pallet shipments
- LTL freight is classified and priced by freight class
- LTL involves more handling and longer transit than FTL
- FTL is direct and faster; LTL goes through multiple terminals
How LTL Is Priced
- Based on freight class (NMFC), weight, and distance
- Fuel surcharge added to the line-haul rate
- Accessorial charges for liftgate, residential delivery, and inside delivery
Related terms: Liftgate Fee, dry van shipping.
