Less than truckload (LTL) shipping is a freight service where multiple shippers share space on the same truck, each paying only for the portion they use. It is the standard choice for shipments too large for parcel carriers like UPS or FedEx but too small to justify booking an entire truck.
| LTL Shipping Quick Reference | Details |
|---|---|
| Full name | Less Than Truckload shipping |
| Typical shipment size | 150 to 15,000 pounds (1 to 6 pallets) |
| How pricing works | Based on freight class, weight, dimensions, origin, destination, and accessorial charges |
| Transit time | Slower than FTL - multiple stops and hub transfers add time |
| Best for | Shipments too large for parcel carriers but not enough to fill a full truck |
| Key advantage over FTL | Lower cost - you only pay for the space you use |
| Key disadvantage vs FTL | Slower transit, more handling points, higher damage risk |
| Freight classes | 50 to 500 - set by NMFTA based on density, stowability, handling, and liability |
What is LTL Shipping?
LTL (Less Than Truckload) shipping is a freight service where your shipment shares truck space with cargo from other shippers. Each shipper pays only for the portion of the truck their goods occupy, rather than paying for the entire vehicle.
LTL is the right choice when your shipment:
- Is too large or heavy for standard parcel services (UPS, FedEx, USPS)
- Does not fill an entire truck or trailer
- Weighs between 150 and 15,000 pounds
- Fits on 1 to 6 pallets
It is widely used by manufacturers, wholesalers, distributors, and retailers shipping goods domestically across the US.
How Does LTL Shipping Work?
LTL shipping operates on a hub-and-spoke model. Here is the process from pickup to delivery:
Step 1 - Pickup A local carrier picks up your shipment from your facility or warehouse and transports it to the nearest LTL terminal (spoke).
Step 2 - Consolidation at origin terminal At the origin terminal, your freight is consolidated with other shipments heading in the same general direction. It is loaded onto a linehaul truck along with other shippers' cargo.
Step 3 - Linehaul to hub The consolidated truck travels to a larger centralized hub terminal. Long-distance shipments may pass through multiple hubs.
Step 4 - Sorting and transfer At the hub, freight is sorted and transferred to trucks heading toward the destination region.
Step 5 - Delivery terminal The shipment arrives at the destination terminal closest to the delivery address.
Step 6 - Final delivery A local carrier delivers from the destination terminal to the final delivery address.
Each transfer point adds time to the shipment - which is why LTL is slower than FTL (Full Truckload) shipping, where the truck goes directly from origin to destination without stops.
LTL vs FTL: Key Differences
| LTL (Less Than Truckload) | FTL (Full Truckload) | |
|---|---|---|
| Shipment size | 150 to 15,000 lbs, 1 to 6 pallets | 10,000 lbs+, 7+ pallets, full trailer |
| Pricing | Pay only for space used | Pay for entire truck regardless of fill |
| Transit time | Slower - multiple stops and hub transfers | Faster - direct point to point |
| Handling | More handling points - higher damage risk | Less handling - lower damage risk |
| Security | Lower - shared with other shippers | Higher - dedicated truck |
| Best for | Smaller, non-time-sensitive shipments | Large, time-sensitive, or high-value shipments |
| Tracking | More complex - multiple carriers involved | Simpler - single carrier end to end |
How is LTL Freight Pricing Calculated?
LTL freight pricing is more complex than FTL because multiple variables determine the rate. Here are the main factors:
Freight Class
The National Motor Freight Traffic Association (NMFTA) assigns a freight class to every type of cargo based on four characteristics:
- Density - weight per cubic foot
- Stowability - how easily it can be stored with other freight
- Handling - ease of loading and unloading
- Liability - risk of damage, theft, or perishability
Freight classes range from Class 50 (highest density, lowest rate) to Class 500 (lowest density, highest rate). A higher freight class means a higher rate per hundredweight (CWT). Correctly classifying your freight is one of the most impactful ways to control LTL costs.
Weight
LTL rates are typically quoted per hundredweight (CWT) - per 100 pounds of freight. Heavier shipments generally have lower per-CWT rates. The general weight ranges for LTL are 150 to 500 lbs, 500 to 1,000 lbs, 1,000 to 2,000 lbs, 2,000 to 5,000 lbs, and 5,000 to 10,000 lbs.
Dimensions and Density
The physical dimensions of your shipment affect how much space it occupies in the truck. Carriers calculate density (weight divided by cubic feet) to determine the applicable freight class. Low-density shipments take up more space relative to their weight and therefore cost more to ship.
Origin and Destination
The distance between pickup and delivery directly affects the base rate. Lane-specific pricing also applies - some routes are more competitive than others depending on carrier network density.
Accessorial Charges
Accessorial charges are added fees for special services or circumstances beyond standard dock-to-dock delivery. Common ones include:
| Accessorial Charge | When It Applies |
|---|---|
| Residential delivery | Delivering to a home address rather than a commercial dock |
| Liftgate service | When the delivery location has no loading dock |
| Limited access delivery | Delivering to schools, churches, construction sites, or other restricted locations |
| Inside delivery | Delivering beyond the threshold into the building |
| Redelivery | When the first delivery attempt fails |
| Fuel surcharge | Applied by most carriers based on current fuel prices |
| Oversized freight | Freight exceeding standard length, height, or width limits |
LTL Freight Classes Explained
| Freight Class | Weight per Cubic Foot | Examples |
|---|---|---|
| Class 50 | 50+ lbs | Bricks, sand, hardware, auto parts |
| Class 55 | 35 to 50 lbs | Hardwood flooring, steel rods |
| Class 65 | 22 to 35 lbs | Car accessories, bottled beverages |
| Class 70 | 15 to 22 lbs | Engines, machinery |
| Class 85 | 12 to 15 lbs | Crated machinery, cast iron |
| Class 100 | 9 to 12 lbs | Boat covers, wine cases |
| Class 125 | 8 to 9 lbs | Small appliances |
| Class 150 | 6 to 8 lbs | Auto sheet metal, clothing |
| Class 175 | 5 to 6 lbs | Clothing, couches |
| Class 200 | 4 to 5 lbs | Sheet metal parts, aircraft parts |
| Class 250 | 3 to 4 lbs | Bamboo furniture, mattresses |
| Class 300 | 2 to 3 lbs | Wood cabinets, tables |
| Class 400 | 1 to 2 lbs | Deer antlers, ping pong balls |
| Class 500 | Less than 1 lb | Gold dust, bags of air |
Benefits of LTL Shipping
Lower cost for smaller shipments You only pay for the space your freight occupies. For shipments that do not fill a truck, LTL is significantly cheaper than booking a full trailer.
No minimum volume requirement LTL accepts shipments as small as a single pallet, making it accessible for businesses of all sizes including small importers and distributors.
Additional service options Many LTL carriers offer services that FTL carriers do not - including residential delivery, liftgate service, inside delivery, and guaranteed time-specific delivery windows.
Environmentally more efficient Consolidating multiple smaller shipments into one truck reduces the total number of vehicles on the road and lowers per-shipment carbon emissions compared to running multiple partial loads.
Best Practices for LTL Shipping
Measure and weigh accurately Carriers will re-weigh and re-measure shipments at their terminals. If your declared dimensions or weight are understated, you will receive a freight bill correction with additional charges. Always round up to the nearest inch and verify weight on a certified scale.
Classify correctly Incorrect freight classification is one of the most common causes of unexpected LTL charges. Use the NMFTA freight class calculator or work with a freight broker to confirm your class before booking.
Palletize and shrink-wrap properly Place all items on pallets, shrink-wrap tightly, and stack heavier items at the bottom. Properly palletized freight is easier for carriers to handle, reduces damage risk, and may qualify for a lower freight class.
Complete documentation accurately Every LTL shipment requires a Bill of Lading (BOL). The BOL must accurately describe the goods, their weight, dimensions, freight class, and any special handling requirements. Errors on the BOL cause delays and additional charges.
Label all sides of the shipment Labels should be visible on the outside of every box and on the pallet itself. Include the destination address, shipper address, and PRO number (assigned by the carrier at pickup) on all labels.
Frequently Asked Questions
What is LTL shipping?
LTL (Less Than Truckload) shipping is a freight service where your shipment shares truck space with cargo from other shippers. You pay only for the portion of the truck your freight occupies. It is designed for shipments weighing between 150 and 15,000 pounds that are too large for parcel carriers but do not fill an entire truck.
What is the minimum weight for an LTL shipment?
The minimum weight for an LTL shipment is typically 150 pounds. Shipments below this threshold are generally handled by parcel carriers like UPS or FedEx rather than LTL carriers.
How many pallets can I ship LTL?
LTL shipments typically range from 1 to 6 pallets. Shipments of 7 or more pallets generally qualify for FTL (Full Truckload) pricing, which may be more cost-effective at that volume.
What is a freight class and how does it affect LTL rates?
Freight class is a standardized classification system set by the NMFTA that rates cargo from Class 50 (densest, cheapest to ship) to Class 500 (least dense, most expensive). Your freight class is determined by density, stowability, handling difficulty, and liability risk. A higher freight class means a higher rate per hundredweight.
What is the difference between LTL and LCL?
LTL (Less Than Truckload) refers to domestic truck freight where your shipment shares a truck with other cargo. LCL (Less than Container Load) refers to international ocean freight where your shipment shares a shipping container with other shippers' goods. Both involve consolidated shipping but apply to different modes of transport.
Is LTL shipping faster or slower than FTL?
LTL is slower than FTL. Because LTL shipments pass through multiple terminals and are transferred between trucks, transit times are longer. FTL shipments travel directly from origin to destination without intermediate stops.
What documents are required for LTL shipping?
Every LTL shipment requires a Bill of Lading (BOL), which serves as the contract between shipper and carrier. The BOL must include the shipment's origin and destination, description of goods, weight, dimensions, freight class, and any special handling requirements. Some shipments may also require a packing list or commercial invoice.
What are accessorial charges in LTL shipping?
Accessorial charges are fees added to the base freight rate for services beyond standard dock-to-dock delivery. Common examples include residential delivery, liftgate service, inside delivery, limited access surcharges, fuel surcharges, and redelivery fees. Always ask your carrier for a full list of potential accessorial charges before booking.
