Less-than-truckload (LTL)
Less-than-truckload (LTL) shipping moves freight that does not fill a trailer, typically one to six pallets or 150 to 10,000 pounds, by combining shipments from many shippers across a carrier's hub-and-spoke terminal network. Pricing depends on weight, distance, and freight class, and each shipment is handled several times in transit. LTL costs less than booking a full truck but runs slower, with more damage exposure and frequent invoice re-rating.
Examples
Density drives class: A 900-lb pallet of machined aluminum brackets, dense and hard to damage, rates class 60 and costs $214 from Chicago to Nashville. The same 900 lb of empty plastic enclosures, light and bulky, rates class 175 and costs $592 on the identical lane.
The re-rate: A pallet is declared at 48 x 40 x 48 inches and class 85, quoted at $338. The terminal dimensioner measures 62 inches tall with overhang, re-classes it to 110, and the invoice lands at $447 plus a $35 inspection fee.
Consolidate and save: Three 4-pallet shipments a week to one assembly plant ($465 each, $1,395 weekly) become a single weekly 12-pallet truckload at $1,080, cutting freight spend 23 percent and receiving-dock handling by two-thirds.
Definition
An LTL shipment rides a network, not a truck. A pallet is picked up on a local route, cross-docked at an origin terminal, linehauled (sometimes through a breakbulk hub), cross-docked again, and delivered on another local route. Every touch adds transit time and damage risk, which is the real difference from full truckload: an FTL trailer is loaded once and sealed, while an LTL pallet may be handled five or six times.
Pricing runs on the NMFC freight classification system, which assigns commodities a class from 50 to 500 based mostly on density, plus handling, stowability, and liability. Lower class, lower rate per hundredweight. This is also why LTL invoices so often differ from quotes: terminals run freight across dimensioners and scales, and a pallet declared at class 70 that measures out at class 125 gets re-rated, with the difference appearing alongside the accessorial charges.
The shipper's defenses are accurate dimensions and weights on every bill of lading, density-based pricing agreements where volume justifies them, and order consolidation that turns frequent small shipments into fewer, denser ones, which can step the class and the rate down together.
Frequently asked questions
What is LTL shipping?
Less-than-truckload (LTL) shipping moves freight that does not fill a trailer, typically one to six pallets or 150 to 10,000 pounds, by combining shipments from many shippers across a carrier's hub-and-spoke terminal network. Pricing depends on weight, distance, and freight class, and LTL costs less than booking a full truck but runs slower with more handling.
How does freight class affect LTL pricing?
LTL pricing runs on the NMFC freight classification system, which assigns commodities a class from 50 to 500 based mostly on density plus handling, stowability, and liability, with lower classes earning lower rates per hundredweight. Density is decisive: 900 pounds of dense machined brackets rated class 60 cost $214 on a lane where the same weight of light, bulky plastic enclosures rated class 175 cost $592.
Why do LTL invoices differ from quotes?
LTL invoices differ from quotes because terminals run freight across dimensioners and scales, and a pallet declared at one class that measures out higher gets re-rated, with the difference appearing alongside accessorial charges. In one case, a pallet declared at class 85 and quoted $338 measured 62 inches tall with overhang, re-classed to 110, and invoiced at $447 plus a $35 inspection fee. Accurate dimensions and weights on every bill of lading are the first defense.
How is LTL freight handled in transit?
An LTL shipment rides a network rather than a single truck: picked up on a local route, cross-docked at an origin terminal, linehauled (sometimes through a breakbulk hub), cross-docked again, and delivered on another local route. A pallet may be handled five or six times, and every touch adds transit time and damage risk, which is the structural difference from full truckload, where a trailer is loaded once and sealed.
How can shippers cut LTL costs?
Shippers cut LTL costs with accurate dimensions and weights on every bill of lading, density-based pricing agreements where volume justifies them, and order consolidation that turns frequent small shipments into fewer, denser ones. Consolidation can step the class and the rate down together: three 4-pallet shipments a week at $1,395 became one 12-pallet weekly truckload at $1,080, cutting freight spend 23 percent and dock handling by two-thirds.