Understanding LTL Shipping
LTL Shipping from Your Perspective
What is LTL Shipping
Less-than-truckload (LTL) shipping is a transportation method used for shipments that do not require a full truckload. Instead of dedicating an entire trailer for one shipper, LTL consolidates multiple smaller shipments from different shippers that share space on the same truck.
This shared approach reduces shipping costs and improves truck utilization, though it may result in slightly longer transit times compared to full truckload (FTL) shipping.
Who Uses LTL Shipping?
- Carriers
- 3PLs/Brokers
- Shippers
- End consumers
Why use LTL shipping?
Carriers:
Carriers use LTL shipping to improve trailer utilization, reduce empty miles, and serve a broader customer base. This model helps optimize routing, lower operating costs, and increase revenue opportunities.
3PLs/Brokers:
3PLs and brokers offer LTL as a cost-effective alternative to FTL. They help customers optimize trailer space, reduce shipping costs, and support multi-stop and last-mile deliveries. LTL enables them to offer value-added services like white glove, residential, and inside delivery—all of which improve customer satisfaction.
Shippers:
Shippers use LTL to reduce freight spend when their shipments don’t require a full trailer. Since they only pay for the space they use, it’s a highly efficient option. LTL also enables access to services tailored to special freight requirements, improving delivery flexibility and operational efficiency.
End consumers:
Consumers rely on LTL when ordering large or heavy items that don’t fill a full truck—such as furniture, appliances, or equipment. LTL allows for more affordable delivery and provides flexible options like liftgate, residential, or inside delivery.
How can LTL shipping save you money?
Carriers:
By consolidating shipments and maximizing trailer space, carriers reduce empty miles and fuel costs. Route optimization increases operational efficiency, while accessorial services provide additional revenue opportunities.
3PLs/Brokers:
LTL allows 3PLs and brokers to bundle multiple customer shipments into a single load, reducing per-shipment costs and improving profit per mile. They also benefit from accessorial fees for specialized services at pickup or delivery.
Shippers:
Shippers save through freight consolidation—paying only for used trailer space. LTL supports just-in-time inventory strategies, which reduce warehousing costs and improve cash flow. Shippers can negotiate volume discounts and reach more markets efficiently, making LTL especially attractive to e-commerce and retail businesses needing frequent restocking.
End consumers:
Consumers and small businesses benefit by accessing wholesale pricing through bulk LTL orders while avoiding high FTL costs. Contractors, resellers, and entrepreneurs often use LTL to bring in inventory—such as furniture, appliances, or industrial equipment—at a lower cost, increasing margins on resale. Those who import or refurbish goods can also reduce shipping expenses using LTL’s shared freight model.