LTL vs. FTL (less than truckload vs. full truckload)
FTL means a shipper has booked an entire truck for their cargo. LTL means the cargo shares a truck with other shippers' cargo, picked up and dropped off via terminal hubs. LTL is the trucking analogue of LCL.
FTL is direct: one pickup, one delivery, no intermediate handling. Per-pound cost is lower at full loads and the transit time is more predictable.
LTL uses a hub-and-spoke network. Cargo is picked up on a city truck, brought to a terminal, sorted onto linehaul trailers, moved to a destination terminal, sorted again, and delivered on another city truck. Each step adds time and exposure to damage.
The break-even between LTL and FTL is roughly 8-12 pallets or 12,000-15,000 lb in most lanes, depending on freight class and lane competition. Below break-even LTL is usually cheaper; above it, FTL.
LTL is priced by NMFC freight class. Class 50 is the cheapest (dense, easy to handle); class 500 is the most expensive (low density, fragile, awkward). Class drift — paying a class higher than the goods actually warrant — is one of the more common avoidable overcharges in LTL spend.
Related terms
- PalletA pallet is a flat transport structure that supports goods in a stable fashion while they are lifted by a forklift, pallet jack, or stacker. The two most common standards are the 48×40 inch GMA pallet (North America) and the 1200×800 mm EUR-pallet (Europe).
- DrayageDrayage is short-haul trucking of containers, typically from a port or rail yard to a nearby warehouse or vice versa. It is one of the most expensive per-mile legs in a container's journey.
- NMFC freight classNMFC (National Motor Freight Classification) freight class is a 1-to-500 scale used to price LTL shipments, based on density, stowability, handling, and liability. Lower class = denser, easier to handle = cheaper.
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