Expediting the distribution process is made easier with less-than-truckload (LTF) and full truckload (FTL or TL) freight shipping. Determining which method is the best fit for your shipping needs will take the heavy lifting out of the distribution process.
You may also opt to delegate your shipping services with the help of a third-party logistics partner (3PL) like RPM. RPM leverages our exclusive carrier network to provide shipment oversight and accommodate your unique transportation needs.
What Is LTL Shipping?
LTL refers to less-than-truckload shipping. LTL freight shipping occurs when freight from multiple exporters is transported on a single truckload. The shipper will pay solely for the portion of the semi carrier that their shipment occupies. LTL shipments from other sellers take up the remainder of the cargo space.
Who Uses LTL Shipping?
- LTL shipping is cost-effective, ideal for small businesses, and reduces the number of carbon emissions used by consolidating shipments from multiple exporters into a single freight truck.
- LTL shipping is the optimal choice for businesses that are shipping freight weighing between 15 and 15,000 pounds.
- If freight consists of one to six pallets or measures up to 14 linear feet, LTL shipping is the perfect option to optimize truckload capacity.
What Are the Pros of LTL Shipping?
- Enhanced tracking capabilities: Carriers offering LTL shipping provide exporters with advanced tracking services. Options may include a PO number, a PRO number, a shipment reference number, a pickup time frame, and a bill of lading number.
- Durable packaging: LTL shipments are typically packaged in pallets before being transported onto a cargo truck. Doing so increases the security of the exports and minimizes potential damages.
- Advanced service options: Specialty services such as liftgates and inside pickup and delivery are offered by carriers for LTL freight shipments.
- Cost-effective pricing: Businesses pay only for the space their cargo occupies in the truck, making LTL shipping an economical option for shipping fewer pallets.
What Are the Cons of LTL Shipping?
- Potential damages: Since shipments may be removed and reloaded onto the truck to service pickups and deliveries for other shippers, LTL does increase the likelihood of possible cargo damages.
- Longer delivery times: LTL shipments are delivered to multiple carriers in various locations, extending the time between pickup and delivery.
- More variables: Unlike FTL shipping, LTL is not a straight shot from one location to the next and is, therefore, less predictable. Sellers are not provided information on how many exporters share a single freight truck or what other items are transported.
- Decreased security: Since multiple stops may occur during the course of transit, others are likely to come in contact with your freight, which can decrease the security of your shipment.
What Is FTL Shipping?
FTL refers to full truckload freight. FTL freight shipments occupy all or most of the space in a cargo truckload and are typically the preferred method to transport large shipments. Shippers receive exclusive access to the entire truck, resulting in upwards of 20,000 pounds of freight space.
Unlike LTL shipping, FTL exports are transported directly from pickup to delivery, without stopping to pick up or drop off freight from other exporters.
Who Uses FTL Shipping?
FTL shipping is the best option for exporters who are shipping fragile or high-value cargo. FTL shipping minimizes loading and unloading during the transit process, so valuable and breakable items are kept safe and secure.
Sellers shipping more than six pallets in one truckload are the best candidates for FTL freight shipping.
For exporters with time-sensitive shipments, FTL shipping is the preferred option. Shipments have a direct path from pickup to delivery, resulting in reduced transit periods.
What Are The Pros of FTL Shipping?
- Damage reduction: The length of time shipments are in transit is a good indicator of the likelihood of damage. FTL shipping minimizes the time span until delivery takes place, resulting in a lessened likelihood of damaged shipments.
- Increased shipment capabilities: In addition to fragile cargo, FTL shipping is a reliable option for exporters who are transporting items that are oversized, hazardous, or not easily stacked.
- Maximized space: Exporters typically pay a flat rate to cover the cost of an entire truck, leaving them with the ability to utilize the full extent of the truckload capacity for their cargo.
- Quicker delivery times: With FTL shipping, freight remains on a single truck for the duration of the transit process. No excess stops are made to pick up and drop off cargo along the way, ensuring expedited deliveries.
What Are the Cons of FTL Shipping?
- Reduced availability: Trucks and pricing for FTL shipping are determined by daily supply and demand, meaning there is no definitive guarantee of availability.
- Increased price point: FTL shipping comes at a higher cost than LTL shipping, regardless of how much cargo space is used in transit. Exporters pay the price for a full truckload even if only several pallets are shipped at one time.
- Lessened service options: Advanced service options such as handling or inside pickup and delivery are not always provided with FTL freight shipping as they typically are with LTL shipping.
How To Choose Between FTL and LTL Shipping
Both LTL and FTL freight shipping options fulfill distribution responsibilities along the supply chain. Evaluating several factors, such as the height, width, and weight of freight, the intended delivery schedule, and the freight classification, can help to determine whether LTL or FTL shipping is the most compatible pairing to fulfill your business needs.
Decide How Much You’re Shipping
LTL freight shipping is the ideal option for small and medium-sized businesses that intend to ship compact cargo. Shipments that occupy less than 24 feet of space in a truck and weigh between 100 and 10,000 lbs are best suited for LTL shipping.
FTL shipping is the best method for transporting freight weighing more than 10,000 lbs. It is more cost-effective to utilize FTL shipping for larger loads rather than splitting up the shipment into multiple LTL shipments.
Prioritize Your Delivery Schedule
If exporters have a narrow time frame to complete a delivery, using LTL shipping is not the preferred option. Due to the fact that LTL freight shipping transports pallets from other shippers, stops and deliveries along the way tend to make transit and delivery date less definitive.
On the other hand, LTL provides flexibility with an adjustable timeframe for pickup and delivery. FTL freight shipping ensures that deliveries are accelerated by taking freight directly from pickup to delivery. In addition, cargo remains on a single track, cutting back on excess time spent loading and unloading other shipments.
Determine Your Budget
The most considerable distinction between FTL and LTL freight shipping generally comes down to pricing.
Several factors can help to determine price and rate, some of which may include:
- Shipment weight
- Cost of fuel
- Time of year
- Location
- Operation costs
- Truckload capacity
- Dispatch
- Shipping lanes
- Delivery destination
- Pickup placement
Rates vary depending on which carriers are used and which routes are typically covered. Prices for off-route locations can increase by as much as 50% depending on the shipping provider, making it crucial to compare carrier options.
LTL Pricing
The NMFTA (National Motor Freight Traffic Association) assigns classifications for pallets shipped with LTL, each of which correlates to various costs and tariffs. Factors that influence rates for LTL shipping include:
- Freight classification: The National Motor Freight Classification (NMFC) is used to divide LTL shipments into 18 classes, numbered in a range from 50 to 500. Packages of lower density or of higher value typically have a class rating closer to 500. Heavier, less valuable freight will have a classification grade closer to 50. Hazardous, delicate, perishable, and oversized cargo will typically ship at a higher cost, whereas freight that has less risk of damages and is easier to transport will have a diminished price.
- Base rate: When it comes to the base rate, every carrier is different. Base rates for LTL shipping are usually determined by the provider and are quantified at the rate of 100 pounds and by comparing other factors such as freight classification and route.
- Transit distance: The greater the distance an LTL shipment will be traveling, the higher the cost. Depending on transit routes, there are some cases where exporters receive a price reduction if cargo is being shipped along a regularly-frequented route. If shippers do not provide services for the duration of a route, companion carriers may be implemented to assist in one or several legs of a trip.
- Advanced service option fees: Fees may be added to LTL shipments for carriers that provide add-on services for their exporters. Some of these amenities may include special access for pickups and deliveries, liftgates, protective packaging, loading services, and more.
FTL Pricing
Exporters typically pay a flat rate to compensate for an entire truckload instead of paying for a portion of space alongside other shipments. Trucking lane availability, gas mileage, and lead time can contribute to the overall cost of FTL freight shipping.
Essential Takeaways
If you are looking for transportation services for small quantities of stackable, durable cargo, LTL shipping may be the right option for your business. LTL shipping is also the best choice for those with flexible pickup and delivery timelines.
For those transporting larger shipments, high-risk freight, and time-sensitive deliveries, FTL will be the preferred choice.
If you are searching for a freight transportation provider, we offer LTL shipping, FTL shipping, drayage, cross-border orders, intermodal exports, expedited services, and more. In addition to providing specialized supply chain management and transportation brokerage services, RPM has a network of more than 30,000 carriers.
Our unique specializations span bulk, freight, and vehicle export and encompass industries including food and beverage, retail, e-commerce, paper and packaging, consumer packaged goods, chemicals, and high-value electronics are accommodated for.
Sources:
LTL vs FTL Shipping: Which Method Is Better for Business
What is the Difference Between FTL and LTL Freight Shipping?
What is LTL Freight Shipping? | Freightquote
The Pros and Cons of LTL Shipping - Direct Freight
Everything You Need To Know About FTL Shipping In 2022 - Stockarea
Choosing the Right Shipping Method: LTL vs. FTL - James River Logistics
Understanding LTL vs TL Shipping Rates | Flock Freight
