What Does LTL and FTL Really Mean?
LTL shipping caters to smaller shipments that do not require a full truckload, allowing multiple shippers to share space on the same truck. It’s a cost-effective choice for smaller loads, providing flexibility and cost savings. Conversely, FTL shipping suits larger shipments that fill an entire truck, offering faster transit times and fewer touchpoints.
Understanding each method’s nuances will empower shippers to make informed decisions that align with logistical requirements and business goals.
LTL carriers consolidate shipments from multiple customers into one truck, making it a cost-effective option for businesses with smaller freight volumes. Shippers pay only for the portion of the truck their goods occupy, while the carrier fills the remaining space with other shipments.
The benefits of LTL shipping include:
Since freight is consolidated, the cost of the journey is shared among multiple shippers, making it more affordable for each. Goods often get packed onto pallets, leading to fewer chances of loss or damage as a whole. However, the risk of damage exists in the multiple touchpoints that occur during pooling (consolidation) and deconsolidation.
Which Freight Is Eligible for Pooling and LTL?
Typical use cases for LTL include businesses with flexible delivery schedules, smaller shipments ranging from 150 to 10,000 pounds, and those requiring additional services such as liftgate pickup or delivery, inside delivery, or residential service. It’s a preferred choice for companies looking to minimize shipping expenses without needing rapid delivery times. Now, that might sound like an ideal situation, but there are some drawbacks, notably a higher mileage due to the risk of inefficient routing or even delays due to packing/configuration on a truck.
What About FTL or TL Shipping?
FTL shipping is the transportation of large quantities of cargo, typically enough to fill an entire trailer. This option gets chosen when a shipment is large enough to warrant the use of the entire truck’s space or when the shipper prefers that their goods are the only cargo carried. FTL carriers transport the freight directly from the pickup location to the final destination without any stops to load or unload other goods. This makes it ideal for time-sensitive freight or freight that could cause potential cross-contamination with other items. For example, health and beauty products shouldn’t be transported alongside pesticides and other household chemicals.
Advantages of FTL shipping include faster delivery times, as there are no additional stops to pick up or deliver other shipments. It also offers a higher level of security since the cargo remains in the same trailer for the entire journey.
Common scenarios for using FTL include the transportation of over 10,000 pounds of freight, large equipment, or full pallet loads. Businesses with high-volume shipments or those needing expedited services often opt for FTL to ensure their goods arrive quickly and intact. But, that may come at a higher cost than if they were able to wait a few days for pooling and deconsolidation within LTL, provided the freight isn’t subject to the negating factors above.
Which Is Best?
There’s not a hard-and-fast answer. Choosing between LTL and FTL requires careful assessment of the shipment’s specifics.
Size and weight of the freight, delivery timeframes, budget constraints, and the fragility of the items shipped must all be considered. For lightweight, less time-sensitive goods, LTL often stands out as the best choice.
Conversely, FTL suits large, heavy, or delicate items that need swift, direct transportation, including those within the white-glove services tier.
How to Get the Most From LTL and FTL
It’s easy to look at a particular market and rate all eligible shipments for LTL as FTL, but that’s not always the case. The reverse may also be incorrect. The trick is to follow a few steps to find the right mode for the right load, including:
1. Evaluate the packaging constraints and handling requirements.
2. Remember to think of possible accessorials, such as added dwell time that may accompany waiting to load a whole truck.
3. Route optimization costs and time verUnderstand freight classification.
4. Consider the total costs of FTL versus LTL.
5. sus a one-shot trip in FTL.
6. Evaluating carrier history and reputation for both modes.
