What Is LTL shipping? How less-than-truckload freight works

LTL shipping, which stands for Less-Than-Truckload shipping, is a method of shipping freight that is ideal for businesses with cargo that doesn’t fill a full truckload. 

The process of LTL shipping starts with the freight pickup from the shipper’s location. The shipment is then transported to a terminal or hub, where it is consolidated with other shipments. From there, the freight is loaded onto a trailer and transported to another terminal or hub. Finally, the shipment is delivered to its destination. 

There are many advantages to using LTL as part of your freight mix. When used correctly, it can optimize your overall transportation plan and deliver a high level of satisfaction for your customers. Here are some of the most significant benefits:

Cost-control

By using LTL shipping, companies can save money on shipping costs by paying only for the space they need in the trailer rather than the entire truckload. Accurate freight classification is crucial in this process, as it ensures fair pricing and helps optimize the space needed for your inventory. This classification affects pricing based on factor including:

• Density
• Stowability
• Handling requirements
• Liability

For a quick and reliable way to classify your shipment, check out Schneider's Freight Class Calculator.

Flexibility

Businesses can ship smaller quantities of goods as needed rather than waiting until they have enough to fill an entire load. This means that businesses can use LTL to ship products more frequently. This leads to faster delivery times and happier customers.

This level of flexibility can also help maintain inventory levels and reduce the risk of stockouts. LTL carriers also offer more pickup and delivery options, which allows businesses to choose a schedule that works best for them.

Improved tracking

Every LTL shipment is assigned a unique tracking number. This technology allows businesses and their customers to keep track of individual orders from pickup to delivery. This means shippers can keep their customers informed about the status of shipments, which can improve customer satisfaction.

Meeting sustainability goals

Consolidation is key. By sharing space on a truck with other shippers, businesses can reduce the number of trucks on the road, reducing carbon emissions.

Access to new markets

LTL allows manufacturers and retailers to move smaller quantities of goods to test new markets without committing to a large shipment. This can help organizations determine whether a new market is worth pursuing without incurring significant financial risk.

With its cost-effectiveness and convenience, LTL shipping is an ideal choice for businesses transporting smaller shipments. 

To ensure the best possible outcome when selecting a provider, consider these key services: 

• A large and varied network of LTL carriers
• Expertise and experience in choosing reliable carriers
• Processes to ensure your goods are handled safely throughout every step of delivery