Less-than-truckload (LTL)

What is less than truckload (LTL)?

Less than truckload (LTL) is a freight shipping method used when a shipment is too large for parcel service but does not require or justify a full trailer. LTL shipments typically weigh between 150 and 15,000 pounds. Rather than booking a dedicated trailer, LTL shippers pay only for the portion of trailer space their freight occupies; the carrier fills the remaining space with freight from other shippers.

LTL trucking companies consolidate multiple customers' shipments across a network of terminals and relay points. This makes LTL a cost-effective option for businesses that ship regularly but in smaller volumes, or for large and bulky items that do not fill a truck on their own.

Benefits of LTL shipping

  • Reduced costs: You pay only for the trailer space your freight occupies, with the remaining cost shared across the other shippers on the load

  • Increased security: LTL shipments are typically palletized before loading. A well-packaged pallet is more secure than multiple loose handling units

  • Additional service options: LTL carriers offer enhanced services including liftgate access, inside pickup and delivery, and residential delivery options

  • Shipment tracking: LTL carriers provide tracking by bill of lading number, PRO number, purchase order number, shipment reference number or pickup date range

Factors that determine LTL shipping rates

LTL rates are calculated based on a combination of shipment characteristics:

  • Location: The greater the distance between origin and destination, the higher the rate

  • Dimensions and weight: Used to determine the freight class, which directly affects pricing

  • Freight class: Based on density, stowability, handling complexity and liability — a higher class means a higher rate

  • Special handling requirements: Perishables, fragile items and potentially hazardous materials typically incur higher rates

  • Expedite premium: If a shipment needs to move faster than standard transit time, an additional fee applies

  • Accessorial charges: Fees added for services beyond standard pickup and delivery

LTL freight class

Every LTL shipment requires a freight class — a standardized numeric classification (ranging from 50 to 500) assigned based on the commodity's density, handling complexity, stowability and liability. The lower the class, the lower the rate. LTL freight class is maintained by the National Motor Freight Traffic Association (NMFTA) through the National Motor Freight Classification (NMFC) system.

Using the correct class matters: an incorrect classification can result in reweigh or reclassification penalties from the carrier, adding unexpected costs and delays.

How technology supports LTL shipping

Transportation management systems (TMS) give LTL shippers the tools to manage freight classification, rate comparison and shipment execution more efficiently:

  • LTL density and linear feet rating—including cubic capacity and dimensional factor calculations

  • Access to market-based rate quotes from a broad carrier network

  • Load booking and management at any time, with automated shipment alerts

  • Tracking of pickups and deliveries and exception management

  • Automated identification of carrier reweigh or reclassification on invoices, with support for freight settlement across stakeholders

  • Multimodal optimization that evaluates whether LTL, truckload or another mode is most cost-effective for any given lane

  • Pool distribution to consolidate LTL shipments heading to the same region, reducing the number of trucks entering a facility

For businesses with complex LTL shipping needs—multiple locations, frequent consolidation, international LTL compliance—a TMS with advanced optimization and settlement capabilities reduces cost and administrative burden simultaneously.