LTL Freight: Ecommerce Cost-Effective Shipping Strategy

LTL Freight

When carrying freight that doesn’t need the utilisation of a complete trailer, less than truckload (LTL) freight shipment is employed. When sending cargo that weighs between 68 kg and 6800 pounds, this transportation method can be employed. When shipping LTL Freight, the shipper only pays for the space that their cargo takes up on a typical truck trailer; the remaining space is filled by the shipments of other shippers. LTL Freight shipping has a lot of advantages.

Benefits of LTL Freight

BenefitsDescription
Quicker DeliveryNo need to wait for a full truckload; book and ship immediately for faster delivery
Safe ShippingMeticulous wrapping and loading of items to prevent damage during transit
Ship Small ShipmentsIdeal for transporting smaller loads efficiently, even for small businesses
Lower Transportation CostTypically less expensive than full truckload (FTL) shipping for the same lane
Eco-friendlyReduces carbon footprint and fuel consumption, making it an environmentally friendly choice
Multiple Shipping OptionsOffers various shipping choices, including expedited, liftgate, limited access, and custom delivery windows
Easy Shipment TrackingProvides clear visibility with tracking solutions, allowing real-time monitoring of shipments from anywhere

When to Use LTL Freight

  1. LTL Freight Shipping Benefits
  • For small firms that don’t have enough goods to fill a whole truck, LTL shipments are a cost-effective option. LTL goods are secured and palletized for shipping. 
  • LTL shipments move through fewer hands, therefore there’s less of a possibility that the cargo will get damaged. LTL freight shipments are easier to trace using TMS or other internal systems. 
  • LTL shipping therefore presents a fantastic option for small to medium firms with minimal cargo that need further protection from hazards.
  1. LTL Freight Shipment Weight Range
  • LTL shipments can weigh anywhere between 68 and 4500 kg. 
  • No matter if the consignment fills the vehicle or not, anything more than 5 tonnes requires specific equipment and an entire truck. 
  • LTL is the less expensive choice if your shipment weight fits inside that range.
  1. LTL Freight Delivery Time Concerns
  • The overall delivery time for LTL goods is a drawback. LTL trucks may transport cargo for a variety of clients. 
  • They may be travelling to the same city or broad region, but they will still make several stops along the way. 
  • LTL trucks are therefore not the best choice for time-sensitive urgent shipments. 
  • LTL trucks may provide tracking services to help you keep track of your shipment, but this is no assurance that it will arrive on schedule.
  1. Dimensions in LTL vs. FTL Consideration
  • When deciding between LTL and FTL, dimensions are crucial. Weight, height, length, and girth all factor towards price. 
  • It may be necessary to hire specialised equipment and there may be additional costs if the shape of the shipment is unusual, such as if it is a huge figurine or an art installation.
  • Other goods cannot be safely stacked or loaded into the vehicle because odd-shaped cargo requires more room. 
  • LTL shipping could be your best option if your order’s dimensions are within the typical range.
  1. LTL Freight Class and Cost Variation
  • All freight is assigned a freight class, and the cost of LTL trucks might vary depending on the freight class. 
  • For instance, the freight class designated for antiques, gold bars, and other rate products is 500. 
  • Class 500 is also used for lightweight, low-density objects that take up space, like ping pong balls. 
  • Due to its rarity and fragility, truckers must employ extra care and specialised equipment to transport the cargo intact, which frequently results in additional fees. 
  • You can decide if LTL shipment is the best shipping option by figuring out which class your freight belongs to. 
  • For instance, it will cost less to ship via LTL if your product is high-density and less likely to sustain damage, like palletized bricks.

Working on LTL freight

Instead of travelling straight from a freight pick-up site to the delivery destination, LTL freight uses a hub and spoke concept. The merchandise is picked up from modest and neighbourhood distribution facilities.

It is then moved to bigger hubs where it is processed before continuing on its trip with other goods being carried to the same location. The online seller gets paid for the amount of space the pallets take up because the merchandise is placed on separate pallets. Before they get to their destination, these pallets are moved from one truck to another.

Difference between LTL and FTL

AspectLess-Than-Truckload (LTL)Full Truckload (FTL)
DefinitionFor shipments not filling an entire truckFor shipments that fill or nearly fill a truck
Space AllocationShares space with other shippersThe entire truck is dedicated to one shipper
Ideal forSmaller shipments (less than 12 pallets)Larger shipments (12 pallets or more)
Cost SavingsAllows cost-sharing with other shippersCan be more cost effective for larger shipments
Product SeparationProducts may share truck spaceProducts have dedicated space in the truck
Suitable for Smaller BusinessesYesYes (but the cost-sharing benefit may be lost)
Efficient Space UtilizationMaximizes truck capacityIdeal for high-volume shipments

Conclusion

When carrying freight that doesn’t need the utilisation of a complete trailer, less than truckload (LTL) freight shipment is employed. For small firms that don’t have enough goods to fill a whole truck, LTL shipments are a cost-effective option.

LTL goods are secured and palletized for shipping. No matter if the consignment fills the vehicle or not, anything more than 5 tonnes requires specific equipment and an entire truck.
The overall delivery time for LTL goods is a drawback. LTL trucks may transport cargo for a variety of clients. It may be necessary to hire specialised equipment and there may be additional costs if the shape of the shipment is unusual, such as if it is a huge figurine or an art installation. The merchandise is picked up from modest and neighbourhood distribution facilities.

FAQs

What is Less-Than-Truckload (LTL) shipping?

When carrying freight that doesn’t need the utilisation of a complete trailer, less than truckload (LTL) freight shipment is employed.

Can LTL shipments be delivered to residential addresses?

Even if LTL freight is delivered to a company, the shipper will be charged an additional cost known as a “residential address fee” when it is delivered to a residential area.

How does LTL shipping differ from Full Truckload (FTL) shipping?

Any LTL shipment involves a variety of businesses loading the trailer with goods, which are then unloaded at various locations.

How is the cost of LTL shipping determined?

Carriers divide the entire volume of the cargo by the weight of the LTL shipment per hundred kgs to get the shipment’s density. The cost increases with shipping density.

How should I package my LTL shipment?

  • Choosing the right materials
  • Safely stacking and securing your pallet
  • Marking, labelling and classifying your freight

What are the weight limits for LTL shipments?

LTL shipments can weigh anywhere between 68 and 4500 kg. However, anything over 5 tons requires specialized equipment and an entire truck.

How does LTL freight differ from full truckload (FTL) shipping?

LTL shipping is suitable for smaller shipments that do not fill an entire truck (typically less than 12 pallets), while FTL shipping is ideal for larger shipments that fill or nearly fill a truck (12 pallets or more). LTL allows for cost-sharing with other shippers, while FTL provides dedicated space in the truck.

Shraddha Thuwal
Author

Shraddha Thuwal

Shraddha Thuwal worked as a content writer at WareIQ. She actively contributes to the creation of blog posts centered on eCommerce operations, fulfillment, and shipping, in addition to providing insights on various strategies and techniques tailored for eCommerce sellers. With an impressive track record, Shraddha boasts over two years of content writing experience, spanning a spectrum of industries including logistics, supply chain, and media.

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