What is the Difference Between FTL and LTL Freight Shipping?

Most shippers in the United States operate on tight profit margins, which often has business owners looking for ways to decrease their costs as much as possible. If you’re a US-based shipper looking for the best freight rates, you’ve probably run into the terms full truckload (FTL) and less-than-truckload (LTL) during your search. Knowing the differences between these two methods is an important part of building your shipping strategy.

Key Takeaways

• FTL truckload shipping involves dedicating an entire trailer to a single freight shipment, whether it actually takes up the entire trailer or not.
• LTL shipping includes freight shipments from multiple shippers consolidated into a single trailer.
• LTL can be more affordable than FTL since the cost of transportation is split between multiple consignors. 
• FTL is usually faster since it doesn’t involve multiple stops.
• FTL also minimizes handling of the freight, which reduces the chance of damage due to human error.

In this article, I’ll compare these two forms of truckload shipping, including their advantages, some sample scenarios of when FTL would be preferable to LTL, and vice versa.

FTL vs LTL Freight Shipping

For the most part, the difference between FTL and LTL freight is simple:

• FTL is used when a single shipper needs to move freight from one location to another using an entire trailer.
• LTL refers to shipping cargo from two or more shippers in the same trailer.

A misconception new shippers sometimes have is that FTL means the entire trailer will be fully loaded by a single client. This can happen, but it isn’t always the case. By that same token, LTL doesn’t necessarily mean there will be empty space in the trailer. 

To make this differentiation easier to understand, let’s examine some advantages of each type of freight shipping.

Some of the most notable advantages of LTL shipping include:

• Affordability: By consolidating different shipments into a single trailer, costs are split among the shippers rather than being borne entirely by one business. 
• Flexibility and Scalability: LTL carriers can easily scale their services to your shipping needs, from smaller supplementary shipments to full restocking orders.
• Extra Delivery Services: When a freight shipment needs to be delivered within a residential area, LTL shipping is usually the best choice thanks to the availability of trucks equipped with lift gates.
• Efficient Use of Resources: While not necessarily a direct benefit to shippers, LTL reduces empty trailer space.  This makes for more fuel-efficient deliveries overall, giving you the opportunity to align with clients with whom reducing their carbon footprint is a core value

For greater clarity, I’ve put together the following scenarios that show the advantages of LTL shipping at work.

Related: How Do I Find My NMFC Code?

When to Choose LTL Shipping

Say you run a relatively small business selling heavy-duty furniture wholesale to retailers. In most cases, your customers prefer to run lean inventories and only order four to eight pallets of goods at a time. These retailers have standing, scheduled orders and rarely require expedited freight shipments.

Here are some reasons LTL would outperform FTL under these circumstances:

• Speed of Shipping is Not Crucial: This means the shipment has time to go through different distribution centers on its way to its final destination.
• Lower Freight Costs: A freight broker can reduce prices for their clients using LTL to combine shipments from several businesses into one trailer.
• Minimal Handling Concerns: The items in question are made of sturdy materials such as lumber, steel, and aluminum. This reduces the chances of damage when the goods are unloaded and re-loaded onto different trucks during transit.

When time isn’t of the essence and reduced costs are your number one priority, LTL is a great option for shippers. But what if things were reversed and lower costs aren’t as important as timely, predictable delivery? For that, look to FTL.

You can expect the following benefits when shipping freight via full truckload.

• Faster Delivery Times: When you ship using this method, there are no other shipping parties involved and no additional stops. The truck delivers your goods from point A to point B stopping only for fuel and required breaks.
• Reduced Chances of Damage: FTL shipments go through less handling than LTL, so the likelihood of goods being damaged or destroyed in transit goes down correspondingly.
• Better Tracking and Visibility: Often, LTL shipments can be difficult to track due to their multiple stops. This is much less of an issue with full truckload freight, since the truck doesn’t have to go through as many check-in procedures along the way.

Let’s return to our furniture wholesaler example for a scenario where FTL shipping wins.

When to Choose FTL Shipping

In addition to heavy-duty furniture, your wholesale business also offers fragile items such as standing mirrors, glass coffee tables, and chandeliers. One of your customers decides to expand their retail offerings to include such goods, and their initial stocking order will be about 12 to 15 pallets in size. They also want to receive the order within three to four business days to meet projected demands.

FTL will be your go-to option here for the following reasons.

• Less Handling of Fragile Items: Glass items should be handled as little as possible while in transit, since they can be easily damaged. Damaged freight is a nightmare you don’t want to deal with if at all possible.
• Quick Shipping: Booking a whole truck and trailer means the shipment won’t be held up by multiple stops for other shippers and consignees.
• Improved Oversight of the Shipment: You’ll be able to provide tracking updates to your customer with greater ease, improving their experience and ensuring future business.

Partnering with a third party logistics (3PL) freight broker can help you choose the best shipping method for your freight on a case-by-case basis. 

Related: 3PL vs Freight Broker: Outsourcing Your Logistics Needs

Fast, Cost-Effective Freight From USA Truckload Shipping

Moving large shipments across the United States requires expertise in logistics and access to a wide variety of delivery vehicles. That’s why shipping businesses of all sizes rely on freight brokerages like us to take the guesswork out of this complex process.

USA Truckload Shipping has access to FTL and LTL carriers across the country, in addition to warehouses and distribution centers. From storage to freight shipping and even final mile delivery, we have the know-how to tackle logistics challenges of all shapes and sizes.

Our full list of services includes:

• White glove delivery
• Fast and secure expedited freight shipping
• One-on-one consulting sessions with logistics experts
• And more

Call us today at (866) 353-7178 or submit a contact form online. We’re ready to assist you with your entrepreneurial endeavors.