The differences between FTL vs LTL freight

When it comes to freight shipping, two main options emerge: FTL (Full Truckload) and LTL (Less Than Truckload). The core difference lies in shipment size and how you pay.

FTL is ideal for large shipments that fill an entire truck (or most of it). You pay for the entire truckload, but benefit from a dedicated truck, shorter delivery dates, and potentially less risk of damage.

LTL shipments are more for "cost savings" for smaller shipments. Less Than Truckload shipping combines separate shipments; doesn't require a full truck. Here, you share space with other businesses, paying only for the space your freight occupies. This translates to longer delivery times due to multiple stops.

Ultimately, the best choice between FTL and LTL shipments depends on your specific needs: shipment size, budget, and delivery speed requirements.

FTL freight definition

FTL (Full Truckload) transport is intended for entrepreneurs who have to transport a large amount of goods. So large that the goods take up all the space or most of it. FTL carriers simplify the logistics of the shipping process, as the transported goods go directly from one shipper to the recipient. This simple scheme of operation makes FTL transport fast, as the supplier does not transport the goods of several customers, so its path is straightforward (it goes from point A to point B).

The lack of intermediate unloading points also means that the transported goods will not be damaged during additional reloading processes, because it goes directly, e.g. from the port to the recipient's warehouse. The speed of FTL shipments make it a perfect logistic solution for distributors of e.g. food products with a short shelf life, where a longer delivery may have a negative impact on the quality of the goods transported. FTL is also a solution for entrepreneurs who have to transport large loads of considerable weight. A customer choosing FTL transport pays for the entire cargo area.

LTL freight definition

LTL transport (Less Than Truckload) concerns goods that do not occupy the entire cargo area, but only a part of it. In logistics terminology, you can also find the name PTL (Partial Load), or groupage transport. It happens that the terms LTL and PTL are often used interchangeably. LTL shipment relies on the fact that the available cargo space is divided between the different senders. An entrepreneur who chooses LTL carrier pays for the used cargo space, so it can be more profitable than FTL transport.

It is a perfect solution for small goods, e.g. only a few pallets. A disadvantage could be the longer transport time of goods compared to FTL transport. A driver who has goods from several customers on board must take the time to deliver the goods to the designated points. It does not go directly from the hold to the warehouse, for example. However, for goods whose value does not decline with extended lead times, it does not matter.

LTL shipment is worth using when the goods are too heavy to be picked up by a courier, and too small to qualify for FTL transport. This one of the shipping methods of transport is also helps to save money; it is cost-effective when the shipment does not require fast delivery date, the goods' addressees vary widely, and smaller shipments can be packed together and placed on pallets.

FTL freight shipping vs LTL freight shipping comparison

Understanding the differences between FTL and LTL shipping is crucial for companies seeking to optimize their supply chain operations.

Cost

If you’re able to put together a shipment that’s large enough to fill a truck (or almost fill a truck), FTL is more "cost savings" strategy. When you look at the cost on a per-unit basis, an FTL shipments can be cheaper, which ultimately means a lower landed cost for you. In other words, full truckload shipping offers economies of scale. These typically come into effect when you have more than six pallets or your shipment weighs more than 12,000 lbs. Of course, if you simply don’t have a large enough shipment to make the math work, LTL may be the better choice.

FTL and LTL shipments prices are also calculated differently. FTL pricing is generally fairly simple. It’s calculated at current market rates, often quoted as a rate per mile, plus any accessorials (like inside delivery) and possibly a fuel surcharge. FTL prices may be influenced by the weight of your shipment, the shipping lanes it will travel in, the season, and the location of the origin and destination points.

LTL pricing can be a little more complex, since rates will be based on the shipment’s National Motor Freight Classification (NMFC) code. The NMFC code, in turn, matches up with a shipment's freight class. Freight class is one way that carriers evaluate the “transportability” of such shipments by taking into account factors like density, handling, liability, and stowability. Freight type and class also offer carriers a standardized way to classify less-than-truckload (LTL) freight shipments, making them easier to price.

In addition to the freight class, Less Than Truckload pricing also depends on factors such as special services or handling, fuel surcharges, origin and destination, time of the year, weight, and the absolute minimum charge (AMC).

Delivery

When you need to move your goods fast, FTL shipping delivers:

• Since you’re buying the entire trailer, the only cargo in the truck is yours, and the only stops will be yours as well till the final destination.

• This means a shorter timeline — and a more predictable one, too. If you need to make a delivery appointments with a fulfillment partner, FTL can offer you greater peace of mind.

With an LTL carriers, you’ll see longer transit times, since the driver will make multiple drop-offs and pick-ups. Since there are simply more factors involved, the timeline isn’t always as precise as for FTL shipments.

Efficiency

When it time to maintain optimal efficiency in moving freight, the battle lines are drawn between FTL (full truckload) and LTL (less than truckload) services. Here's a breakdown of their strengths and weaknesses:

FTL Shipping:

• Efficiency: Wins hands down. A dedicated full truckload service for most shipments means a direct route from origin to final destination with minimal handling. This translates to faster delivery dates and lower risk of damage (since there's no extra loading/unloading at multiple stops).

• Drawbacks: Not cost-effective for smaller shipments. You pay for the entire truckload shipment, even if you only use a portion of the space.

LTL Shipping:

• Efficiency: Less efficient than FTL due to multiple stops for pickups and deliveries of other shipments (from other multiple businesses) sharing the truck. This translates to longer times to your delivery location.

• Drawbacks: Multiple handling points can increase the risk of damage.

Types of cargo transported through LTL shipping and FTL shipping

LTL shipping and FTL shipping can handle a wide assortment of cargo, but are best suited for distinctive sizes and sorts of products.

FTL Shipping (Full Stack) could be used for:

• Huge, bulky things that can fill a whole truck or most of it. Cases incorporate:

• Domestic machines

• Development materials (wood, drywall, etc.)

• Beds of wrapped up items

• Apparatus

• Vehicles

LTL Shipping (Less Than Truckload) could be used for for:

• Small shipments that don't require a full truck. Cases incorporate:

• Person boxes or beds of stock

• Furniture

• Hardware

• Development supplies (littler amounts)

• Nonperishable nourishment

Things to Consider:

• Both LTL carriers and FTL can transport delicate products, but full truck load offers a possibly lower chance of harm due to less taking care of focuses.

• For perishable or time-sensitive things (such as new nourishment), FTL's quicker conveyance times can be significant.

• There may be particular controls for transporting dangerous materials by means of LTL and FTL, so it is vital to check with the carrier in advance. 

Choose the best type of cargo for you business with AsstrA experts

The world of freight shipping involves various cargo types, and selecting the right one can significantly impact your business's efficiency and bottom line. AsstrA will tell you the differences between FTL and LTL shipping and help to choose the best option.

We offer comprehensive single-pallet transport services for various cargo types and sizes: general, high valued, heavy and oversized, liquid and bulk, dangerous and refrigerated, motor vehicles, livestock, glass and steel coils. We operate our own truck fleet and cooperate with recognized road and railway carriage, container ship operators, and airlines across Europe, Asia, Turkey and the Middle East. We provide supply-chain management and logistics project optimization, import/export cargo transport, preparation of required shipping and customs documents, warehousing, and cargo insurance. Producers need logistics solutions tailored to each item they manufacture. Minimum shipments for one truckload are 1 pallet or 5 kg.