Less-Than-Truckload (LTL) is the freight category for shipments smaller than a full truck.
Detailed Definition
LTL carriers combine freight from many shippers in one trailer and move it through a network of terminals, often described as hub and spoke: local pickup and delivery routes feed terminals, and linehaul moves freight between them. LTL usually costs more per pallet than a full truckload but less than paying for a whole trailer when you ship only a few pallets. Rates typically depend on freight class, weight, distance, accessorials and fuel surcharge.
How LTL pricing works
Many LTL tariffs price shipments by freight class and weight, with lower rates per hundredweight as weight increases. Freight class comes from the National Motor Freight Classification, maintained by NMFTA, and reflects density, handling, stowability and liability. Accessorial charges are added for services such as liftgate, residential or limited-access delivery, inside delivery and appointments. Carriers may reweigh and reinspect freight and bill corrections if the declared class or weight is wrong. Accurate dimensions on the bill of lading help avoid reclassification, because density depends on size as well as weight.
Preparing pallets for LTL handling
LTL freight is handled more than truckload freight. It crosses docks at terminals and may be stacked next to or under other shippers' goods.
- Use sound pallets sized to the load, with no overhang.
- Stretch wrap or band the load to the pallet and protect corners.
- Label every handling unit and match counts on the bill of lading.
- Measure and weigh accurately, since density affects class.
- Mark freight as do not stack only when needed, as carriers may charge for it.
Authoritative Sources
- American Trucking Associations (ATA): the largest national trade association for the US trucking industry.
- Transportation Intermediaries Association (TIA): the trade association representing US freight intermediaries and 3PL operators.
Related Glossary Terms
Frequently Asked Questions
When does it make sense to switch from LTL to truckload?
There is no fixed break point. As pallet count and weight rise, LTL charges can approach or exceed a truckload or partial truckload rate on the same lane, especially for low-density freight. Shippers usually compare quotes for LTL, volume LTL, partial truckload and full truckload once shipments reach several pallets or a large share of trailer space. Transit time, handling risk and delivery requirements also factor into the decision.
Why did my LTL invoice change after pickup?
Common reasons include a reweigh that found more weight than declared, an inspection that changed the freight class or found different dimensions, and accessorial services that were not on the original quote, such as liftgate, limited access or redelivery. Fuel surcharges also move with fuel price indexes. Check the carrier's inspection report or photos, compare them with your bill of lading, and dispute errors promptly under the carrier's rules.