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LTL and FTL Shipping: Which is best for you?

by Jill Quijano,
Jun 28, 2024
ltl freight service vs ftl freight service
ltl freight service vs ftl freight service

Table of Contents

Truckload freight can be shipped as Less Than Truckload (LTL) or Full Truck Load (FTL). Both kinds of shipping have their advantages, but one or the other will be the right choice for you depending on your situation. Choosing the right shipping method can lead to significant cost savings, making it crucial to understand the main differences when you’re making business decisions.

So, what are the pros and cons of LTL and FTL shipping? We take a look at both of these options and why they might (or might not) be the right choice for you.

What is Less Than Truckload (LTL) Shipping?

When what you’re sending is too large for the mail, but it’s too small to fill a whole truck, it’s called a ‘less than truckload’ freight shipment or LTL freight. These loads leave a lot of wasted space in trucks.

Every year, the market in the United States alone for less than truckload (LTL) shipping is worth more than $86 billion.

LTL freight shipments are environmentally and economically savvy — for both the carriers and the shippers, who benefit from consolidating their freight with loads from other companies. They only pay for the weight of their goods and the space they take up in the truck. It also helps them keep warehouse stocks at manageable levels.

So what difference does it make to the shippers whether they use less than truckload or full truckload shipping?

Benefits of LTL Freight Shipping

Lower costs – One of the great things about LTL shipping is that it’s more affordable. LTL carriers consolidate multiple small shipments to maximize efficiency and reduce costs. Since you don’t have to reserve space on the entire truck, the cost will be far less expensive. Sending your goods in smaller loads (partial shipments) along with goods from other companies reduces the overall costs of shipping.

Fuel efficient – On top of that, it is also better for the environment. Sending goods via partial shipments maximises the space on a truck. So you’re not sending trucks with only half a load, which isn’t very fuel efficient.

Security – When they don’t have enough goods to take up the space of a full truckload, shippers will sometimes turn to parcel services to deliver their goods. Unfortunately, parcel services don’t provide the same security as less than truckload shipping.

Parcel services don’t provide the same level of security as less-than-truckload (LTL) shipping because parcels are handled more frequently and go through multiple sorting centers. This increases the risk of damage, loss, or theft compared to LTL shipments, which typically have fewer touchpoints and more direct routes.

Flexibility – LTL shipping offers a lot more flexibility for both pick up and delivery, it allows you to transport small loads quickly instead of waiting until you have a full truckload.

Tracking – You can easily see the status of your freight with tracking and tracing options. Customers can also keep an eye on their shipments.

Disadvantages of LTL Shipments

On the other hand, there are some disadvantages to using an LTL shipment as a shipper.

▶️ Can take longer – One of the disadvantages of an LTL shipment is that it can take significantly longer for your goods to arrive. After all, the same truck has to stop at many different addresses to drop off other people’s goods along the way.

▶️ Less predictable – On top of that, you don’t exactly know how much longer it may take you. In some cases, less than truckload shipping might be as fast as full truckload shipping. In other cases, it could take twice as long or even longer.

The right transport management system can help you to nail down your estimated delivery time as much as possible, but you won’t be as certain as you would be with full truckload shipping.

▶️ Less secure than FTL shipping – Although less than truckload shipping is much safer than parcel services, it isn’t as secure as full truckload shipping. With full truckload shipping, there’s only one instance of loading and unloading.

▶️ Higher risk of damage – When many people open up a truck many times, there’s always an increased chance that one of the people involved may damage or steal some of the goods on the truck.

What is Full Truckload (FTL) Shipping?

In contrast, full truckload shipping is much simpler. FTL freight involves shipping an entire truckload of goods that belong to a single shipper. The entire truckload has only the products that belong to a single shipper. That means that you do not have to account for as much organisation or a variety of safety techniques.

Full truckload freight ensures that the shipper’s goods are the only ones on the truck, reducing the risk of damage and improving delivery times. This is usually the most economical and fastest choice if the shipper has enough freight to fill a truck. It means fewer stops and less likelihood of freight being damaged. Delivery times are better, because the whole thing is more straight-forward.

Benefits of FTL Shipments

Faster deliveries – Because the truck only holds freight for a single customer, FTL shipments travel a direct route to their destination. There’s no need to wait for other shipments too, allowing for a more straightforward and speedy delivery service.

Lesser requirements – Again, simplicity and straight forwardness are the key benefits of FTL freight services. Every shipping unit does not need to be measured or weighed, so there’s fewer requirements to deal with. Lesser restrictions also means that all types of goods can be transported, including shipment that require special handling.

Reduced risks and touchpoints – Speaking of special handling requirements, FTL shipping ensures that there are dedicated trucks for a single shipment and fewer touchpoints, minimising the risk of damage or loss by reducing handling and providing more control over the transportation environment.

More competitive rates – With FTL shipping, you pay a flat rate, allowing you to negotiate truckload costs and potentially achieve better pricing compared to paying for multiple individual shipments with parcel or LTL services.

Disadvantages of FTL Shipments

▶️ Not a good option if you’re shipping in smaller batches – FTL (Full Truckload) shipping caters to large shipments that occupy an entire truck. For those with smaller amounts of freight, it can be an inefficient and expensive choice, as they end up paying for unutilized truck space.

▶️ Driver shortages – The trucking industry already faces a shortage of qualified drivers, which can impact delivery time.

▶️ Lesser flexibility – FTL shipments require a full truckload, making it a less flexible (and expensive) option for companies with fluctuating shipping volumes.

▶️ Cost – FTL shipments typically cost more than LTL because you have to rent an entire truck, regardless of whether it’s fully load or not.

Comparing your freight options

Transvirtual offers transport solutions that take the hassle out of calculating shipping options and booking the movement of freight shipments. It allows transport companies to compare rates and delivery times from inside our app. It’s full of features that speed up delivery and lower costs – including route optimisation, so drivers will know the most efficient path from A to B.

Using a TMS can lead to significant cost savings by optimizing routes and reducing fuel costs.

For more information about how a TMS platform can help your business move freight faster and select the most efficient shipping options, get in touch with our team of transport experts today.

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