Things to know before you ship
Less-than-truckload (LTL) freight shipping is often described as the middle ground between parcel and full truckload. While that’s an accurate way to think about the service, it doesn’t capture its full value.
LTL is more than a way to move smaller shipments. Used correctly, it can be one of the most flexible and cost-effective parts of a shipping strategy.
What is LTL?
In transportation, LTL stands for Less-Than-Truckload. It’s a freight shipping model where multiple shippers share space on the same trailer. Instead of paying for an entire trailer, you pay only for the space your freight occupies.
When to use LTL services
Many companies decide to ship LTL based on size alone. While LTL is generally best for palletized shipments between 150 and 15,000 pounds, there are other factors to consider.
LTL makes sense when:
You’re shipping multiple smaller orders across regions
You want to avoid paying for unused trailer space
You’re replenishing retail, distribution or dealer networks
However, it may not be ideal when:
Your freight is extremely time-sensitive
It’s high-risk or high-value with handling concerns
You’re moving high-density freight that could justify partial truckload
The goal isn’t to use LTL for everything. Instead, you should compare LTL to other solutions like parcel and full truckload to understand what works best.
These resources can help:
Understanding Capacity Tradeoffs
How freight moves through an LTL network
To better understand how LTL works, it helps to look at the network behind it. Unlike full truckload shipping, where freight moves directly from origin to destination in the same trailer, LTL shipments move through a coordinated network in what is often called a hub-and-spoke model.
Here’s how it usually works:
Pickup and first service center. A local driver collects your freight and brings it to a nearby service center.
Cross-docking. At the service center, freight is unloaded, sorted by destination and reloaded into outbound trailers. This process is known as cross-docking.
Linehaul movement. Loaded trailers move between major service centers, getting freight closer to its final delivery point.
Delivery. At the destination service center, freight is sorted again and delivered locally.
Depending on the distance and your carrier’s specific network structure, a shipment may pass through several service centers before reaching the destination. Each handling point helps move shipments efficiently and economically, but the process also introduces risk.
Preventing damage and delays
Every transfer increases the chance of damage, and delays at service centers or during linehaul can impact transit times. Weather, seasonal demand and network congestion also affect reliability.
Proper packaging is the first line of defense. Use sturdy pallets, distribute weight evenly and secure freight with shrink wrap or banding. Adding corner protectors and labeling pallets on multiple sides further reduces the risk of damage.
Another factor to consider is insurance and liability. Talk with your logistics partner to understand your options. Learn more about LTL cargo security.
How pricing works
Pricing can be confusing at first because there are several factors that affect LTL rates. Carriers look at a combination of shipment characteristics (size, weight, density, etc.) and operational considerations (distance, lane and fuel surcharges) when calculating a rate.
The carrier’s network and experience also play a big role. Factors like service center locations, linehaul routes, available capacity and how often they handle your type of freight can all influence the rate offered.
Avoiding hidden costs
Unexpected charges in LTL shipping often come down to missing or inaccurate details. In most cases, those differences come from additional services that were not included when the shipment was first priced. For example, if residential delivery was not disclosed, a liftgate was needed unexpectedly or appointments are required and weren’t set at booking, you’ll get charged an accessorial fee to add that service.
Freight inspections can also affect pricing. If the carrier measures the shipment and finds different dimensions or weight than what was listed, the shipment may be reweighed or reclassified.
Taking a few extra minutes to confirm the shipment details upfront can help ensure the rate you see is the rate you pay.
Download our LTL pricing eBook for more information.
Choosing the right logistics partner
The quality of your LTL experience depends heavily on who manages it. Rates matter, but they are only one part of the equation. Network coverage, service reliability and technology all play a role in how smooth your experience is.
If you’re evaluating providers, it helps to understand both what to look for in an LTL carrier and how different types of LTL carriers operate. Those factors often influence transit times, pricing structures and overall reliability.
Taking the time to compare options can help ensure your LTL strategy supports your long-term shipping needs.
Building a long-term strategy
For companies that ship regularly, LTL works best when it becomes part of a broader transportation strategy instead of a shipment-by-shipment decision. As shipping volumes grow, three areas are especially important to consider: scaling your operations, ensuring reliable capacity and managing pricing effectively.
Scalability
For growing companies, LTL can play an important role in expansion. It allows freight to move efficiently between distribution centers, suppliers and customers without needing full truckload volume for every order. Our guide on how businesses grow with LTL explores some of the ways companies use this solution to scale their operations.
Capacity options
While LTL networks are designed to consolidate freight from multiple shippers, space can still tighten during peak seasons or periods of high demand. Planning ahead and having contingency plans for finding LTL capacity can help avoid disruptions.
Pricing strategy
Growth also creates opportunities to change how you manage LTL costs. High-volume lanes or frequent shipments may make it possible to negotiate better rates or take advantage of dynamic pricing.
It can also give you the flexibility to mix LTL pricing models so each part of your supply chain is optimized for your needs and budget.
Let’s discuss your LTL plans
Less-than-truckload shipping may seem complicated at first, but understanding how it works, where risk comes in and how pricing and networks operate makes it much easier to manage. By approaching LTL strategically and planning for growth, you can turn it into a reliable, cost-effective tool that keeps your supply chain moving smoothly and supports your business goals.
With more than 100 years of LTL experience, ArcBest is uniquely positioned to help you find the best option for your shipments. LTL service is available through our industry-leading LTL carrier ABF Freight® and our network of vetted LTL carriers.
Want to talk about your LTL supply chain? Contact us to get started.
