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The process of transporting goods or commodities from one place to another is an immensely important part of keeping business moving around the world. Whether youโre planning to send a large shipment across the country or a smaller order to your customer down the street, understanding how different types of shipments work can help ensure your goods reach their destination quickly and safely.
If youโre wondering about the differences between โless than truckloadโ (LTL) and โfull truckloadโ (FTL) freight shipping, we’ve got you covered! In this article, we’ll explain what LTL and FTL shipments are, take a look at their advantages and distinctions, and provide optimized options to work with your shipments. Read on for more information about these two modes of transportation and learn which one is best suited for your business.
LTL shipping, also known as “less than truckload” shipping, is a way for small businesses to ship their products without investing in the cost of a full-service trucking company. It removes the need for expensive long-haul freight services, allowing you to use smaller carriers. This type of shipment consists of multiple small shipments combined into one “truckload,โ therefore reducing costs and increasing efficiency.
The rate of the shipment is determined by the shipment’s weight, size, shape, and classification, as well as delivery time requirements. Itโs an ideal option for smaller businesses or small shipments that gets the job done while keeping costs low and efficiency high.
LTL shipping offers many advantages for businesses transporting freight, some of which arenโt immediately obvious. While you may be considering a range of options for a small shipment, including parcel shipping, LTL shipping, and FTL shipping, LTL has quite a few great qualities to boast about. Some of the advantages of LTL shipping include the following:
Full truckload shipping, or FTL shipping, is when a full truckload of goods from a single sender is moved from one point to another in one go, usually at cost-efficient rates. FTL shipping can be used to transport large and heavy items, as well as bulk substances like food and raw materials. Many times, this type of shipping requires the use of a special oversized or overweight vehicle due to the size and weight of the freight. FTL shipping has become increasingly popular among businesses that need larger shipments on a time-sensitive basis, as itโs more cost-efficient and reliable for them than other options.
Larger businesses or those with a tight delivery deadline, such as large ecommerce brands, manufacturing companies, and logistics centers, are opting for FTL shipping. Some of the advantages of FTL shipping include:
Freight class is a numeric code that identifies the shipping and storage needs of your shipment, typically determined by its weight, density, value, and packaging. Knowing your freight class helps the carrier determine which method of delivery to offer for your shipping needs. Freight carriers work on this basis to ensure efficient distribution and help provide lower costs to merchants. If your freight class is accurately identified and assigned, it can help speed up processing times while maintaining a high quality of service.
When it comes to freight shipping, you have two major options – LTL shipping and FTL shipping. Although both services involve a truck carrying goods from point A to point B, there are quite a few differences between them. Deciding which option is most suitable for your business depends on several factors, such as the size of your shipments, the urgency of delivery, budget constraints, and more. Understanding the main differences between LTL and FTL shipping will help you make the right choice when deciding how to send your merchandise.
LTL shipping is more economical for small shipments than FTL, as the cost of using a truck is distributed among multiple shippers. Conversely, FTL entails the entire use of a truck and therefore costs more, which may actually be a cost-saving option for larger businesses that have large loads to send frequently. This cost difference will be most obvious to smaller businesses or low-volume businesses that may not have many items to ship or may not ship as frequently, making choosing the correct type of freight even more important.
LTL shipments are usually smaller than FTL shipments, with a weight capacity of between 150 and 15,000 pounds. In comparison, FTL shipments can weigh up to 45,000 pounds or more. To make the best shipping choice, businesses with smaller shipments should consider LTL, and those with larger shipments or denser, heavier products should go for FTL.
Transit time is another key factor to consider when choosing between LTL and FTL shipping. LTL shipments tend to take longer to arrive at their destination than FTL shipments because they require additional stops and handling. This is because LTL shipments need to be consolidated with other shipments to fill a truck. FTL shipments go directly from the pickup location to the delivery location without any stops in between. Therefore, businesses with time-sensitive shipments may prefer FTL shipping.
Although LTL shipments typically require less handling than parcel shipments, LTL shipments also involve more handling than FTL shipments, increasing the risk of damage. FTL shipments are typically loaded and unloaded using specialized equipment, decreasing the risk of damage when compared to LTL.
To determine the best shipping option, consider factors such as shipment size, transit time requirements, and budget. LTL shipping is a good choice for smaller shipments that do not require a full truck. FTL shipping is better suited for high-volume businesses, larger shipments, high-value products, or those requiring special handling.
Prior to working with a 3PL provider for LTL and FTL shipments, it’s important to understand their operating style. Generally, they don’t own trucks and instead collaborate with carriers in providing shipping services. Some 3PL providers, however, do have their own trucks and other assets, which creates extra flexibility in the shipping process. The role of a 3PL is to make sure that goods get from you to storage and then to your customer, or directly from you to your customer, as quickly, safely and efficiently as possible. By taking advantage of their expertise, resources, and industry connections, a 3PL provider can help optimize your shipping options and reduce costs along the way.
The main way that 3PL companies help with LTL and FTL shipping is by letting you tap into their existing agreement with their preferred carriers. By passing LTL and FTL shipments through a single carrier, they can earn significant discounts on shipping and freight rates – well in excess of what you might do with your own company’s internal shipping volume. 3PLs can then pass some or all of this discount to your company. However, it is important to note that they generally don’t pass all of the discount, so they can make a profit off of the freight as well.
No matter how large or small your business, or how much freight you have to ship (including international freight forwarding), Warehousing and Fulfillment can help you find the perfect fit. From storage and warehousing to pick and pack to shipping and freight, weโve got the inside track on the very best services for your business in every area of the country. Get in touch with us to start finding the right LTL and FTL shipping solutions for your business today!
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