LTL Shipping 101: Everything You Need to Know About Less-Than-Truckload Shipping
What Is LTL Shipping?
Less-Than-Truckload (LTL) shipping is a method of transporting freight that doesn’t require a full trailer. Instead of paying for an entire 53-foot truck, you share trailer space with other shippers — and only pay for the space your freight actually uses.
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Think of it like ride-sharing, but for pallets. Your freight gets picked up, consolidated with other shipments heading in the same direction, and delivered to its destination. You save money because you’re splitting the cost of the truck with other shippers.
When Should You Use LTL Shipping?
LTL makes sense when:
- Your shipment is 1-10 pallets (roughly 150 to 15,000 lbs)
- You don’t need the entire truck — your freight takes up less than half the trailer
- Cost matters more than speed — LTL is cheaper than FTL for smaller shipments, though transit times are longer
- You ship regularly but not in full truckloads — manufacturers, distributors, and ecommerce businesses often fall into this category
If your freight consistently fills more than half a trailer (or weighs over 15,000 lbs), full truckload (FTL) shipping is usually more cost-effective.
How LTL Shipping Works — Step by Step
Step 1: Get a Quote
You provide shipment details — origin, destination, weight, dimensions, and freight class. The carrier (or your shipping platform) returns a rate based on these factors. Getting quotes from multiple carriers is important because rates vary significantly.
Step 2: Book the Shipment
Once you accept a rate, you book the pickup. You’ll receive a Bill of Lading (BOL) — the essential document that travels with your freight and describes what’s being shipped.
Step 3: Pickup
The carrier sends a truck to your location (warehouse, dock, or business) at the scheduled time. Your freight is loaded and the driver signs the BOL.
Step 4: Transit & Consolidation
Here’s where LTL differs from FTL. Your freight goes to a carrier terminal, where it’s consolidated with other shipments. It may pass through multiple terminals (called “hubs”) on the way to its destination. This hub-and-spoke model is why LTL takes longer than FTL — but it’s also why it costs less.
Step 5: Delivery
The carrier delivers your freight to the destination. The receiver inspects the shipment, signs the delivery receipt, and notes any damage if applicable. This document becomes the Proof of Delivery (POD).
Key Terms You Need to Know
| Term | What It Means |
|---|---|
| BOL (Bill of Lading) | The shipping contract between you and the carrier. Lists what’s being shipped, where it’s going, and the agreed terms. |
| Freight Class | A classification (50-500) based on density, handling, liability, and stowability. Determines your rate. Lower class = cheaper. |
| NMFC Code | National Motor Freight Classification code assigned to your product type. Used to determine freight class. |
| PRO Number | The carrier’s tracking number for your shipment. |
| POD (Proof of Delivery) | Document confirming your freight was delivered and in what condition. |
| Accessorials | Extra services like liftgate delivery, residential delivery, inside delivery, or limited access. These add charges to your base rate. |
| CWT (Hundredweight) | Pricing unit. LTL rates are often quoted per 100 lbs (CWT). |
What Affects LTL Shipping Costs?
Understanding what drives your rate helps you control costs:
1. Freight Class
The single biggest factor. Class 50 (dense, easy-to-handle freight like steel) is the cheapest. Class 500 (light, bulky, fragile items like ping pong balls) is the most expensive. Getting your freight class right is critical — misclassification leads to reclassification fees.
2. Weight
Heavier shipments cost more in total, but the per-pound rate often decreases as weight increases. There are “break points” where it’s actually cheaper to ship a slightly heavier load.
3. Distance
Longer hauls cost more, but the per-mile rate typically decreases with distance. A 2,000-mile shipment doesn’t cost twice as much as a 1,000-mile shipment.
4. Dimensions
Carriers increasingly use dimensional pricing. If your freight is light but takes up a lot of space, you’ll pay more. Efficient packaging matters.
5. Accessorials
Liftgate delivery ($75-150), residential delivery ($75-125), inside delivery ($100-200), limited access ($50-150) — these add up fast. Know which ones you need before you quote to avoid surprise charges.
6. Lane & Market Conditions
Shipping rates on popular lanes (e.g., LA to Chicago) are more competitive than remote or less-traveled routes. Rates also fluctuate with demand — peak season (Q4) is typically more expensive.
How to Save Money on LTL Shipping
- Get your freight class right. Misclassification is the #1 cause of unexpected charges. Use an NMFC lookup tool or ask your carrier.
- Compare carriers. Rates vary 20-40% between carriers for the same lane. Always get multiple quotes.
- Optimize packaging. Reduce empty space. Denser pallets = lower freight class = lower cost.
- Know your accessorials upfront. Requesting a liftgate at delivery instead of at booking often costs more.
- Consolidate shipments. Combine multiple small shipments into fewer, larger ones when possible.
- Use a shipping platform. Platforms like EagleLoad let you compare rates from multiple carriers instantly, ensuring you never overpay.
Common LTL Shipping Mistakes
- Wrong freight class: Leads to carrier reclassification and unexpected invoices
- Poor packaging: Damaged freight = claims, delays, and unhappy customers
- Not comparing carriers: Using one carrier for everything almost guarantees you’re overpaying on some lanes
- Ignoring accessorials: That “cheap” rate becomes expensive when you add liftgate + residential + inside delivery
- No tracking: If you can’t tell your customer where their freight is, they’ll find a shipper who can
LTL vs. Other Shipping Methods
| Method | Best For | Typical Cost | Transit Time |
|---|---|---|---|
| LTL | 1-10 pallets, 150-15,000 lbs | $200-$2,000+ | 2-7 business days |
| FTL | 10+ pallets or 15,000+ lbs | $1,500-$5,000+ | 1-5 business days |
| Parcel | Under 150 lbs, individual boxes | $10-$200 | 1-5 business days |
| Partial Truckload | 6-12 pallets, 8,000-25,000 lbs | $800-$3,000+ | 1-5 business days |
Getting Started with LTL
If you’re new to LTL shipping, the easiest way to start is with a platform that lets you compare rates, book shipments, and track deliveries in one place — without needing to call carriers or juggle spreadsheets.
Try EagleLoad free — get instant LTL quotes from multiple carriers, book in under a minute, and track everything from a single dashboard. No credit card required.
Sources: FMCSA, SMC3 (NMFC Classifications), Transportation Intermediaries Association
