FTL vs. LTL Freight Shipping

What's in this article?

When shipping freight, there are two main options: FTL and LTL. Both have benefits and drawbacks, so deciding which option is right for your business can be difficult.

In this article, we will compare and contrast FTL vs. LTL freight shipping so that you can make an informed decision about which option is best for you.

FTL and LTL Explained

FTL freight shipping

FTL shipping stands for Full Truck Load shipping, which means that the shipper uses the entire space in the truck to ship their product. This type of shipping is typically used for large shipments that weigh over 15,000 pounds.

FTL freight can be shipped via dry van trailers, reefers, flatbeds, and intermodal containers. FTL shipping is a great option for businesses that must transport large or large quantities of items at once.

LTL freight shipping

LTL shipping, or Less-than-Truck Load shipping, is a type of freight shipping in which businesses ship smaller loads that don't fill an entire truck.

LTL shipments are generally 500 to 15,000 pounds. For LTL shipments, businesses only pay for the portion of the truck that their shipment takes up.

LTL shipping is a good option for businesses that don't have enough freight volume to fill an entire truck but more than what can be shipped via a parcel carrier.

LTL shipping is also a good option for businesses that need to ship freight regularly but don't have the volume to justify shipping via full-truckload (FTL).

Choosing between FTL and LTL Freight Shipping

The shipping process can be complex, and there are many factors to consider which reflect the key differences between the two freight shipping options.

Here are seven key factors businesses should evaluate when choosing between FTL and LTL freight shipping services:

1) Shipping volume

If you have a large freight volume, it will make more sense to choose an FTL carrier, as you would be able to fill up an entire truck and use the carrier's full capabilities. On the other hand, if you have a smaller volume of freight, then an LTL carrier would be a better option.

One thing to keep in mind is that your shipping volume can fluctuate over time.

For example, you may have a large freight volume during peak season but a smaller volume during the off-season. In such cases, it would be helpful to have both FTL and LTL freight shipping services at your disposal.

2) Shipping distance

If you're shipping freight over long distances, then FTL is usually the better option, as full-truckload freight carriers typically have higher average speeds than LTL carriers. Your freight will reach its destination faster when you choose FTL.

However, LTL may be a better option if you're shipping freight over shorter distances, as LTL carriers typically have lower fuel costs than FTL carriers. This means that choosing LTL can help you save money on your shipping costs.

3) Delivery time

FTL shipments typically take less time to deliver than LTL shipments because they don't have to make as many stops along the way. As a result, full-truckload freight is typically delivered within two to five days, while LTL shipments can take up to seven days or more.

If you need your shipment delivered quickly, FTL is usually the best option. However, LTL may be the better choice if you have ample time and are looking for a cost-effective solution.

Keep in mind that delivery times for both shipping methods can vary depending on the distance your shipment travels.

4) Shipping costs

In general, FTL shipping tends to be more expensive than LTL shipping, because, with FTL shipping, you are paying for the entire truckload, regardless of how much space your shipment takes up.

On the other hand, with LTL shipping, you are only paying for the space your shipment occupies on the truck. In addition, FTL shipping typically requires a higher minimum weight to qualify for the service.

However, there can be some cost advantages to FTL shipping over LTL shipping. For example, if you have a very large or very heavy shipment, FTL shipping may be the only option available to you.

In addition, if you are shipping a time-sensitive shipment that needs to arrive quickly, FTL shipping may be your best option, despite the higher cost.

5) Product type

Are you shipping a single load or bulky, sometimes uniquely-shaped freight? If you have large or oddly shaped freight, FTL shipping may be your best option because it allows you to utilize the entire space in the truck.

On the other hand, if you have smaller and less bulky freight, LTL shipping may be a better option because it allows you to share space in the truck with other companies who are also shipping freight.

6) Shipping schedule

If you need your products delivered on an exact date, you will want to choose a shipping method that can guarantee transit times.

LTL freight services cannot provide an exact delivery date because your shipment will be consolidated with other shipments bound for the same destination. As a result, your products could make frequent stops along the way, which could delay overall transit time.

On the other hand, FTL freight services will provide you with an exact transit time as your products will not be consolidated with any other shipments. Since you will be paying for the entire truck, your products will not need to make any stops along the way.

7) Business needs

If you have a small to medium-sized business, you may want to consider destination locations and business objectives when choosing between FTL and LTL freight shipping services.

For example, your business objectives could include the time-sensitivity of the product, cost, or customer service levels.

If you have products that need to be delivered quickly, then FTL shipping might be the best option. On the other hand, if you are less concerned about time sensitivity and more concerned about cost, then LTL shipping might be a better option.

There are also different levels of customer service offered by each type of freight shipping service, so you will want to consider that as well.

Examples of Businesses That Prefer FTL or LTL Shipping

Businesses that prefer FTL

Manufacturers

Many manufacturers who need to ship large orders of products find that FTL shipping is the best option. This type of shipping can accommodate special handling requirements, and the likelihood of damage is much lower than other freight loads.

Plus, FTL shipping gives manufacturers a great way to save on costs.

Construction companies

With FTL shipping, a construction company can ship large, heavy items that need to get to the job site quickly. This type of shipping is perfect for construction companies needing cargo transportation and a broader window for delivery.

In addition, FTL shipping is a great option for those who need their materials and equipment delivered on time and in one piece.

Wholesalers

FTL shipping is the best option for businesses that need to move large amounts of products quickly and efficiently. Here's why:

You can ship your products on the same business day you receive them, as FTL shipping companies have trailers already loaded and ready to go.
You don't have to worry about trailer space. FTL shipping companies have trailers specifically designed for large orders, meaning you'll be able to ship your products without worrying about whether or not they'll fit.

Businesses that prefer LTL

Businesses that manufacture or distribute products that are too large or heavy to ship via parcel carriers but too small or light to justify the cost of hiring a full truckload (FTL) carrier can benefit from using a less-than-truckload (LTL) carrier.

Here are three examples of businesses that would benefit from using an LTL carrier:

E-commerce businesses

E-commerce businesses that sell large or heavy products, such as furniture, appliances, or exercise equipment, often use LTL shipping. Here are the key reasons why:

These products are too large or heavy to be shipped via parcel carriers, such as UPS or FedEx.
Truckload shipments of these products are often less expensive than using parcel carriers.
The risk of damage is also reduced with truckload shipments, as the products are typically loaded and unloaded fewer times than parcel carriers.

Businesses that ship perishable goods

Businesses that ship perishable goods, such as food products or flowers, use LTL shipping because it is more cost-effective than shipping via FTL and parcel carriers.

LTL carriers provide special services, such as temperature-controlled trailers and liftgate service, which are industry standards for these shipments.

In addition, LTL carriers can provide accurate transit time information so businesses can plan accordingly.

Shipping via LTL is also a more eco-friendly option since it consolidates multiple shipments into one load, reducing truck emissions.

Businesses that distribute products to brick-and-mortar retail stores

Typically, these businesses are either manufacturing or wholesaling products. As a result, they likely have large inventories that need to move regularly to keep up with customer demand.

LTL shipping is a great option for these businesses because it is:

Less expensive than shipping via parcel carriers like UPS and FedEx
More flexible than full truckload (FTL) shipping
More efficient than shipping small parcels via parcel carriers

Some examples of businesses that use LTL shipping to distribute their products to retail stores include:

Furniture manufacturers and wholesalers
Appliance manufacturers and wholesalers
Electronics manufacturers and wholesalers
Clothing and footwear manufacturers and wholesalers
Toy manufacturers and wholesalers

Top Tips to Get the Most Out of FTL and LTL Shipping

To get the most benefit out of using either FTL or LTL shipping, here are seven tips:

Be mindful of the time of year

FTL rates are usually higher in the summer due to increased demand for seasonal goods. However, if your business can ship during off-peak times, you may be able to get a lower rate.

LTL rates are also seasonal but tend to be higher in the winter due to increased demand for truck space. Shipping LTL during off-peak times can help you save money.

Get multiple quotes

When shipping FTL, it's a good idea to get quotes from multiple carriers, and when shipping LTL, you can use a freight broker to get quotes from multiple carriers.

Choose the right carrier

Not all carriers are created equal. Some specialize in certain types of shipments, have different coverage areas, or may have higher rates. Choosing the right carrier for your shipment will help ensure it arrives on time and at the best rate.

Prepare your shipment

Properly preparing your shipment will help ensure it arrives safely and on time. Make sure all items are properly packaged, labeled, and secured.

Track your shipment

Once your shipment has been sent, you can track it to see where it is and when it is expected to arrive, helping you stay on top of any delays and ensure your shipment arrives on time.

Get insurance

Lastly, it's a good idea to get insurance for your shipment. Shipping insurance will protect your shipment in case of loss or damage, especially important for high-value shipments.

By following these simple tips, you can ensure that your FTL or LTL shipping experience is smooth and successful.

Final Thoughts

FTL and LTL shipping are both great options for businesses that need to ship products. However, because of their differences, choosing the best option for your particular shipment is important.

With A-1 Auto Transport, you can ensure that your shipment will be handled carefully, no matter which shipping option you choose.

We have years of experience in the shipping industry, and our team of experts is ready to help you ship your products safely and on time. Don't hesitate to get in touch with us today for a free quote!

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