FTL vs. LTL Freight: What's the Difference?
When your business needs to ship freight, one of the first decisions is whether to use Full Truckload (FTL) or Less-Than-Truckload (LTL) transportation.
Both options have advantages, and the right choice depends on your shipment size, freight characteristics, destination, timing, and budget.
What Is FTL?
FTL (Full Truckload) transportation is generally used when a shipment requires a substantial portion of a truck or dedicated truck capacity. FTL is often a good option when:
- You have a large shipment
- You need dedicated capacity
- Your freight is time-sensitive
- You want more direct transportation
- Minimizing handling is important
Because FTL shipments generally move more directly, they may have fewer stops than LTL shipments.
What Is LTL?
LTL (Less-Than-Truckload) transportation is designed for shipments that don't require an entire truck. Multiple customers' shipments can share space on the same truck and move through a network of terminals and transportation routes.
LTL can be useful for businesses shipping smaller quantities, particularly palletized freight.
Which Is Cheaper?
There isn't one answer. For a small shipment, LTL may be more economical because you're paying for only part of the truck. For a larger shipment, FTL may become more economical than paying LTL rates across multiple pallets. The actual cost depends on factors such as:
- Weight
- Dimensions
- Freight class
- Origin and destination
- Pickup date
- Equipment
- Market conditions
Why Freight Class Matters for LTL
Freight classification is an important component of LTL transportation. The National Motor Freight Traffic Association (NMFTA) develops the National Motor Freight Classification (NMFC), which provides a standardized classification system used in the LTL industry. Shippers should provide accurate information about their freight to help avoid unexpected adjustments.
Which Option Should You Choose?
As a general rule:
FTL may make sense when your shipment is large, requires dedicated capacity, or needs direct transportation.
LTL may make sense when your shipment is smaller and doesn't justify an entire truck.
However, comparing both options can sometimes uncover savings.
FTL and LTL are both useful transportation solutions. The right choice depends on the specific shipment rather than simply choosing one method for every load. A freight broker can help compare available transportation options and determine which solution best fits your shipment requirements.
At Value Transports, we help shippers coordinate both FTL and LTL transportation based on their freight needs. Have a shipment you need to move? Contact Value Transports for help finding a transportation solution.