The North American less-than-truckload (LTL) market plays a vital role in the modern transportation landscape. It reached a value of USD 84.6 billion in 2024 and is projected to grow at a steady 6.1% CAGR through 2030, according to Grand View Research. But what does this shipping method consist of?
At Trans-Inter Logistik, we specialize in supporting businesses of all sizes to move goods efficiently across Canada, the U.S., Mexico, and beyond. In this guide, we’ll help you fully understand the meaning of LTL trucking, how it works, and when it’s the best fit for your operations.
What Does LTL Trucking Mean?
LTL (Less-Than-Truckload) trucking is a type of freight shipping where multiple shippers share space on the same trailer. It’s used when you don’t have enough freight to fill a full truck.
Unlike Full Truckload (FTL) shipping, where one customer fills the entire trailer, LTL lets several smaller freight shipments travel together. This saves money, reduces the carbon footprint, and makes better use of trailer space. LTL is popular across Canada, the U.S., and Mexico, especially for companies managing smaller palletized loads.
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How Does the LTL Trucking Process Work?
The LTL shipping process is designed to move smaller freight loads efficiently by sharing trailer space among multiple shippers. Here’s how it works:
- Pickup: An LTL driver collects your palletized freight, often from a warehouse or business location. Your shipment must be properly labeled, shrink-wrapped. It will be accompanied by an official document that outlines the shipment details, known as the bill of lading.
- Consolidation at Terminals: Your freight is taken to a nearby local terminal, where it’s grouped with other shipments heading in the same direction. These terminals are part of a hub-and-spoke model, which is commonly used by major carriers.
- Linehaul: From the terminal, consolidated goods are moved through a network of distribution centers. This process is typically handled by experienced drivers operating various types of equipment (dry trailers, open platforms, etc.). Depending on the destination, the freight may be transferred once, twice, or even more before reaching its target region.
- Final Delivery: Once it reaches a terminal near the destination, the freight is dispatched for last mile delivery to the final consignee.
Because LTL involves multi-stop routes, delivery might take a bit longer than full truckload freight. However, it brings big cost savings. At Trans-Inter Logistik, we offset delays with optimized routing, real-time tracking, and a dedicated logistics team focused on delivering both efficiency and reliability.
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LTL vs. FTL Trucking: How to Choose the Right Freight Option
When deciding between Less-Than-Truckload (LTL) and Full Truckload (FTL) shipping, it’s essential to understand how they differ. The right choice depends on your business goals, shipment characteristics, and service expectations. Here’s a side-by-side comparison to help guide your decision:
| Feature | LTL (Less-Than-Truckload) | FTL (Full Truckload) |
| Shipment Size | Small to medium; shared space on trailer | Large; occupies full trailer |
| Cost Structure | Pay only for the space and weight used | Flat rate or per mile for exclusive use of trailer |
| Transit Time | Longer; may involve multiple stops and transfers | Faster; direct from origin to destination |
| Handling | Higher; multiple transfers increase risk of damage | Lower; freight remains untouched until delivery |
| Freight Type | Palletized freight, standard size and weight preferred | High-volume, oversized, or sensitive shipments |
| Delivery Flexibility | Suited for flexible timelines and standard freight lanes | Ideal for time-sensitive or just-in-time deliveries |
| Tracking | Available, but may be less precise due to multi-stop routes | Usually more predictable and easier to monitor |
| Packaging Needs | Strict; must be shrink-wrapped and palletized | More flexibility in packaging |
| Typical Use Case | E-commerce, retail replenishment, frequent small shipments | Bulk deliveries, high-value goods, single-destination loads |
| Carbon Efficiency | More efficient; better trailer utilization | Less efficient if not fully loaded |
Still unsure? Working with a transportation provider can help match you with the most efficient and cost-effective option. At Trans-Inter Logistik, we tailor every solution to your shipment’s size, timeline, and destination to ensure you get the best value.
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Smart Logistics: When Less-Than-Truckload Shipping is the Best Fit
LTL shipping is a go-to solution across North America for businesses that need flexible, cost-effective freight transportation. Here are common situations where LTL makes the most sense:
1. Small-to-Medium Shipments
When your freight doesn’t fill an entire shipping trailer, LTL helps you save on shipping costs by sharing space with other palletized loads. Instead of paying for a full truck, you pay only for the space and weight your shipment takes up. This is especially useful for companies managing inventory across multiple locations or making frequent moves.
2. E-Commerce and Retail Deliveries
LTL is ideal for E-Commerce businesses and retailers shipping multiple orders to stores or customers. These shipments benefit from tracking, on-time delivery, and optional liftgate service for destinations without loading docks.
3. Frequent, Scheduled Shipments with Flexible Timelines
Companies that ship regularly but don’t need full truckload freight benefit from scheduled LTL pickups. If the shipping window is flexible, LTL offers better resource utilization and lower cost per pound.
Using the right transportation provider, businesses can lock in favorable LTL rate quotes while managing accessorial fees and avoiding unnecessary delivery delays. With decades of proven experience and a deep understanding of cross-border and domestic freight movement, Trans-Inter Logistik is equipped to support businesses of all sizes with reliable, personalized logistics solutions.
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Why LTL Pays Off: Key Benefits of LTL Freight for Modern Shippers
LTL shipping offers strategic value to shippers looking to balance efficiency with affordability. Here’s why businesses in today’s transportation industry are increasingly turning to LTL:
1. Lower Costs for Smaller Loads
LTL helps reduce the cost of transportation by allowing shippers to only pay for the space and weight their freight occupies. Instead of booking an entire trailer, freight is consolidated with other handling units. By leveraging a third-party logistics provider, shippers can better manage shipment optimization. They can avoid unnecessary expenses like underutilized capacity or last-minute accessorial fees.
2. More Sustainable and Efficient Resource Use
Because LTL shipping maximizes trailer capacity through strategic consolidation, it lowers the number of trucks on the road. Many carriers now integrate intermodal freight solutions (blending truck and rail intermodal traffic) to further reduce their carbon footprint.
3. Scalable Access for Small Businesses
LTL makes professional shipping options accessible to small and mid-sized businesses without needing a dedicated fleet or deep logistics resources. Various parcel service carriers offer standard LTL along with enhancements like cargo insurance, tracking, and P&D (pickup and delivery) support.
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What to Consider and Watch Out For in LTL Freight
- Because LTL shipments move through a hub-and-spoke system, they often make multiple stops at terminals or break-bulk facilities. This can lead to longer delivery times and increased handling of goods, which raises the risk of damage or liability.
- With more frequent transfers and varied freight lanes, scheduling can become complex. That’s why real-time tracking, smart dispatch and routing software, and strong customer support are essential.
- Most LTL freight should be palletized and securely packaged in shipping containers to minimize damage and avoid accessorial fees. It is essential to follow proper size and weight requirements.
- If your freight needs include temperature-controlled shipping, intermodal shipping, or final-mile services, make sure your carrier can support those requirements.
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How to Choose the Right LTL Carrier or Partner
- A dependable LTL transportation service should offer consistent line hauling, competitive pricing, and strong operational support. Experienced freight consolidators can offer specialized services such as partial truckload or high-volume multi-stop with stop pay lanes.
- A carrier with robust dispatch and routing software, route optimization tools, and quick access to ratecon documents will help you stay on schedule and within budget.
Questions to Ask an LTL Carrier Before You Commit
- Do you offer support for partial truckload shipping and specialized freight like hazardous materials or oversized loads?
- How does your logistics team manage delays or disruptions?
- What’s your standard equipment? Do you use modern trucks?
- How do you handle international shipments and customs procedures?
A reliable LTL partner should offer more than just capacity; they should bring clarity, technology, and support to every shipping guide and lane. The right choice ensures fewer delays, clearer communication, and more cost-efficient freight movement.
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Frequently Asked Questions About LTL Shipping
What is the minimum weight for LTL shipping?
LTL shipments typically start at 150 pounds. Anything lighter might be more cost-effective with a parcel carrier, while heavier freight can qualify for partial truckload or even FTL if volume and destination align. LTL is ideal for palletized freight that doesn’t fill an entire dry van trailer.
Is LTL really cheaper than FTL?
Yes, LTL is usually more affordable when you’re shipping smaller loads. You only pay for the space and weight your freight uses, not the entire trailer. However, if speed or liability is a major concern, FTL may be more cost-effective in the long run.
How do I track an LTL shipment?
Most LTL carriers offer real-time tracking through a transportation management system (TMS) or via their online customer-support portals. You can track your freight using a PRO number or a bill of lading number.
Trans-Inter Logistik: Your logistics partner across North America
With over 25 years of experience, Trans-Inter Logistik delivers customized logistics solutions that drive efficiency and productivity for businesses of all sizes. We specialize in domestic and cross-border transport throughout Canada, the U.S., and Mexico, but our global partner network also enables seamless access to international markets.
Our services include LTL, FTL, intermodal, air, and maritime transportation, along with supply chain optimization and customs coordination. With a commitment to precision, transparency, and operational excellence, we ensure your freight moves smoothly and on time.
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