The efficient and timely delivery requires a careful choice of the suitable shipping method. Two most common types are full truckload (FTL) and less-than-truckload (LTL). They are used for different logistics requirements and cargo volumes and types. In the article we explore the main aspects of these methods, their differences, and an analysis to make a right choice between two options.
FTL and LTL Meaning
Full truckload and less-than-truckload terms describe different types of cargo transportation. Understanding their aspects and differences helps handle shipping needs, optimize costs, and improve overall efficiency of the delivery process. The main difference between FTL and LTL -th is the needed truck space for the shipping.
In particular, FTL is a shipping option with an entire truck dedicated to one shipment. It’s suitable for large cargo volumes – over 10,000 pounds or when the goods are sufficient to fill a whole truck. The main benefits of this method include:
- Dedicated truck. The shipment doesn’t share with other goods of other shippers.
- Faster transit times. The truck travels directly from origin to destination with no additional stops.
- Reduced handling. FTL is a safer option for fragile or high-value items because it involves fewer handling activities and does not involve goods from other shippers.
- Cost efficiency. FTL can be more expensive compared to LTL. Still, it’s cost-effective in large volumes amid better truck’s space and capacity utilization.
Less-than-truckload is a transportation service that is used for smaller shipments that doesn’t need the entire truck space. Usually, the cargo weight is 150-10,000 pounds. LTL foresees combining multiple shipments from different businesses.
This method provides such advantages:
- Cost sharing. The overall cost is divided among multiple shippers who share the truck’s space.
- Flexibility. LTL offers more frequent scheduling options, which is beneficial for businesses with less predictable shipping needs.
- Varied service options. This method often provides additional services, such as liftgate delivery, inside pickup, and delivery. It’s an advantage for specific logic requirements.
These main aspects of LTL and FTL shipments help to choose the most suitable and cost-effective delivery option. It’s necessary to consider shipping volumes, timelines, and budget.
How do FTL and LTL Freight Shipping work?
Full truckload shipping involves several vital steps ensuring efficient and secure transportation of large-volume shipments.
- Booking. The shipper books transportation, providing information of the cargo type and quality, the pickup and delivery locations, and the needed time frame.
- Loading. The shipper is responsible for the cargo packaging, loading and its correct positioning to prevent shifting.
- Transportation. After the truck loading, it starts the delivery to the destination. The truck is not shared with other shipments, so it takes the direct route, minimizing transit time.
- Delivery. Upon arrival, the cargo is unloaded and checked by the receiver for any damages.
- Documentation. Such agreements as the bill of lading and delivery receipt are important to ensure transparency and tracking of the delivery.
Less-than-truckload shipping foresees the delivery of multiple shipments from different customers with one truck.
- Booking. The shipper arranges transportation on a basis of such information as the cargo weight and dimensions.
- Pickup. The carrier collects the cargo, stopping at several terminals to pick up all arranged shipments.
- Consolidation. The carrier combines the various shipments onto one truck for the full usage of the truck’s capacity and efficiency.
- Transportation. The truck delivers goods, stopping at the terminals along the route to add or remove shipments that leads to longer transit times.
- Deconsolidation. After arrival at a terminal delivery location, the goods are sorted and loaded onto local delivery trucks.
- Final delivery and documentation. The local trucks complete the final stage of the journey, delivering the cargo to the set destinations. As well as for FTL, accurate documentation, such as the bill of lading and delivery receipt, is also crucial for LTL shipping.
LTL vs FTL freight compared
Choosing whether your business needs FTL or LTL transportation can significantly impact supply efficiency and cost management. Making the best decision requires a deep understanding of their functions and differences.
| Aspect | LTL | FTL |
|---|---|---|
| Shipment weight | 150-10,000 pounds | Over 10,000 pounds |
| Cost structure | Shared among multiple suppliers | Single supplier |
| Transit time | Longer due to several stops | Faster amid direct route |
| Handling | More handling, higher damage risk | Minimal handling, lower damage risk |
| Flexibility | More frequent scheduling | Requires full truckload |
| Service options | Additional services available | Focused on bulk transport |
How to choose between LTL and FTL for your business
Deciding between these two shipping methods can be critical for supply chain optimization. You need to analyze several factors when comparing LTL vs FTL.
- Shipment size and weight. The LTL will be the most suitable option for the cargo that weighs 150-10,000 pounds and does not occupy an entire truck space. FTL is more suitable for a shipment with a larger volume or weight of over 10,000 pounds.
- Budget. Less-than-truckload method offers a cost-effective solution for smaller shipments as costs are shared among several companies. At the same time, full truckload is more expensive on a per-load basis. Still, it may be efficient, as better truck utilization lowers the cost per unit.
- Transit time. LTL can be a viable option for handling time-sensitive shipments. FTL is preferable for time-sensitive cargo as it offers direct routes.
- Damage risk. LTL foresees more handling, which increases the risk of damage or loss. Thus, it’s not the best option for fragile or high-value items. FTL includes minimal interaction with the cargo, as the shipment remains on the truck from pickup to delivery.
- Shipping frequency and flexibility. LTL offers greater flexibility with several pickups and deliveries, making it suitable for companies with varying shipment schedules. FTL is better for regular, large-volume shipments. Although less flexible, it provides a streamlined and efficient shipping process.
- Service requirements. The additional services of the less-than-truckload shipping method include liftgate delivery, inside pickup, and delivery. FTL doesn’t include the additional services, focusing on direct, bulk transportation.
- Cost calculation. Compare the costs of LTL and FTL for your specific needs, including fees.
With careful analysis of these factors, you can make an informed decision about LTL and FTL shipping methods. It will also provide that your choice aligns with the needs and goals of your business.
Conclusion
The choice of the suitable and efficient transportation option between FTL or LTL depends on various factors mentioned above. Understanding the key differences can help you enhance logistics operations and cost management. FTL is suitable for large and time-sensitive shipments, while LTL offers a cost-effective solution for smaller shipments with longer time frames.
If you seek to optimize and streamline your logistics services, LAX Freight can help! We provide full truckload freight shipping to help you achieve more success and remain competitive.
