LTL
Less-Than-Truckload: shipments that don't fill a full trailer and share space with other shippers' freight.
LTL in Practice
Freight Class Drives the Rate
Because multiple shippers share the trailer, LTL pricing depends heavily on freight class, which accounts for how much space a shipment takes relative to its weight and how easy it is to handle alongside other freight.
Freight Moves Through Terminals
LTL shipments typically pass through one or more terminals where freight is consolidated, sorted, and reloaded onto different trailers headed toward final delivery, which is different from a direct point-to-point [full truckload](/glossary/ftl) run.
Multiple Shippers Share Liability Exposure
Because LTL freight travels loaded and unloaded alongside other shippers' goods multiple times, it faces more handling touches than a sealed full truckload trailer, which is part of why LTL claims for damage are more common.
LTL: What It Means and Why It Matters
LTL freight runs on a fundamentally different model than full truckload, since a single trailer carries multiple shippers' freight moving through a network of terminals rather than going straight from one dock to another. That network structure is exactly why LTL pricing, transit times, and freight class rules exist in the first place, and it's worth understanding for any carrier considering whether LTL freight fits their equipment and operation.
How LTL Actually Works
LTL, or less-than-truckload, freight consists of shipments too small to fill an entire trailer on their own, so multiple shippers' freight is consolidated into one trailer to use the space efficiently. This usually runs through a hub-and-spoke network, where freight is picked up locally, brought to a terminal, sorted and combined with other shipments headed in a similar direction, then moved again, sometimes through more than one terminal, before final delivery.
A Practical Example
A shipper needs to move five pallets, far short of a full 53 foot trailer's capacity. Rather than paying for an entire truckload, they book an LTL shipment, and a carrier consolidates those five pallets with other shippers' freight heading a similar direction, filling the trailer efficiently with multiple customers' goods.
The shipper pays based on the freight's class and weight rather than for the whole trailer, which is significantly cheaper for a small shipment. In exchange, the freight typically takes longer to arrive than a direct full truckload run would, since it may pass through one or more terminals along the way.
Why LTL Matters for Carriers and Shippers
LTL makes shipping economical for businesses that don't have enough freight to fill a full trailer on a regular basis, opening up freight movement to owner-operators and smaller shippers who would otherwise overpay for unused trailer space. For carriers, LTL requires different equipment, terminal infrastructure, and freight handling processes than full truckload, which is why most carriers specialize in one model or the other rather than running both.
Common LTL Mistakes
The most common mistake shippers make is misjudging a shipment's freight class or dimensions, which leads to a reclassification and a higher bill after pickup. The second is underestimating LTL transit times, since freight moving through multiple terminals generally takes longer and is less predictable than a direct full truckload delivery.
Related Calculators
Related Freight & Logistics Terms
Carriers on LTL
“LTL freight rewards patience and good freight class knowledge. Once I understood the terminal network, the transit times made a lot more sense to my customers too.”
“I switched from LTL to full truckload freight for the predictability. Less handling, fewer damage claims, and a much simpler rate to quote.”