Full Truckload (TL) & Less Than Truckload (LTL) Shipping

LTL and FTL Shipping: What’s the Difference?

The terms less-than-truckload (LTL) and full-truckload (FTL) get thrown around often within the shipping and logistics community. However, newcomers may find themselves at a loss for what these terms actually mean. To clear this up, we are breaking down each term individually before directly comparing them so that you can choose the best shipping modes for your freight. Understanding the difference will help you make better freight choices.

Freight Shipping

First and foremost, it’s important to know what freight shipping actually is. The term freight shipping refers to the paid process of shipping goods by ground, sea, or air. Freight is typically composed of goods that are being transported to another location in bulk. Two subcategories that fall under the umbrella of freight shipping are less than truckload (LTL) shipments and full truckload (FTL) shipments.

Less Than Truckload (LTL) Shipping

Less than truckload freight shipments, commonly abbreviated as LTL, are shipments that exceed the size limit required to be able to ship as a single package through the mail (a parcel shipment). Despite being too large for a parcel carrier, less than truckload shipments are too small to fill an entire semi-truck trailer, leaving lots of wasted space and contributing to “empty miles.” In order for shipping to be mutually beneficial between the shippers and trucking companies, carriers often ship multiple LTL shipments together to make the trip economically sensible. This way trailers aren’t traversing our highways carrying only air.

Benefits

• Lessen environmental impact

This method of ‘carpooling’ with LTL shipments from other companies reduces the impact transportation has on the environment. Less fuel is used when fewer trucks are needed to transport the same number of total shipments.

• Decrease warehouse expenses

By adopting LTL shipping, companies relieve themselves of the stress that comes with having too much product built up in their warehouse or staged at their docks. Through shipping consistently, companies are able to keep less in their warehouse and also keep a more accurate inventory as a result.

• Minimizes costs on smaller shipments

Traditionally, the lowest rates are reserved for shippers that can fill the entire semi-truck trailer and qualify for full truckload rates. LTL shipping gives companies that aren’t able to fill an entire truck the opportunity to minimize costs by consolidating their freight with other company’s freight. With LTL shipping, companies only pay for the weight of their freight and the space it uses on the trailer.

Full Truckload (FTL or TL) Shipping

Conversely, full truckload shipments (abbreviated FTL or TL) are large enough to fill up an entire semi-truck trailer. Unlike LTL shipments which might ride alongside other shipments, FTL freight is contracted to one carrier and rides alone, meaning there don’t need to be extra stops along the way. This reduces the number of “touches” and reduces the likelihood of damages. When there is enough freight to qualify for a full truckload rate, this is usually the most economical choice.

Benefits

• Save money on larger shipments

If you have enough freight to fill an entire trailer, a FTL shipment will be the most efficient mode. It’s less expensive to ship a single FTL shipment when compared to splitting up the freight into multiple LTL shipments.

• Lower risk of damage

Shipping a full truckload means that from start to finish, your freight will remain in the same semi-truck trailer. This simplifies the transportation process and eliminates the potential risks associated with LTL shipments being handed off to other trucks along their route. Decreasing the number of “touches” freight undergoes during transport reduces risk.

• Ship products faster

When shipping FTL, the only factors considered in the truck’s route are the origin of the freight and its final destination. With LTL, there may be multiple origins and final destinations involved that can lengthen the travel time and impact delivery times as a result. FTL shipments ensure that freight is arriving as quickly as possible by traveling from point A to point B.

Which Should I Choose, LTL or FTL?

LTL and FTL shipping are both beneficial types of freight shipping. For smaller shipments that are too big to be shipped parcel, LTL shipping is often the best choice. For larger shipments that are able to completely fill or almost fill an entire truck, FTL is less expensive. Both are acceptable options when thinking about how to ship your freight, but each has specific scenarios in which they are most beneficial to the shipper.

It is always a good idea to compare the freight rates of multiple LTL or FTL carriers to choose the carrier with the best rate and service level for your shipment.

Why Should You Compare Your Freight Rates?

Comparing rates is the best method to avoid overpaying. Whether shipping LTL or FTL, different carriers will offer different freight rates and service levels and it’s important to shop around. Looking into what’s available often makes way for the discovery of less expensive rates or particular lanes that have the ability to speed up delivery. Prices constantly fluctuate and what initially seems like the better option may not be best in the end.

How Can a Transportation Management System Help?

Leveraging technology is the easiest way to ensure that you are shipping your freight most efficiently. By utilizing a transportation management system like Kuebix TMS, shippers can compare all of their negotiated and spot rates within a single platform. With the ability to compare rates instantly, shippers have the power to book confidently and quickly.

Kuebix TMS users can also leverage Community Load Match which provides complementary truckload rate assessments to ensure they’re making strategic truckload shipping decisions. Kuebix Community Load Match provides shippers with an alternative source of truckload capacity and allows carriers to fill their trucks!

Apart from acting as a vehicle for finding and booking better FTL rates, transportation management systems also simplify everyday shipping operations. Users can integrate ERP systems such as NetSuite and Microsoft Dynamics to increase operational efficiencies and remove the risk of human error. With an ERP integration, orders flow seamlessly between Kuebix and the external platform to reduce manual error and speed up operations.

Many companies also use optimization technology in their TMS to combine LTL shipments into FTL shipments for greater efficiencies and cost savings. Kuebix TMS offers a variety of advanced functionalities including Order and Route Optimizer, which optimizes shipments for maximum rate and route efficiency.

Check out this case study with Hanover Foods to learn how their utilization of Kuebix saved over $1 million in freight spend!

The Top 3 Commodities Shipped By Truck in all 50 States

The Top 3 Commodities Shipped By Truck in all 50 States

Have you ever been driving on the highway and wondered what kind of freight was on the truck beside you? Unless it’s a clearly defined Coca-Cola or retail branded truck, you probably have no clue. That’s why we’ve put together this list of the top ground freight commodity types shipped by truck in each of the 50 states! Check out the top three commodity types in your state to guess what you might be passing on the highway.

Curious about other types of freight? Check out this dashboard from explore.dot.gov

Top Three Ground Freight Commodities Transported via Truck Between Oct 2018 – September 2019 (by value & weight)

Alabama

By Value

  1. Mineral Fuels
  2. Vehicles Other than Railway
  3. Electrical Machinery

By Weight

  1. Mineral Fuels
  2. Iron and Steel
  3. Salt; Sulfur; Plaster and Cement

Alaska

By Value

  1. Iron and Steel
  2. Vehicles
  3. Electrical Machinery

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Iron and Steel
  3. Vehicles

Arizona

By Value

  1. Electrical Machinery
  2. Vegetables and Roots
  3. Computer Parts

By Weight

  1. Vegetables and Roots
  2. Fruit and Nuts
  3. Inorganic Chemicals

Arkansas

By Value

  1. Electrical Machinery
  2. Vehicles
  3. Computer Parts

By Weight

  1. Iron and Steel
  2. Electrical Machinery
  3. Computer Parts

California

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Mineral Fuels
  2. Vegetables and Roots
  3. Fruit and Nuts

Colorado

By Value

  1. Computer Parts
  2. Electrical Machinery
  3. Vehicles

By Weight

  1. Computer Parts
  2. Electrical Machinery
  3. Vegetables and Roots

Connecticut

By Value

  1. Pearls; Stones; Metals and Imitation Jewelry
  2. Zinc
  3. Electrical Machinery

By Weight

  1. Zinc and Articles
  2. Copper and Articles
  3. Sugars and Confectionery

Delaware

By Value

  1. Works of Art and Antiques
  2. Measuring and Testing Instruments
  3. Electrical Machinery

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Mineral Fuels
  3. Electrical Machinery

Florida

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Fruit and Nuts
  3. Vehicles

Georgia

By Value

  1. Electrical Machinery
  2. Vehicles
  3. Computer Parts

By Weight

  1. Beverages
  2. Sugar and Confectionery
  3. Computer Parts

Hawaii

By Value

  1. Computer Parts
  2. Measuring and Testing Instruments
  3. Electrical Machinery

By Weight

  1. Beverages
  2. Computer Parts
  3. Electrical Machinery

Idaho

By Value

  1. Vegetables and Roots
  2. Vehicles
  3. Electrical Machinery

By Weight

  1. Fruit and Nuts
  2. Preparations of Vegetables; Fruits and Nuts
  3. Vegetables and Roots

Illinois

By Value

  1. Beverages
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Beverages
  2. Mineral Fuels
  3. Electrical Machinery

Indiana

By Value

  1. Computer Parts
  2. Electrical Machinery
  3. Vehicles

By Weight

  1. Computer Parts
  2. Electrical Machinery
  3. Vehicles

Iowa

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Computer Parts
  3. Furniture

Kansas

  1. Aircraft
  2. Electrical Machinery
  3. Special Classification Provisions

By Weight

  1. Iron and Steel
  2. Computer Parts
  3. Rubber and Articles

Kentucky

By Value

  1. Computer Parts
  2. Vehicles
  3. Electrical Machinery

By Weight

  1. Computer Parts
  2. Salt; Sulfur; Plaster and Cement
  3. Vehicles

Louisiana

By Value

  1. Mineral Fuels
  2. Vehicles
  3. Iron and Steel

By Weight

  1. Mineral Fuels
  2. Salt; Sulfur; Plaster and Cement
  3. Iron and Steel

Maine

By Value

  1. Aluminum and Articles
  2. Vehicles
  3. Not Knitted or Crocheted Apparel

By Weight

  1. Aluminum and Articles
  2. Vehicles
  3. Vegetables and Roots

Maryland

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Sugars and Sugar Confectionery
  2. Salt; Sulfur; Plaster and Cement
  3. Vehicles

Massachusetts

By Value

  1. Electrical Machinery
  2. Measuring and Testing Instruments
  3. Computer Parts

By Weight

  1. Paper and Paperboard
  2. Measuring and Testing Instruments
  3. Electrical Machinery

Michigan

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Computer Parts
  3. Salt; Sulfur; Plaster and Cement

Minnesota

By Value

  1. Computer Parts
  2. Measuring and Testing Instruments
  3. Electrical Machinery

By Weight

  1. Fruit and Nuts
  2. Computer Parts
  3. Iron and Steel

Mississippi

By Value

  1. Electrical Machinery
  2. Vehicles
  3. Computer Parts

By Weight

  1. Iron and Steel
  2. Organic Chemicals
  3. Electrical Machinery

Missouri

By Value

  1. Electrical Machinery
  2. Vehicles
  3. Computer Parts

By Weight

  1. Electrical Machinery
  2. Computer Parts
  3. Glass

Montana

By Value

  1. Vehicles
  2. Tobacco
  3. Computer Parts

By Weight

  1. Vehicles
  2. Tobacco
  3. Computer Parts

Nebraska

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Iron and Steel
  2. Vehicles
  3. Inorganic Chemicals

Nevada

By Value

  1. Electrical Machinery
  2. Beverages
  3. Toys; Games and Sport Equipment

By Weight

  1. Beverages
  2. Miscellaneous Articles of Base Metals
  3. Electrical Machinery

New Hampshire

By Value

  1. Computer Parts
  2. Electrical Machinery
  3. Measuring and Testing Instruments

By Weight

  1. Computer Parts
  2. Electrical Machinery
  3. Measuring and Testing Instruments

New Jersey

By Value

  1. Electrical Machinery
  2. Measuring and Testing Instruments
  3. Cereals and Flour

By Weight

  1. Cereals and Flour
  2. Fruit and Nuts
  3. Electrical Machinery

New Mexico

By Value

  1. Measuring and Testing Instruments
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vegetables and Roots
  2. Live Animals
  3. Plastics and Articles

New York

By Value

  1. Computer Parts
  2. Electrical Machinery
  3. Beverages

By Weight

  1. Electrical Machinery
  2. Computer Parts
  3. Salt; Sulfur; Plaster and Cement

North Carolina

By Value

  1. Computer Parts
  2. Electrical machinery
  3. Plastics and Articles

By Weight

  1. Plastics and Articles
  2. Organic Chemicals
  3. Vehicles

North Dakota

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Vehicles
  2. Iron and Steel
  3. Computer Parts

Ohio

By Value

  1. Computer Parts
  2. Vehicles
  3. Electrical Machinery

By Weight

  1. Computer Parts
  2. Vehicles
  3. Electrical Machinery

Oklahoma

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Article of Iron and Steel
  3. Iron and Steel

Oregon

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Iron and Steel
  3. Vehicles

Pennsylvania

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

Rhode Island

By Value

  1. Vehicles
  2. Measuring and Testing Instruments
  3. Computer Parts

By Weight

  1. Vehicles
  2. Computer Parts
  3. Articles of Iron and Steel

South Carolina

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

South Dakota

By Value

  1. Vehicles
  2. Computer Parts
  3. Paper and Paperboard

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Paper and Paperboard
  3. Computer Parts

Tennessee

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

Texas

By Value

  1. Computer Parts
  2. Electrical Machinery
  3. Vehicles

By Weight

  1. Mineral Fuels
  2. Salt; Sulfur; Plaster and Cement
  3. Vehicles

Utah

By Value

  1. Pearls; Stones; Metals and Imitation Jewelry
  2. Vehicles
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Cocoa and Cocoa Preparations
  3. Plastics and Articles

Vermont

By Value

  1. Electrical Machinery
  2. Computer Parts
  3. Meat and Edible Offal

By Weight

  1. Electrical Machinery
  2. Meat and Edible Offal
  3. Vehicles

Virginia

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Vegetables and Roots
  3. Computer Parts

Washington

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Vehicles
  3. Wood and Articles

West Virginia

By Value

  1. Computer Parts
  2. Vehicles
  3. Special Classification Provisions

By Weight

  1. Articles of Iron and Steel
  2. Computer Parts
  3. Vehicles

Wisconsin

By Value

  1. Electrical Machinery
  2. Measuring and Testing Instruments
  3. Computer Parts

By Weight

  1. Electrical Machinery
  2. Computer Parts
  3. Vegetables and Roots

Wyoming

By Value

  1. Computer Parts
  2. Vehicles
  3. Iron and Steel

By Weight

  1. Computer Parts
  2. Articles of Iron and Steel
  3. Iron and Steel