Choosing the right shipping method is essential for businesses aiming to balance costs, delivery speed, and reliability. Two of the most widely used options are Less Than Truckload (LTL) and Full Truckload (FTL) shipping. While both serve important roles in logistics, they differ significantly in cost structure, speed, and handling. Understanding the benefits and limitations of each can help businesses make informed decisions, minimize expenses, and enhance operational efficiency.
What is LTL and FTL Shipping?
LTL (Less Than Truckload) shipping is designed for businesses that do not have enough freight to fill an entire truck. Instead, multiple shipments from different companies are consolidated onto a single truck, allowing each shipper to pay only for the space they use. This makes LTL an economical choice for companies with smaller shipments that are flexible on delivery times.
FTL (Full Truckload) shipping, in contrast, is used when a single shipment takes up the entire truck. The freight moves directly from the pickup location to the final destination without stopping for other shipments. This reduces handling, improves transit times, and is ideal for businesses shipping in bulk or transporting high-value or fragile goods.
Key Differences Between LTL and FTL
1. Cost Considerations
Shipping costs play a major role in supply chain decisions. LTL is cost-effective for smaller shipments because costs are shared across multiple businesses. However, rates depend on factors such as weight, freight class, distance, and additional services like liftgate deliveries or residential drop-offs.
FTL is typically more expensive because the entire truck is reserved for one shipment. However, when shipping large volumes or high-value items, FTL can reduce overall costs compared to sending multiple LTL shipments. Businesses aiming to reduce shipping costs should consider the balance between upfront expenses and long-term efficiencies.
2. Transit Time and Speed
When speed is a priority, FTL is the better choice. Since the truck moves directly to the destination, there are fewer delays due to multiple stops or transfers. This makes FTL ideal for time-sensitive deliveries and perishable goods.
LTL shipments take longer because the truck stops multiple times to pick up and drop off freight from various shippers. Additionally, LTL shipments may be transferred between terminals, increasing the risk of delays. Companies focused on reducing shipping delays should assess their delivery needs and choose FTL for urgent shipments.
3. Freight Handling and Safety
LTL shipments undergo multiple touchpoints, increasing the risk of damage. Freight is loaded and unloaded several times before reaching its destination, making proper packaging crucial to prevent breakage. Businesses shipping fragile or high-value items may find FTL a safer option since freight remains in the same truck from pickup to delivery.
FTL minimizes handling since the shipment stays on the same truck throughout transit. This makes it the preferred option for delicate, oversized, or hazardous materials that require extra care. Businesses weighing the impact of shipping costs should also consider the potential expenses associated with damaged goods in transit.
4. Shipment Size and Weight
LTL is an excellent choice for shipments between 150 and 10,000 pounds. It’s particularly beneficial for ecommerce businesses that need to move smaller loads efficiently without paying for unused truck space.
FTL is best suited for shipments over 10,000 pounds or when a company regularly ships full truckloads of goods. Businesses that frequently ship high volumes may find FTL more cost-effective in the long run, especially when working with fulfillment companies that offer consolidated shipping solutions.
5. Flexibility and Availability
LTL shipping provides greater flexibility for businesses that ship smaller loads or have inconsistent shipping needs. It allows companies to move freight without waiting to fill an entire truck, making it a practical choice for ecommerce fulfillment and smaller supply chains.
FTL offers more predictability since businesses can control pickup and delivery schedules. This ensures shipments arrive on time without delays caused by multiple stops. For businesses with high-priority shipments, FTL can offer peace of mind and reliability.
Understanding the Impact of Shipping Costs
For businesses managing supply chains, understanding what factors impact shipping costs is essential for controlling expenses and maximizing efficiency. Some key cost influencers include:
Distance and fuel costs: The longer the route, the higher the shipping cost, especially with fluctuating fuel prices.
Freight class and density: Heavier and bulkier shipments are priced differently based on classification.
Additional services: Expedited shipping, special handling, and extra delivery stops can add to the final cost.
Mode of transport: Whether using LTL or FTL, each method carries different cost structures based on market demand.
To minimize expenses, businesses should compare rates, optimize packaging, and work with shipping and freight providers that offer competitive pricing.
How Ecommerce Businesses Can Optimize Shipping
Ecommerce businesses rely on efficient shipping strategies to keep customers satisfied while managing costs. Since many online retailers ship a mix of small and large orders, understanding when to use LTL versus FTL can help streamline operations.
When to Choose LTL for Ecommerce Fulfillment
Frequent small shipments that don’t require a full truck.
Cost-sharing opportunities to reduce expenses.
Flexibility in delivery times.
When to Choose FTL for Ecommerce Fulfillment
Bulk orders that require a full truck.
High-value or fragile items needing minimal handling.
Urgent deliveries that require fast and reliable shipping.
Ecommerce fulfillment providers can help businesses find the most cost-effective shipping solutions, ensuring a balance between cost savings and customer satisfaction.
The Difference Between Freight and Shipping
Although "freight" and "shipping" are often used interchangeably, they have distinct meanings in logistics.
Freight refers to goods transported in bulk via trucks, trains, ships, or planes. Freight typically involves large-scale commercial shipments.
Shipping encompasses the broader movement of goods, including small parcel shipments sent via couriers.
For businesses evaluating logistics options, knowing the difference between freight and shipping can help in choosing the right transportation method and service provider.
Choosing the Best Shipping Method for Your Business
Selecting the right shipping method depends on factors such as shipment size, urgency, and budget. While LTL shipping is more affordable for small loads, FTL provides faster transit times and enhanced security. Businesses should assess their shipping needs and work with experienced fulfillment companies to find cost-effective solutions.
Shipping and Freight Solutions with FlatOut Fulfillment
At FlatOut Fulfillment, we understand that no two businesses have the same shipping needs. Whether you require LTL or FTL shipping, our team helps you navigate the best solutions to reduce costs, avoid delays, and optimize your logistics strategy. Our ecommerce warehouse and fulfillment services ensure your products move efficiently through the supply chain.
Looking for a reliable shipping partner? Contact FlatOut Fulfillment today to discuss how we can help you improve your shipping and freight operations while keeping costs under control.