July 3, 2024
Freight logistics can be complex, particularly where there are different options available for first-time shippers who don’t quite know where to begin. The two mainstream modes of road freight transport are less-than-truckload (LTL) and full truckload (FTL), and when deciding which one to use it’s important to consider capacity, scheduling and the business’s bottom line.
To make it easier for you to pick the mode that works best for you, this article will explore what defines each method of shipping and what to expect from less than truckload vs full truckload shipping.
Once you’ve read our guide, you should be able to grasp the difference in FTL vs LTL trucking, and from there hopefully, you’ll be ready to start shipping in no time at all.
To make it easier for you to pick the mode that works best for you, this article will explore what defines each method of shipping and what to expect from less than truckload vs full truckload shipping.
Once you’ve read our guide, you should be able to grasp the difference in FTL vs LTL trucking, and from there hopefully, you’ll be ready to start shipping in no time at all.
Understanding FTL vs LTL freight
Both LTL and FTL are effective ways for businesses of all sizes to move their goods. The term ‘truckload’ simply refers to how much space within the trailer’s capacity is being used by any shipment.
FTL, as the name suggests, is where the container is at full capacity or very near to it, in terms of both space and weight limits. Shipments usually travel solely on a single truck trailer, with one destination.
LTL, on the other hand, is where shippers only use the container capacity they need by allowing multiple shippers to pay for space in the same truck trailer. LTL uses what’s known as a ‘hub and spoke’ model: shipments are picked up from the sender’s origin, brought to a central location or hub (e.g. an Amazon FC) where several consignments from other freight shippers are handled and consolidated into the trailer, where it often makes several drop-offs along the way to its end-destination.
FTL, as the name suggests, is where the container is at full capacity or very near to it, in terms of both space and weight limits. Shipments usually travel solely on a single truck trailer, with one destination.
LTL, on the other hand, is where shippers only use the container capacity they need by allowing multiple shippers to pay for space in the same truck trailer. LTL uses what’s known as a ‘hub and spoke’ model: shipments are picked up from the sender’s origin, brought to a central location or hub (e.g. an Amazon FC) where several consignments from other freight shippers are handled and consolidated into the trailer, where it often makes several drop-offs along the way to its end-destination.
What to consider when shipping LTL vs FTL
1. Volume and size
What is often the most important factor shippers need to consider for their freight capacity requirements is the size of the shipment. LTL shipments cover smaller cargo, usually ranging from between 150 lbs to 20,000 lbs in weight, and tend therefore to leave room within a truck trailer for other consignments. FTL shipments usually exceed 20,000 lbs, hence the need to use an entire trailer. Shipments ranging between 5,000 and 10,000 lbs can be transported by either LTL or FTL.
2. Costs
When considering LTL vs FTL rates, if you’re only shipping a select few pallets each time, LTL is the most cost-effective option. Businesses can pay for the capacity they need, and no more. FTL shipping by comparison is more costly because the shipper has to pay for the complete truck trailer space.
3. Transit times and delivery schedules
For urgent freight deliveries, FTL is the best bet for shippers. LTL shipments consolidate the freight cargo for multiple shippers so need to make several stops on the journey. FTL carriers on the other hand make their pickups and deliveries on the same truck, which can significantly cut transit time if you’re in a hurry. For the same reason, delivery schedules are more predictable with FTL.
4. Handling requirements
How fragile or delicate a shipment is should also guide your decision to pick either FTL or LTL. Freight providers make sure both options are securely loaded into a container, but for those LTL shipments where journeys have several stages and may involve transfers, there remains a risk of damage or mislaid items. For high-risk consignments that should ideally stay on the same truck, it’s advisable to use FTL.
LTL vs FTL shipping: pros and cons
With these considerations in mind, let’s summarise the advantages and disadvantages of using FTL vs LTL freight methods:
FTL
Pros
• Fast and direct delivery: with a dedicated truck and driver, shipments typically have a one-way journey with no stops between pickup and drop-off
• Large capacity: the availability of a full truckload’s capacity is ideal for shippers sending large volumes of goods
• Cargo security: since the shipments are loaded onto a truck trailer once and only unloaded upon delivery, this diminishes the risk of cargo loss or damage en route
• Large capacity: the availability of a full truckload’s capacity is ideal for shippers sending large volumes of goods
• Cargo security: since the shipments are loaded onto a truck trailer once and only unloaded upon delivery, this diminishes the risk of cargo loss or damage en route
Cons
• Higher upfront cost: although margins can vary, in general, FTL is always at least slightly more costly compared to LTL
• Only cost-effective for large freight quantities: small businesses who have varying demand or do not sell as much product will find it harder to justify the higher cost of FTL
• Only cost-effective for large freight quantities: small businesses who have varying demand or do not sell as much product will find it harder to justify the higher cost of FTL
LTL
Pros
• Cost-efficient: in terms of LTL vs FTL rates, businesses shipping smaller loads who don’t need a whole truck trailer can pay for what they need, making less-than-truckload the option that helps reduce costs
• Flexible: LTL carriers can accommodate a range of shipment sizes, which can be a big advantage for scaling businesses or those with fluctuating demand
• Sustainability: since LTL shipping optimises the use of truck capacity, it has the environmental benefit of supporting the need for fewer vehicles on the road and also helps reduce total emissions within logistics
• Flexible: LTL carriers can accommodate a range of shipment sizes, which can be a big advantage for scaling businesses or those with fluctuating demand
• Sustainability: since LTL shipping optimises the use of truck capacity, it has the environmental benefit of supporting the need for fewer vehicles on the road and also helps reduce total emissions within logistics
Cons
• Longer transit: LTL shipments consolidate several consignments from different shippers with different destinations, meaning journeys have several drop-offs along the way, leading to more time spent in transit and longer delivery times.
• Reduced shipper control: LTL routes are determined by the carrier, who has to plan journeys for multiple shippers, meaning businesses have less individual control over their logistics handling and scheduling
• Risk damage: when a trailer is carrying multiple shipments, there is unfortunately a greater risk of damaged or lost goods during loading, unloading and transit
• Reduced shipper control: LTL routes are determined by the carrier, who has to plan journeys for multiple shippers, meaning businesses have less individual control over their logistics handling and scheduling
• Risk damage: when a trailer is carrying multiple shipments, there is unfortunately a greater risk of damaged or lost goods during loading, unloading and transit
Get flexible, hassle-free FTL or LTL shipments with Amazon Freight
Amazon Freight provides full network monitoring for all our shipments, whether full-truckload or less-than-truckload, giving shippers detailed tracking and real-time visibility throughout their journey. Shippers also receive 24/7 support from our customer services team.
Create your shipper account today to get started and receive a quote. You can also reach out to us at
freight-uk-interest@amazon.com with your FTL and LTL volumes, and our team will be happy to provide you with more information.
Create your shipper account today to get started and receive a quote. You can also reach out to us at
freight-uk-interest@amazon.com with your FTL and LTL volumes, and our team will be happy to provide you with more information.
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