Understanding LTL Cargo Shipping [Less Than Truckload]

Do you like to ship items with moderate quantities or weights? Too small for a full truck but too large for standard courier service.

If so, you can consider LTL shipping.

Less Than Truckload, or as it is often called LTL shipping, is used for transporting small goods or when goods do not require the use of an entire truck.

This shipping method can be used when the weight of goods is between 68 kg and 6.8 tons.

When shipping Less Than Truckload cargo, the shipper only pays for the portion of the truck occupied by their cargo, while goods from other shippers will fill the empty space.

What is LTL Shipping?

Less Than Truckload shipping is used to transport smaller shipments that typically start from 68 kg and can go up to 900 kg, 4.5 tons, or even 6.8 tons.

Less Than Truckload shipping can also be determined based on the number of pallets in a shipment. Some determine that shipments must be between 1 to 6 pallets, or even up to 14 pallets.

Because Less Than Truckload shipping only uses a portion of the truck, the shipping service provider will transport several goods from various shippers at the same time.

The service provider uses a hub and spoke model. The hub can be a distribution center with smaller warehouses or local terminals as its spokes.

Transportation starts at the hub, with delivery to the local terminal. Inventory on pallets is then divided and shipped in smaller shipments, or made available for pickup by the shipper. Because multiple shippers can ship goods via Less Than Truckload, there will be more stops and more loading and unloading that occurs.

Difference Between LTL and FTL Cargo?

If Less Than Truckload or LTL is shipping less than a truckload, Full Truckload or FTL is a full truck's cargo.

Full Truckload shipping fills the entire truck trailer, whether in terms of space or weight, so there are no other shippers shipping goods on that truck.

FTL is a good option if you want greater control over time, cost, and availability.

Both LTL and FTL shipping services typically move goods on the road, although some Less Than Truckload services also use rail shipping. Both rely on the same trucks with professional drivers. And both typically do goods shipping with pallets.

One major difference with FTL shipping‍

The shipper loads pallets at the origin, and the driver ships the pallets to the destination. The driver may stop to rest, but the shipment is not unloaded and reloaded during the journey, unless there is a problem. The driver goes directly to the destination.

So shipping becomes shorter than Less Than Truckload shipping, and is easier to plan and coordinate.

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For more: Difference Between FTL and LTL Shipping in Goods Distribution

Benefits & Challenges of LTL Cargo

Less Than Truckload is a better option than regular shipping when goods weigh more than 68 kg.

The shipper may not want to divide packages into smaller boxes. Instead, the shipper can stack pallets with many boxes. This not only saves shipping costs, but also reduces the chance of boxes being damaged or lost during transit.

LTL solutions can also usually offer more services than FTL solutions. Some of these are lift gate service, freeze protection, shipping notifications, tracking with Bill of Lading number, and several other options as well.

Although the Less Than Truckload method is a good solution in many cases, there are some challenges to keep in mind.

One of the challenges of LTL shipping is the trade-off between cheaper shipping costs and longer shipping times.

Because multiple shippers use the same truck and service, the truck will stop more than once when loading and unloading various goods.

Another challenge is that cargo is moved more frequently due to repeated loading and unloading by LTL companies, whereas FTL cargo remains on the trailer at all times.

If deciding to use Less Than Truckload service, be sure to pack goods carefully.

Determining LTL Shipping Rates

Many factors shape Less Than Truckload shipping rates, some of which are:

Cargo class and weight: Weight and cargo class are important determinants of shipping rates. Cargo class is a key factor because other companies are also using this service, so various goods are on the same truck.

Distance: The farther the shipping distance, the higher the shipping cost will be.

Fuel price: Fuel surcharge is common in truck freight transportation.

Guarantee and speed: Various cargo providers have different service levels, ranging from guaranteed or faster service. The faster the service, the more expensive it will be.

Additional fees: Cargo providers may charge additional fees such as using lift gate, freeze protection, and so on.

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Conclusion

Less Than Truckload LTL shipping is very useful for companies that have several pallets and need quick shipping.

With direct access to various LTL operators in Indonesia, ABC Express provides access to instant LTL rate quotations for your shipping. Simply fill in the shipping details, see instant offers from our team, and order your shipping in minutes.

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