Glossary

LTL (Less Than Truckload) Shipping

Definition

Less Than Truckload (LTL) shipping is a transportation method used for smaller shipments that do not require the full capacity of a standard truck. In LTL shipping, multiple shipments from different customers are consolidated onto a single truck, with each customer paying only for the space their goods occupy. This allows for more efficient and cost-effective transportation of smaller shipments compared to Full Truckload (FTL) shipping.

— sennder Team

FAQ

Some benefits of LTL shipping include: - Cost savings: Customers pay only for the space their shipment occupies on the truck, making LTL shipping more affordable for smaller shipments. - Flexibility: LTL shipping allows for the transportation of various shipment sizes, making it a versatile option for businesses with varying shipping needs. - Reduced environmental impact: Consolidating multiple shipments onto a single truck helps reduce fuel consumption and greenhouse gas emissions. - Access to additional services: Many LTL carriers offer value-added services, such as liftgate service, inside delivery, and residential delivery.
LTL shipping rates are typically based on factors such as: - Weight: Heavier shipments usually have higher rates per hundredweight. - Density: Denser shipments may have lower rates due to their efficient use of space. - Freight class: Shipments are assigned a freight class based on factors such as density, stowability, handling, and liability. Higher freight classes typically have higher rates. - Distance: Longer shipping distances usually result in higher rates. - Accessorial charges: Additional services or special handling requirements may result in accessorial charges, which add to the overall shipping cost.
LTL shipping is designed for smaller shipments that do not require the full capacity of a truck, while FTL shipping is used for larger shipments that fill an entire truck or require dedicated transportation. In LTL shipping, multiple shipments from different customers are consolidated onto a single truck, whereas FTL shipping involves a single customer's shipment occupying the entire truck. LTL shipping is generally more cost-effective for smaller shipments, while FTL shipping may be more efficient for larger shipments or those with specific transportation requirements.
Example or usage in road freight logistics

A small business that produces artisanal furniture may need to ship several pieces to customers in different locations. Instead of hiring a dedicated truck to transport their furniture, the business can use LTL shipping to consolidate their shipments with those of other customers. This allows them to save on transportation costs, as they only pay for the space their furniture occupies on the truck. The LTL carrier will pick up the furniture from the business, transport it to a distribution center for consolidation, and then deliver it to the respective customers.

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