LTL (Less-Than-Truckload)

LTL (Less-Than-Truckload) is a freight shipping method for shipments that are too large for parcel carriers (UPS, FedEx Ground, USPS) but do not fill an entire truck trailer. LTL shipments typically range from one pallet (150 pounds) to twelve pallets (roughly 15,000 to 20,000 pounds). Multiple shippers share space on the same trailer, and the carrier consolidates freight from various origins onto trucks bound for the same general region. Each shipper pays for only the space and weight their cargo occupies rather than the cost of an entire trailer.

How LTL Pricing Works

LTL rates are determined by four primary factors: weight, freight class, distance (origin and destination ZIP codes), and any applicable accessorial charges. The National Motor Freight Classification (NMFC) system assigns a freight class to every type of commodity based on its density, stowability, handling requirements, and liability. Freight classes range from 50 (the least expensive, for dense, easily handled items like steel bolts) to 500 (the most expensive, for lightweight, bulky, or fragile items like ping pong balls or gold dust).

A pallet of canned goods weighing 1,800 pounds might classify as Class 50, while a pallet of lightweight plastic storage bins weighing 300 pounds but occupying the same physical space might classify as Class 150. The lighter, bulkier pallet will cost significantly more per hundredweight (cwt) to ship because it takes up trailer space without contributing proportional weight.

Carriers publish base rate tariffs, but actual rates are almost always discounted. Shippers who move LTL freight regularly negotiate discount levels with carriers, often achieving 60% to 85% off the published tariff. Third-party logistics brokers also secure discounted rates by aggregating volume from multiple shippers.

The LTL Transit Process

LTL freight moves through a hub-and-spoke network. A pickup driver collects the shipment from the shipper’s location and brings it to a local terminal (the origin hub). At the terminal, freight is sorted and consolidated with other shipments heading in the same direction. The consolidated load moves on a linehaul truck to a destination terminal, where the freight is broken down and loaded onto local delivery trucks for final delivery to each consignee.

This consolidation process means LTL freight is handled multiple times: at pickup, at the origin terminal, during linehaul transfers (which may involve intermediate terminals for long-distance shipments), at the destination terminal, and at final delivery. Each touchpoint introduces handling risk. Damage rates for LTL freight are higher than for FTL (where the cargo stays on one trailer from origin to destination) because of these repeated loading and unloading cycles.

Transit Times

LTL transit times depend on distance and the carrier’s network. A shipment moving within the same region (for example, Chicago to Indianapolis) might deliver in one to two business days. Cross-country shipments (Los Angeles to New York) typically take five to seven business days. These timeframes are longer than FTL because of the terminal consolidation steps and because linehaul trucks may not depart until they are full, adding dwell time at origin terminals.

Accessorial Charges

LTL carriers impose accessorial charges for services beyond standard dock-to-dock delivery. Common accessorials include liftgate delivery (when the delivery location lacks a loading dock, $75 to $150), residential delivery ($75 to $125), inside delivery ($100 to $200), limited access locations ($75 to $150), and reweigh/reclass fees if the shipment’s actual weight or dimensions differ from what was declared at booking. Accurately declaring weight, dimensions, and freight class at the time of booking prevents surprise reweigh charges that can double the cost of the shipment.

LTL for Amazon Sellers

Amazon sellers use LTL freight to ship palletized inventory to FBA fulfillment centers. Amazon’s Partnered Carrier program offers discounted LTL rates through carriers like UPS Freight (now TForce) for FBA inbound shipments. Sellers create a shipping plan in Seller Central, request an LTL shipment, and receive a discounted rate quote. Alternatively, sellers can use their own carrier accounts or a 3PL’s negotiated rates if those offer better pricing.

Proper palletizing is critical for LTL shipments to Amazon. Pallets must be shrink-wrapped, labeled with Amazon’s pallet labels, and built to Amazon’s specifications (no heavier than 1,500 pounds per pallet, no taller than 72 inches including the pallet). Poorly palletized shipments risk damage during LTL transit and may be refused at the Amazon receiving dock.