LTL Freight

Less-than-Truckload (LTL) freight is a shipping method for cargo that doesn't fill an entire truck trailer. Rather than paying for a full trailer, shippers pay only for the portion of the trailer their freight occupies — sharing space (and cost) with other shippers' cargo moving in the same direction. LTL is the dominant mode for B2B shipments of palletized goods in the 150 to 10,000 lb range.

How LTL Works

An LTL shipment moves through a network of terminals rather than point-to-point. The process:

1. Origin pickup: A driver picks up the pallet(s) from the shipper's dock
2. Origin terminal: Freight is unloaded, sorted by destination region, and consolidated with other freight
3. Line haul: Consolidated truckloads move between regional service centers (often overnight)
4. Destination terminal: Freight is sorted again by delivery zone and loaded onto local delivery routes
5. Final delivery: A local driver delivers to the consignee

The multi-touch nature of LTL creates more handling — and therefore more damage risk — than truckload. LTL damage rates (typically 0.5–2%) are meaningfully higher than FTL damage rates.

LTL Pricing

LTL pricing is significantly more complex than truckload. Key determinants:

Freight class: The NMFC (National Motor Freight Classification) assigns every commodity a class from 50 to 500 based on density, stowability, handling difficulty, and liability. Class 50 is the cheapest (dense, heavy items like flooring); Class 500 is the most expensive (low-density, high-liability items like ping pong balls). The class system is widely criticized as archaic; carriers like FedEx Freight have moved to density-based pricing instead.

Weight breaks: LTL rates are published per 100 lbs (CWT) but use discount-from-tariff pricing. There are non-linear weight breaks — shipping 501 lbs often costs more than shipping 500 lbs because of how rates tier.

Accessorial charges: Residential delivery, liftgate, inside delivery, appointment required, and limited access surcharges add substantially to the base rate.

Major LTL Carriers in the US

After the Yellow Freight bankruptcy in 2023 (which removed 10% of US LTL capacity overnight), the market consolidated further:

• FedEx Freight: The largest US LTL carrier post-Yellow, with a national network of 400+ service centers
• Old Dominion Freight Line (ODFL): Consistently rated the best-performing US LTL carrier for service quality; strong pricing power
• XPO Logistics: Operates the second-largest LTL network after spinning off RXO
• Saia LTL Freight: Strong Southeast network; aggressive expansion post-Yellow
• Estes Express Lines: Privately held; strong regional presence

LTL vs. FTL Decision

The classic breakeven point: when an LTL shipment exceeds approximately 8–10 pallets or 15,000 lbs, the cost of the LTL shipment often exceeds the cost of a dedicated truckload. At that point, shipping FTL (or partial truckload/PTL) becomes economical and also faster and less damage-prone.