Guide

What is LTL freight?

LTL (less-than-truckload) freight is a shipment that shares a truck with other shippers' freight. The U.S. Census Bureau describes LTL carriage as "multiple shipments combined onto a single truck" for multiple deliveries within a network. Truckload (TL or FTL) is the opposite: one shipment fills the truck from origin to destination.

How an LTL network works

The Census Bureau's industry definition (NAICS 484122) lists the network activities that characterize LTL carriers:

  1. Local pickup.
  2. Local sorting and terminal operations.
  3. Line-haul between terminals.
  4. Destination sorting and terminal operations.
  5. Local delivery.

Because the freight is handled at terminals and moved between trucks, how it is packaged, measured and described matters more than in a direct truckload move.

LTL vs. truckload

LTLTruckload
TruckShared with other shipmentsOne shipment, not combined with others
RouteThrough terminals, with sortingOrigin to destination
PricingFreight class, weight and the carrier's tariff, plus accessorial chargesSet by the carrier or your agreement for the whole truck
Census industry code484122484121

Where the line falls depends on the carrier. One carrier's glossary, for example, describes LTL as a weight bracket of less than 10,000 lb (R+L Carriers). Other carriers draw it differently, so ask yours.

How LTL shipments are priced

Several things on an LTL invoice depend on the shipment details you give the carrier:

  • Freight class. LTL freight is classified under the National Motor Freight Classification (NMFC), which assigns each commodity a class from 50 to 500 based on density, handling, stowability and liability (NMFTA). See what is freight class.
  • Weight and dimensions. They decide the density and, for many items, the class. See freight density vs. freight class.
  • Accessorial charges. Services beyond standard pickup and delivery, such as a liftgate or a residential delivery, are billed under the carrier's rules tariff. See LTL accessorial charges.

The documents in an LTL shipment

  • Bill of lading. The carrier must issue a receipt or bill of lading for the property it receives (49 U.S.C. § 14706(a)(1)). See what is a bill of lading.
  • Freight bill. The carrier's invoice for the shipment, with the rates and charges (49 CFR § 373.103). See freight bill and PRO number.

Before your first LTL shipment

Sources