How Does LTL Shipping Work?

 

As a small to medium-sized business, you rarely need to fill an entire truck with products. However, not every order fits into a standard parcel. Less-than-truckload shipping is the perfect blend of both worlds.

Though it’s a more cost-effective way to ship your goods, you may hesitate to use this method if you’re unsure about the logistics. Our guide breaks down the complexities of LTL shipping, from its definition to the step-by-step process for setting up your first shipment.

What’s LTL Freight?

Less-than-truckload freight is the transportation of cargo that does not fill a truck. Instead, one semitruck trailer carries multiple separate shipments, typically weighing between 150 and 10,000 pounds. Shippers typically arrange LTL freight on pallets for space efficiency.

Because you share a portion of a truck, it’s a more cost-effective shipping method — you only pay for the space you use. However, it also means this method is better for freight that is not time-sensitive, as the carrier will have to make several drop-offs.

Demystifying LTL Shipping

Getting LTL freight to its destination involves a few additional steps. Your cargo will go through several touchpoints, often traveling on different trucks at various terminals before reaching the end of the line.

Here is a simplified breakdown of the typical LTL shipping process.

 

  1. Pickup: A local carrier collects partial cargo loads from various shippers and transports them to the nearest terminal.
  2. Drop-off at origination terminal: Here, workers consolidate various LTL freight shipments onto a single truck.
  3. Long-haul truck: The long-haul truck transports the consolidated LTL freight from its origination terminal to its drop-off terminal.
  4. Drop-off at destination terminal: Here, the LTL freight moves into the relevant locally operated delivery trucks.
  5. Delivery truck: The delivery truck transports the freight from numerous shippers, usually making multiple stops.
  6. Delivery: The cargo reaches its final destination.

LTL Freight Classes and Pricing

The National Motor Freight Traffic Association organizes LTL freight into classes according to the National Motor Freight Classification. These classes impact the total shipment price.

Four criteria define LTL freight’s class.

  1. Density: How much space the freight takes up relative to its weight and size.
  2. Handling: How easy it is to manage the freight throughout its journey.
  3. Stowability: How the freight fits inside a truck’s trailer.
  4. Liability: How harmless or hazardous the freight is.

Other factors that impact LTL shipment rates include carrier rates, route distance and fuel costs.

How Do I Set up an LTL Shipment?

The shipper, carrier and consignee all have different responsibilities when setting up an LTL shipment.

1. Prepare the Freight

You must carefully package and label the freight before sending it to ensure it arrives safely at its destination. Packaging is the best way to protect products. Shippers can use pallets or crates. Pallets are the standard option, as they make freight handling more efficient. Crates are ideal for fragile items, but they are bulkier and require more space.

For pallets, tightly wrap the cargo to keep the items together, placing heavier items at the base and lighter ones on top to maintain a stable load. Other best practices include preventing pallet overhang and securing loads to the pallet to avoid shifting.

Labeling is equally essential here. Carriers work with a lot of information from various sources. To ensure they know what your freight entails, place legible, durable labels on two or more sides of the pallet. Include your and the consignee’s information, reference numbers and special handling instructions.

2. Get a Quote

Request prices from multiple potential carriers, providing plenty of details to help them understand your expectations.

  • Total freight weight, including the pallet
  • Dimensions
  • Description
  • Accessorial requirements
  • Pickup and drop-off locations
  • Preferred delivery time frame

You can choose to work with a freight broker during this and the following step. Freight brokers are the middlemen between shippers and carriers. They help shippers overcome challenges by finding carriers, negotiating rates and handling logistics.

3. Create the Bill of Lading

Once you have selected a carrier, the shipper must obtain a bill of lading. The BOL is a legally binding document between the shipper and the carrier and serves as proof of receipt and an information hub for reference.

The BOL will contain information such as:

  • Parties involved
  • Cargo information
  • Shipment details
  • Terms and conditions
  • Identification
  • Special instructions

Either the shipper or the carrier is responsible for issuing the BOL. In some cases, a third-party logistics provider, such as a freight forwarder, may create the BOL on the shipper’s behalf. Remember to share the BOL with the consignee.

4. Book the Shipment

With everything in order, it’s time to schedule the shipment. Communicate with your carrier and book the pickup and drop-off date and time. When booking, consider protecting your shipment against potential damage or loss with freight insurance. Some carriers may offer limited liability coverage, but make sure you fully understand the pricing and terms of this added service.

5. Load and Track the Shipment

On pickup day, prepare the pallet or crate before the driver arrives and ensure it is easily accessible to avoid delays.

Once your freight has shipped, use the tracking number to monitor its progress. Since transit times and delivery windows can be unpredictable, regularly check on your freight and connect with the consignee to ensure all parties know when to expect the delivery.

6. Note Damages

Encourage the consignee to immediately check for damage that might have happened during transit. They must note issues on the BOL before accepting the shipment, using photos and detailed descriptions to file a claim if necessary.

7. Hold on to the BOL

Don’t throw away your copy of the BOL after delivery. You’ll need it for recordkeeping, accounting, comparing shipment costs, filing claims and freight class guidance. There is no specific rule dictating how long you should keep the BOL, but it’s wise to hold on to it for at least one year, as shippers typically have nine months to file a claim.

Benefits of LTL Freight

Shippers may experience the following advantages of LTL freight.

  • Cost-effective: You only pay for the space your shipment uses, lowering costs compared to FTL.
  • Perfect for e-commerce: It’s ideal for online retailers needing fast, flexible deliveries without waiting to fill an entire truck.
  • SMB-friendly: Helps SMBs ship affordably and across professional freight services.
  • Environmentally conscious: Fewer trucks on the road means less fuel usage and a smaller carbon footprint.

Challenges of LTL Freight

Consider these potential downsides.

  • Time flexibility: Shared shipments may result in slower delivery times.
  • Carrier capacity: Not all carriers offer LTL services, so it might take extra time to find a reliable provider.
  • Shipment details: Accurate weight, class and destinations are crucial to avoid delays or extra costs.

LTL Shipping FAQs

Get answers to all your pressing questions about LTL freight shipping.

What Is the Minimum Weight to Ship LTL?

The minimum weight to ship LTL freight is 150 pounds. Consider a different method if your cargo falls below this threshold.

Who Pays for LTL Shipping?

The person who pays for the LTL shipping depends on the arrangement with the carrier. For example, a “prepaid and add” arrangement is when the shipper pays upfront, potentially passing the cost to the consignee. With a “freight collect” arrangement, the consignee pays the carrier upon delivery.

Do LTL Shipments Have to Be on a Pallet?

While pallets are not a strict requirement, they ease handling and ensure efficient, secure transportation. Some carriers may charge an additional fee for non-palletized freight.

Partner With Green River Logistics Solutions for Your LTL Needs

LTL is a powerful tool for SMBs when managed correctly. Use this guide to make wise choices for your business, then partner with Green River Logistics Solutions for prompt and professional LTL shipping.

Our LTL freight shipping services include providing all our clients with individualized, personalized attention. We combine our expertise with advanced technology to ensure your cargo reaches its final destination safely and on time.

Get an instant quote for LTL shipping today.