Less-Than-Truckload (LTL)

Less-than-truckload shipping lets multiple shippers share space on a single trailer, making it the go-to mode for shipments too large for parcel but too small to justify a full truck. LTL carriers operate hub-and-spoke networks – freight is picked up, consolidated at a terminal, sorted, transferred between trailers, and delivered through a series of handoffs. This efficiency comes at a tradeoff: longer transit times and more freight handling than FTL.

LTL pricing is significantly more complex than truckload. Rates are driven by freight class – an NMFC classification based on density, stowability, handling difficulty, and liability – along with origin-destination pair, weight, and a web of accessorial charges. Liftgate fees, residential delivery surcharges, inside delivery, limited access – these accessorials can inflate an LTL invoice by 20–40% beyond the base rate if you're not watching closely. Re-classification is another pain point: if a carrier inspects your freight and determines it was classed incorrectly, they'll reclassify and bill at a higher rate.

Managing LTL well requires accurate freight data upfront. Precise dimensions, weights, and commodity descriptions on the bill of lading prevent reclassification surprises. Comparing tariffs across carriers is essential but tedious without automation – every LTL carrier publishes different tariff structures, discount levels, and accessorial schedules. The shippers who win at LTL are the ones who can instantly compare net rates across their full carrier roster, including accessorial estimates, before tendering.

Temperature-controlled LTL – reefer LTL – adds another layer of complexity. Fewer carriers operate in this space, capacity is tighter, and the consequences of service failures are higher when you're shipping perishable goods. For food and beverage shippers, having real-time visibility into reefer LTL options alongside dry van rates is critical for making smart mode decisions on every shipment.