Explaining LTL Shipments (Less than Truckload ) Shipments in Logistics and Transportation
A shipment that does not require a full 48- or 53-foot trailer can be shipped via less-than-truckload or LTL. Shippers use this option, which can be cost-effective and environmentally friendly when they only need to ship a small amount of product.
LTL shipments involve shipment of relatively small freight. To put it in simple terms, general freight carriers offer two types of service, Full Truckload (FTL) service or Less-Than-Truckload (LTL).
While the FTL carrier moves full containers or trucks of one product from one customer, the LTL carrier moves goods from many different customers on one truck.
LTL shipments typically weigh between 151 and 20,000 lb (68 and 9,072 kg). Less than Truckload carriers use "hub and spoke," operations, where small local terminals are the spokes ('end of line') and larger more central terminals, are the hubs (also called Distribution Centers or DC's).
LTL shipment rates s are determined by class, weight, lane (i.e., pickup and delivery locations), and additional required services, if any. LTL carriers normally offer better rates than parcel carriers for competitive reasons and economies of scale. A separate cost added on top of the line haul, the fuel surcharge is the cost of fuel associated with the lane, specifically the distance between the shipper and the consignee. The fuel surcharge changes weekly due to barrel costs.
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