The freight transportation industry is a complex network of hubs, operators, and routes. Among all these moving parts, one acronym stands out as the key for businesses wanting to ship small quantities of goods more efficiently and cost-effectively: LTL, meaning less-than-truckload shipping.
This transportation solution has transformed how businesses move their products across the country and beyond.
From small start-ups to large manufacturers, LTL shipping continues to grow in popularity. In fact, the U.S. LTL market was valued at approximately $114 billion in 2025 and is projected to expand at a compound annual growth rate (CAGR) of 4.13% through 2030.
What Is Less Than Truckload Shipping (LTL)?
Less Than Truckload shipping (LTL) is an optimal transportation method for loads that do not fill an entire trailer. Unlike Full Truckload (FTL), LTL consolidates multiple smaller shipments from various shippers onto the same truck.
In this way, businesses share both truck space and transportation costs, and with the proper planning, they can make their shipping operations more sustainable.
Typically, LTL shipments weigh between 150 lbs and 10,000 lbs and are usually palletized. Ranging from a single pallet to several pallets, less than truckload freight offers flexibility for businesses with varying shipping needs.
How Does LTL Freight Work?
LTL freight operates using a hub-and-spoke model. In practice, this means that freight from multiple local areas (the spokes) is collected and brought to a central terminal (the hub), where it’s sorted and combined with other shipments before moving on to another hub or final destination.
For example, if freight is picked up in Phoenix, Arizona, and needs to be delivered in Dallas, Texas, it would first stop at an LTL terminal, let’s say a major city like Albuquerque, New Mexico. There, it would be combined with other freight headed east toward Dallas before being transported to a final delivery terminal.
At each hub, LTL carriers move shipments from one trailer to another, consolidating them with freight going to the same ultimate destination.
Essentially, less than truckload freight shipping combines partial loads to create full multi-stop truckloads, with shipping costs based on the space used, the class of items being shipped, and pickup and destination locations.
Beyond price, optimized LTL reduces the miles a truck travels to deliver a shipment and minimizes deadhead miles – offering extra flexibility and increased sustainability.
Benefits Of LTL Freight Shipping
LTL logistics is an attractive option for businesses of all sizes. And for some good reasons too.
Cost Savings
The most compelling benefit of less-than-truckload shipping is cost efficiency. Shippers only pay for the portion of the trailer their load occupies, a fraction of what a normal full truckload shipment would cost.
They also enjoy rate stability, as LTL pricing is less sensitive to market volatility than full truckload rates. This allows small businesses shipping fewer goods to access professional shipping services without paying for unused space.
Flexibility
With the rise of e-commerce, businesses are now expected to offer shipping solutions that align seamlessly with customer expectations. Thanks to flexible LTL logistics options and smart transportation management strategies, suppliers can ship anything from a single pallet to several with ease.
And when the season peaks, LTL services can be easily adjusted to meet shifting needs.
Sustainability
Beyond customer service, LTL trucking also emphasizes sustainability by consolidating more loads onto fewer trailers. This results in fewer trucks on the road, lower CO₂ emissions, and a more sustainable supply chain.
Access To Extensive Networks
LTL carriers typically maintain extensive networks that coordinate freight from dock to dock, offering flexible and cost-effective solutions for both national and international shipping.
Challenges Of LTL Freight Shipping
Less-than-truckload shipping, despite its numerous benefits, also comes with some challenges.
Transit Time Considerations
With LTL freight, speed may suffer as a tradeoff for flexibility and price. LTL trucks transport cargo from different shippers and must deliver it at multiple stops.
This increases the chances of delayed shipments, particularly if a set of goods is dropped off at the last stop or if there are traffic jams or other unforeseen delays between stops.
Extra Handling Risks
LTL trucking involves multiple loadings and unloadings. What this means is that your pallets may be loaded on a trailer at the point of origin, and then unloaded at the next hub, and consolidated with other shipments in other trucks until they reach their final destination.
This extra handling increases the risk of loss or damage during transit.
Carrier Capacity Challenges
Unlike full truckload shipping, capacity is often a challenge in LTL. Carriers must balance routes, costs, driver availability, and other operational factors before moving a shipment. As a result, pallets may wait longer than expected at the point of origin or intermediary hubs.
Rising e-commerce demand and seasonal spikes add even more strain to LTL networks.
Overcoming the challenges of LTL shipping requires more than coordination — it demands strategy, visibility, and the right partner. Agile Supply Chain Solutions (SCS) helps simplify the process by managing every step, from planning and execution to tracking and optimization.
Through advanced Transportation Management Systems (TMS) and multi-carrier comparison, Agile SCS ensures each shipment moves on the most efficient route for your budget and timeline.
Ready to navigate LTL complexity and keep your shipments moving with confidence? Partner with Agile SCS today.
FAQs
What Is An LTL Carrier?
An LTL carrier is a freight transport company that specializes in Less-Than-Truckload (LTL) shipments, i.e., combining multiple shipments for different customers in the same truck. They optimize loads and typically operate a complex hub-and-spoke network with consolidation points.
What Is An LTL Shipment?
An LTL shipment is freight that does not require a full truckload, up to 10,000 lbs, or roughly up to 6 pallets. It occupies only a portion of an entire trailer, making it a cost-efficient shipping method because the shipper pays only for the space used.
What Are LTL Loads?
LTL loads are small loads from multiple shippers that are combined onto the same trailer to create a full multi-stop truckload. This strategy is ideal for small shipments and reduced costs for shippers sharing the same trailer space.