Less-than-truckload (LTL)
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is less-than-truckload (LTL)?
Less-than-truckload (LTL) is a freight service for shipments too large for parcel carriers but too small to fill a truck, typically one to several pallets. The carrier combines shipments from many companies in one trailer and charges each by weight, distance and freight class.
How it works
Distributors use parcel carriers for small boxes, LTL for pallets, and full truckload for large supplier orders. LTL costs less than a dedicated truck, but shipments pass through carrier terminals, which adds transit time and handling.
Less-than-truckload (LTL) example
Twelve cases of floor finish and twenty cases of paper towels, about 600 pounds in all, are too much for parcel, so the warehouse builds one pallet and books it LTL.
Related terms
- Freight termsFreight terms are the part of a sale that says who pays for shipping and how the cost is billed.
- Bill of lading (BOL)A bill of lading (BOL) is the document a carrier issues at pickup that serves as the receipt for the goods and the contract for carrying them.
- Free on board (FOB)Free on board (FOB) is a shipping term that names the point where responsibility for the goods passes from seller to buyer.
- Transportation management system (TMS)A transportation management system (TMS) is software for planning, booking and tracking shipments, including carrier choice, routing and freight rates.
