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For companies shipping freight between 150 and 15,000 pounds, paying for a full truckload when you don't need one is a costly inefficiency. You're left with two bad choices: wait until you have enough volume to justify a full truck, or absorb the expense of unused capacity. LTL shipping solves this problem by offering a smart and economical alternative—allowing you to share truck space, pay only for what you use, and keep your freight moving on schedule.
In this article, we'll explore how LTL shipping works and the benefits it can bring to your company.
How Does LTL Shipping Work?
Essentially, LTL carriers use a network of trucks and terminals to handle consolidated freight—combining your smaller loads with other LTL shipments to fill trucks more efficiently. This contrasts with Full Truckload (FTL) shipping, which moves a single shipper's freight directly to the final destination.
Think of the LTL network like a spoke-and-hub design: smaller, local (spoke) terminals feed into larger, central (hub) terminals that guide shipments on their journey. Once an LTL shipment is picked up, it goes to a local terminal for initial consolidation, then on to a central terminal. From there, it may move through additional terminals before reaching a hub near its final destination for delivery.
For example: if you have 2,000 pounds of toy robots to ship from a Chicago suburb to Houston, paying for a full truck doesn't make sense—you won't come close to filling it. With LTL shipping, you share space on a truck and only pay for the portion you use, saving money while still shipping on your schedule.
Over the course of the trip, your freight may travel on multiple trucks and through several terminals, but the process is designed for speed, efficiency, and cost savings.
Benefits of LTL Shipping
If the ability to transport smaller loads when you need to without paying for a full truckload isn't enough of a reason to consider LTL shipping for your company, it also offers other benefits that make it a smart logistical choice for your business.
- Cost savings – Pay only for the space you use and avoid the expense of a full truckload.
- Contract pricing – Many carriers allow you to lock in rates with annual contracts for predictability.
- Fast turnarounds – Some LTL carriers can deliver in as little as two hours, ideal for limited warehouse space.
- Nationwide coverage – Large LTL networks can complete cross-country deliveries in a week or less.
- Real-time tracking – Track freight via Bill of Lading, PRO numbers, or carrier portals for full visibility.
- Lower carbon footprint – Reduce environmental impact by sharing trucks instead of running partially empty loads.
- Increased security – Freight is secured on pallets or in crates, reducing risk compared to parcel shipping.
- Extra services – Access to liftgates, inside delivery, non-commercial pickups, and advanced delivery notifications.
Final Thoughts
Managing freight in the most cost-effective and operationally sound way isn't always easy, especially when you have multiple smaller shipments to move. LTL shipping helps you get your products delivered on time, at a competitive rate, and with flexibility that adapts to your business.
At Redwood Logistics, we help shippers move thousands of LTL shipments every month with confidence. Our carrier relationships, competitive rates, advanced shipment visibility tools, and proactive customer service team make us a trusted extension of your supply chain. Whether you're looking to reduce costs, improve delivery performance, or gain better freight visibility, Redwood is ready to help.
Get in touch with our team to discover how our LTL solutions can simplify your shipping and keep your freight moving.
FAQs
What is LTL shipping and when does it make sense?
LTL shipping is a way to move smaller freight shipments by sharing truck space with other shippers. It makes sense for freight between 100 and 10,000 pounds, especially when you do not have enough volume to justify a full truckload. You pay only for the space you use, which helps avoid paying for unused capacity.
How does LTL shipping work from pickup to delivery?
LTL shipping works by moving freight through a network of local and central terminals rather than sending one truck directly from origin to destination. A shipment is picked up, consolidated at a local terminal, routed through one or more hubs, and then delivered from a terminal near the final destination. This spoke-and-hub model improves efficiency for smaller loads.
Why is LTL shipping cheaper than paying for a full truckload?
LTL shipping is usually cheaper because you only pay for the portion of the truck your freight occupies. Instead of booking an entire trailer for a smaller shipment, your freight shares space with other loads moving in the same network. That avoids the cost of unused capacity and makes smaller shipments more economical.
What are the biggest benefits of LTL shipping for shippers?
The biggest benefits of LTL shipping are cost savings, flexible shipment timing, and access to a large carrier network. Many shippers also value real-time tracking, contract pricing, lower carbon impact from shared truck space, and added services such as liftgates, inside delivery, and advanced delivery notifications. Those features make LTL practical for many smaller freight moves.
Can LTL shipping help with freight visibility and tracking?
Yes, LTL shipping can offer strong visibility through Bill of Lading numbers, PRO numbers, and carrier portals. That lets shippers monitor where freight is in the network as it moves through terminals and toward delivery. Real-time tracking is especially useful when you need tighter control over smaller, more frequent shipments.
What extra services can you get with LTL shipping?
LTL shipping can include extra services such as liftgates, inside delivery, non-commercial pickups, and advanced delivery notifications. These options are helpful when a shipment needs more than basic dock-to-dock handling. They make LTL more flexible for receivers with limited equipment, limited dock access, or specific delivery requirements.
Is LTL shipping more secure than parcel shipping?
LTL shipping is generally more secure than parcel shipping because freight is typically palletized or crated before it moves through the network. That packaging helps protect shipments during handling and terminal transfers. Since LTL is built for freight rather than individual packages, it is often a better fit for heavier or more fragile items.
