What is Less Than Truckload (LTL) Freight?

At Redwood Logistics, we work with shippers and manufacturers every day—many of whom are unfamiliar with less-than-truckload (LTL) shipping methods when they first come to us. In this guide, we define LTL shipping, compare it to full truckload (FTL) shipping, and break down the key pros and cons so you can determine if it’s right for your freight needs.

Less Than Truckload Shipping Explained

Less-than-truckload shipping is a transportation mode where shippers move freight weighing anywhere from 100 to 10,000 pounds in a cost-effective way. LTL carriers use a network of terminals and assets to consolidate shipments moving in similar directions—also known as “lanes”—to offer competitive rates.

Less Than Truckload Shipping vs. Full Truckload Shipping

In full truckload (FTL) shipping, one shipper’s freight fills the entire trailer and moves directly from origin to destination. In LTL shipping, multiple customers’ freight is combined, and shipments often pass through several terminals before arriving at their final destination.

For example:
A manufacturer in Peachtree City, GA needs to ship one pallet of widgets weighing 2,000 pounds to Fresno, CA. Because the shipment doesn’t fill a full trailer, FTL shipping would be costly and inefficient—making LTL shipping the smarter choice.

In this LTL example, the process might look like this:

The carrier picks up the pallet at the manufacturer’s location.
The freight goes to the LTL origin terminal, is sorted, and loaded onto a trailer headed to the origin hub in Atlanta, GA.
From Atlanta, it’s cross-docked onto a linehaul trailer to Jackson, MS, then sent to a bulk break facility in Memphis, TN.
The freight moves to a relay facility in Oklahoma City, OK, then to Rialto, CA, before arriving at the Fresno destination terminal.
From there, it’s delivered to the final customer.

This terminal-based network is what allows LTL carriers to optimize trailer space and reduce costs for shippers.

Advantages of LTL Shipping

Cost Savings & Predictability – Pricing agreements can be negotiated annually for more accurate budgeting and forecasting based on your shipping trends.
Operational Flexibility – Many LTL carriers can schedule and complete pick-ups within hours. This is especially beneficial for “just-in-time” manufacturers who don’t want to dedicate warehouse space to storing finished products. For instance, one of our customers has over 600,000 square feet of production space and uses less than 2% for staging and shipping—thanks to the flexibility of LTL shipping.
Faster Transit Options – National carriers can cover most U.S. lanes in three transit days or less, with cross-country moves often completed within a week.
Technology-Driven Efficiencies – Modern LTL systems streamline workflows with automated pick-up requests, real-time tracking updates, digital document retrieval, and batch freight invoicing.

Disadvantages of LTL Shipping

Higher Risk of Damages – LTL freight is handled multiple times during transit, which can increase the chance of damage if packaging isn’t sufficient.
Not Ideal for Time-Critical Freight – While LTL transit times are competitive, expedited or air freight options may be better for shipments that must arrive as quickly as possible.

Explore Your Shipping Options with Redwood

Whether you’re shipping less-than-truckload, full truckload, or another mode entirely, Redwood can help you choose the right strategy to lower costs, improve reliability, and keep your supply chain moving.

Explore our By Mode page to see all your shipping options, or contact our logistics experts to start a conversation today.