What is LTL Freight Shipping?
LTL (Less-Than-Truckload) freight shipping is a method where your cargo shares truck space with shipments from other shippers. Unlike FTL (Full Truckload), you only pay for the space you use — typically 1 to 6 pallets weighing between 150 lbs and 15,000 lbs.
LTL is the most cost-effective way to ship palletized freight when you don't have enough cargo to fill an entire truck. Major LTL carriers in the US include Old Dominion (ODFL), Estes Express, FedEx Freight, Saia, XPO Logistics, and TForce Freight.
How LTL Pricing Works
LTL rates are determined by several factors:
- Freight Class (50-500) — Based on density, stowability, handling, and liability. Lower class = lower rate.
- Weight — Heavier shipments get better per-pound rates.
- Distance — Origin to destination ZIP codes determine the lane.
- Accessorials — Extra services like liftgate, residential delivery, inside delivery, or appointment scheduling add fees.
Understanding Freight Class
Freight Class is the #1 factor that trips up new shippers. There are 18 classes from 50 to 500. The class is determined by your product's NMFC (National Motor Freight Classification) code.
Pro Tip: Use our free NMFC Lookup Tool to find the correct class for your product before getting a quote.
| Class | Density (lbs/ft³) | Example |
|---|---|---|
| 50 | 50+ | Steel, machinery |
| 70 | 15-22.5 | Car parts, food items |
| 100 | 8-10 | Boat covers, wine |
| 175 | 4-6 | Clothing, couches |
| 500 | <1 | Gold, ping pong balls |
Residential vs. Commercial Delivery
Residential delivery typically costs $50-$150 more than commercial delivery. If your destination is a home address, carriers will automatically apply a residential surcharge. Some carriers (varies by carrier) also require appointment delivery for residential addresses, which adds another fee.
If possible, ship to a commercial address to save money. Commercial addresses include businesses, warehouses, and loading docks.
Tips to Save Money on LTL
- Compare multiple carriers — Rates vary 20-50% between carriers for the same shipment. Use ShipOnlines to compare multiple carriers in our network quotes side by side.
- Know your freight class — Incorrect class leads to rebilling. Get it right the first time.
- Ship to commercial addresses — Avoid residential surcharges.
- Consolidate shipments — Combine smaller shipments into one larger one for better rates.
- Be flexible on dates — Mid-week pickups often have lower rates than Monday or Friday.
When to Use LTL vs. FTL
Use LTL when shipping 1-6 pallets. Once you reach 6+ pallets or 10,000+ lbs, full truckload (FTL) often becomes more economical. FTL also makes sense for time-sensitive or fragile cargo that shouldn't be handled multiple times.
