In the complex world of logistics, choosing a suitable freight shipping method can significantly impact the efficiency and cost-effectiveness of business supply chains. Two commonly used modes, Full Truck load (FTL) and Less than Truck Load (LTL), cater to different shipment sizes and business needs.
Let’s delve into the basics, explore use cases, identify similarities, and uncover the critical differences between FTL and LTL to empower shippers when deciding the best method for their needs.
Understanding the Basics
-
Full Truckload (FTL)
Full Truckload, often abbreviated as FTL or TL, involves the transportation of freight using an entire truck dedicated to a single shipper’s cargo. FTL shipment provides exclusivity, as the shipper reserves the total capacity of the truck, even if it doesn’t necessarily fill the entire space. The most common equipment includes a class 8 tractor with a 53’ dry van trailer, though refrigerated and open deck trailers are also prevalent.
-
Less Than Truckload (LTL)
Less Than Truckload, known as LTL, is a mode of surface transportation where multiple shippers’ freight share space on the same trailer. LTL is particularly suitable for shipments ranging from 1 to 6 pallets or less than 12 linear feet. Shipment sizes exceeding six pallets might be candidates for volume LTL or partial truckload shipping.
When to Choose What?
-
Use Cases for Full Truckload (FTL)
- Shipping Volume: FTL is optimal when shipping over 12 pallets simultaneously, using the entire truck capacity for larger shipments.
- Fragile Goods: If your product is extremely weak or delicate, FTL offers the advantage of reduced handling.
- Strict Timelines: FTL is recommended when firm pick-up and delivery appointments are crucial, ensuring precise timelines.
- Time-Sensitive Delivery: FTL guarantees a more predictable transit for shipments with time-sensitive delivery requirements.
-
Use Cases for Less Than Truckload (LTL)
- Smaller Shipments: LTL is cost-effective for shipping 12 pallets or less, making it ideal for smaller businesses or shipments.
- Handling Tolerance: If your product is sturdy enough or adequately packaged to withstand increased handling during transit.
- Flexible Timings: LTL is suitable when there’s flexibility with shipping and delivery timings, allowing for cost savings.
- Cost-Effective Option: Opt for LTL when saving money is a priority, as you only pay for the space you use.
Similarities Between FTL and LTL
While FTL and LTL operate as distinct modes, they share several characteristics:
- Both primarily move freight over the road, although some LTL carriers may use intermodal rail shipping.
- Both rely on class 8 tractors (semi-trucks) for transportation.
- Both modes predominantly deal with palletized freight.
The Differences
-
Handling of Freight
- FTL: In FTL, the shipper loads the product at the origin, seals the trailer, and the driver takes the effect straight to the destination with minimal handling.
- LTL: LTL involves multiple loading and unloading instances, exposing the product to increased handling and potential damage. Proper packaging is essential for LTL shipping.
-
Accessorial Charges
- FTL: FTL drivers provide undivided attention, and accessorials are generally more forgiving due to the single load over several days.
- LTL: LTL carriers, striving for efficiency, may impose additional charges for delays or disruptions, given the shared capacity and multiple stops.
-
Freight Class and Reweighing
- FTL: Carriers are generally less concerned with exact commodity specifications; information like palletization, hazmat status, and legal weight suffices.
- LTL: Freight class is crucial in LTL, as rates vary based on the standardized freight classification system. Shipments may be reweighed using dimensioners, affecting the rate based on accuracy.
-
Transit and Delivery
- FTL: Transit in FTL is usually more direct, with drivers making a single stop from the shipper to the consignee or receiver.
- LTL: LTL transit is not straight through, often taking longer due to multiple stops. Delivery dates are estimated unless a premium is paid for guaranteed transit.
-
Pick-Up Windows and Trailer Specs
- FTL: FTL drivers accept firm appointment times, providing more predictability for pick-up.
- LTL: LTL drivers operate on first-come-first-serve (FCFS) windows, with pick-ups not guaranteed due to multiple stops. LTL trailers often have roll doors with reduced clearance.
Conclusion – Making Informed Decisions
Understanding the nuances between Full Truckload and Less Than Truckload empowers shippers to make informed decisions aligned with their specific shipment characteristics and business objectives. Whether optimizing for cost savings, handling sensitivity, or strict timelines, choosing the right mode is pivotal for efficient supply chain management.
Making informed decisions is the first step towards a streamlined and cost-effective freight strategy.
