LTL vs FTL Freight Shipping: How to Choose the Most Cost-Effective Option

Selecting the right mode for each shipment is one of the simplest ways to protect margin and improve supply chain performance. Yet many companies default to whatever they have always used—either full truckload or LTL—without considering whether it is still the best option.

For small or mid-sized shipments, choosing between Less-Than-Truckload (LTL) and Full Truckload (FTL) can mean the difference between a profitable order and a load that quietly eats into your bottom line.

We break down the differences between LTL and FTL, when each makes sense, and a practical decision framework you can use on every shipment.

‍

What Is LTL Freight?

Less-Than-Truckload (LTL) shipping combines multiple shippers’ freight into a single trailer. You only pay for the portion of space and weight you use, not the entire truck.

Typical characteristics:

• Shipments from 1–6 pallets
• Weight usually between 150 lbs and 10,000–12,000 lbs
• Multiple handling points at terminals and cross-docks
• Longer transit times due to indirect routing and shared capacity

LTL is ideal when you:

• Need to move smaller orders frequently
• Ship to multiple destinations in different regions
• Want to avoid holding inventory while waiting to build a full truckload

‍

What Is FTL Freight?

Full Truckload (FTL) dedicates an entire trailer to one shipper’s load. The truck typically runs direct from origin to destination without terminal stops.

Typical characteristics:

• Shipments that fill most or all of a trailer by weight, cube, or value
• Higher cost per move, but lower cost per unit for larger volumes
• Less handling, lower damage risk
• Faster, more predictable transit times

FTL is ideal when you:

• Have enough volume to justify a full trailer
• Need tight delivery windows or time-critical freight
• Move high-value or fragile goods that cannot be frequently handled

‍

Key Differences: LTL vs FTL at a Glance

You can present this section as a visual table on the site; here is the content:

Freight Aspect | LTL | FTL

• Typical Shipment Size
  • LTL: 1–6 pallets, partial loads
  • FTL: 10+ pallets, full or near-full trailer
• Cost Structure
  • LTL: Pay only for the space you use, shared with other shippers
  • FTL: Fixed rate for the full truck, regardless of whether you fill it
• Transit Time
  • LTL: Longer transit due to hub-and-spoke terminals and multiple stops
  • FTL: Faster, point-to-point movements
• Handling
  • LTL: More handling at terminals; higher chance of minor damage
  • FTL: Minimal handling; truck is typically loaded once and sealed
• Flexibility
  • LTL: Great for frequent, smaller shipments
  • FTL: Best for high-volume lanes and large orders
• Ideal Use Case
  • LTL: Inventory replenishment, multi-location retail, partial loads
  • FTL: Store openings, major promotions, production runs, bulk moves

‍

When LTL Is the Right Choice

LTL tends to be the most cost-effective and operationally smart option when:

1. Your freight does not fill a trailer.
   If you are shipping a few pallets or a partial load, paying for an entire truck is rarely efficient.
2. You ship to multiple destinations.
   LTL networks are designed for broad distribution. They work well for retailers, distributors, and manufacturers shipping smaller orders to many locations.
3. You want to ship more frequently.
   Instead of holding inventory until you can fill a truck, LTL allows you to move product as orders come in, improving turns and responsiveness.
4. Your transit time is flexible by a day or two.
   LTL usually takes slightly longer than direct FTL. If your customer expectations and production schedules allow it, you can save significantly by consolidating into LTL.
5. You are managing outbound replenishment or returns.
   Regular small resupply shipments and reverse logistics programs often align well with LTL networks.

LTL is not always the cheapest headline rate, but it is often the lowest true cost when you consider utilization, inventory carrying cost, and customer expectations.

‍

When FTL Is the Right Choice

Full Truckload becomes the better option when:

1. Your shipment approaches full trailer capacity.
   Once you are consistently shipping 10–12 pallets or more, FTL frequently becomes cheaper on a per-unit basis than LTL.
2. Transit speed is critical.
   FTL offers more direct routing and can significantly reduce transit time compared to LTL hub-and-spoke networks.
3. Freight is high-value, fragile, or sensitive.
   With minimal handling and fewer transfers, FTL reduces the risk of damage and claims.
4. Delivery windows are tight or appointment-based.
   Many big-box retailers, DCs, and production facilities require specific delivery windows. FTL gives you better control over arrival times.
5. You have recurring, predictable lanes.
   If you move steady volume between the same origins and destinations, FTL contracts and dedicated capacity can lock in both cost and reliability.

When used correctly, FTL gives you speed, control, and protection on your biggest and most important loads.

‍

Cost Comparison: LTL vs FTL in Practice

There is no universal rule for which mode is cheaper. Instead, shippers should consider:

• Weight and cube: How much of the trailer will you actually use?
• Distance: Longer-haul shipments often favor FTL once you cross a certain mileage or volume threshold.
• Freight class and accessorials: LTL pricing is tightly tied to freight class, density, and extra services. FTL pricing is more straightforward.
• Handling and damage risk: A lower rate is meaningless if damaged freight leads to returns, write-offs, or chargebacks.
• Time sensitivity: What is the cost of missing a production start, store opening, or scheduled install?

A good logistics partner will model these variables lane by lane instead of relying on guesswork.

‍

A Simple Decision Framework for LTL vs FTL

You can quickly evaluate most loads using four questions:

1. How much space will this shipment take?
   • Under roughly half a trailer and flexible timeline: Start by pricing LTL.
   • Over half a trailer or very dense freight: Compare both LTL and FTL.
2. How time-sensitive is the delivery?
   • Delivery window of several days: LTL is typically fine.
   • Tight delivery window or high consequence of delay: FTL often justifies the added cost.
3. What is the value and damage sensitivity?
   • Standard durable goods: LTL is usually acceptable.
   • Fragile, high-value, or specialized freight: FTL reduces touchpoints and risk.
4. Is this part of a recurring lane or a one-off shipment?
   • One-off or sporadic: Choose the mode that makes sense for that shipment.
   • Recurring lane: Consider a blended strategy—some loads FTL, some LTL—with the help of a brokerage that can optimize total cost over time.

When in doubt, running both an LTL and an FTL quote on the same lane often reveals which mode creates better value.

‍

How Distribution Network Inc. Helps Shippers Optimize Mode Choice

Trying to manage LTL and FTL decisions internally for every lane can be time-consuming. Distribution Network Inc. simplifies this by:

• Pricing both LTL and FTL across a vetted carrier network
• Recommending the most efficient mode for each shipment based on your priorities
• Consolidating and routing freight to increase trailer utilization
• Reducing surprise charges and accessorials through upfront planning
• Providing real-time visibility regardless of mode

Instead of forcing your freight into one model, DNLogistic blends modes intelligently to help protect margin and service levels across your entire network.

‍

Example Scenario

A regional manufacturer was shipping 6–10 pallets from their plant to multiple distribution centers each week. They defaulted to FTL for convenience, even when they were only using half the trailer.

After a lane analysis:

• Smaller loads to mixed destinations shifted to LTL
• Heavier, time-critical loads remained on FTL
• High-value freight was routed on dedicated truckload capacity

The result:

• Total annual freight cost reduced by more than 18 percent
• On-time delivery improved due to better mode selection and planning
• Fewer damage claims due to optimized handling decisions

The difference came not from renegotiating every rate, but from using LTL and FTL more strategically.

‍

Final Word

LTL and FTL are both powerful tools. The key is knowing when to use each. Defaulting to one mode for every shipment usually means you are either overspending or accepting unnecessary risk.

A data-driven mode selection strategy, supported by the right brokerage partner, helps you ship more efficiently, protect your margins, and deliver a better experience for your customers.