Less than truckload
Also called LTL
Less than truckload is freight that does not fill a trailer, consolidated with other shipments and moved through a terminal network rather than direct from origin to destination.
Last reviewed · by the Fleetchart team
LTL pricing works on freight class, weight and dimensions rather than a simple per-mile rate, and shipments pass through terminals where they are re-handled.
It is a different business from truckload, requiring terminal infrastructure, and is not typically served by owner-operators.
For a carrier, the practical distinction is what a single trailer earns. An LTL network makes money on density — many small shipments sharing a lane — which requires terminals, dock labor and a linehaul schedule. Truckload makes money on utilization of one trailer. Attempting LTL without the terminal network usually means partial loads at truckload economics, which is the worst of both.
For example, say an LTL carrier fills one trailer with 8 shipments from different shippers, each paying $400, for 8 × $400 = $3,200 on a lane where a full truckload pays $2,500. That extra money pays for the docks, workers and handling. An owner-operator who hauls a single $400 shipment 500 miles earns $400 ÷ 500 = $0.80 a mile, far below what the truck costs to run.