---
title: "LTL Shipping: The Basics"
description: LTL shipping is a cost-effective choice for smaller shipments. It uses local fleets and hub-and-spoke networks for efficient delivery.
image: https://blog.customodal.com/hubfs/Imported_Blog_Media/shutterstock_1147511855-1-2.jpg
---

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# LTL Shipping: The Basics

TAGS:

- [Blog](https://blog.customodal.com/tag/blog)
- [3pl](https://blog.customodal.com/tag/3pl)
- [Logistics](https://blog.customodal.com/tag/logistics)
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- [Digital Freight Management](https://blog.customodal.com/tag/digital-freight-management)
- [Shipping](https://blog.customodal.com/tag/shipping)
- [supply chain](https://blog.customodal.com/tag/supply-chain)
- [Freight Costs](https://blog.customodal.com/tag/freight-costs)
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- [Specialized Freight Management](https://blog.customodal.com/tag/specialized-freight-management)
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- [outbound](https://blog.customodal.com/tag/outbound)
- [Critical Infrastructure](https://blog.customodal.com/tag/critical-infrastructure)
- [FLEX Outbound Freight](https://blog.customodal.com/tag/flex-outbound-freight)
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- [freight claim](https://blog.customodal.com/tag/freight-claim)
- [freight management](https://blog.customodal.com/tag/freight-management)
- [inbound freight costs](https://blog.customodal.com/tag/inbound-freight-costs)
- [incoterms](https://blog.customodal.com/tag/incoterms)
- [meet the team](https://blog.customodal.com/tag/meet-the-team)
- [ocean freight](https://blog.customodal.com/tag/ocean-freight)
- [parcel](https://blog.customodal.com/tag/parcel)
- [save money](https://blog.customodal.com/tag/save-money)
- [supplychain](https://blog.customodal.com/tag/supplychain)
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- [inbound](https://blog.customodal.com/tag/inbound)
- [priority1](https://blog.customodal.com/tag/priority1)
- [recession](https://blog.customodal.com/tag/recession)
- [shipping delay](https://blog.customodal.com/tag/shipping-delay)
- [4pl](https://blog.customodal.com/tag/4pl)
- [Analytics](https://blog.customodal.com/tag/analytics)
- [Customs](https://blog.customodal.com/tag/customs)
- [Dock Management](https://blog.customodal.com/tag/dock-management)
- [Downtime](https://blog.customodal.com/tag/downtime)
- [FLEX Freight Control](https://blog.customodal.com/tag/flex-freight-control)
- [Heavy Haul](https://blog.customodal.com/tag/heavy-haul)
- [International](https://blog.customodal.com/tag/international)
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- [In-House Fleet vs Virtual Fleet](https://blog.customodal.com/tag/in-house-fleet-vs-virtual-fleet)
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- [Inventory Management](https://blog.customodal.com/tag/inventory-management)
- [JIT](https://blog.customodal.com/tag/jit)
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- [LCL](https://blog.customodal.com/tag/lcl)
- [Maintenance Logistics](https://blog.customodal.com/tag/maintenance-logistics)
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- [Reverse Logistics](https://blog.customodal.com/tag/reverse-logistics)
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- [automated refunds](https://blog.customodal.com/tag/automated-refunds)
- [benjamin lorr](https://blog.customodal.com/tag/benjamin-lorr)
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- [bullwhip](https://blog.customodal.com/tag/bullwhip)
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- [central wisconsin manufacturing](https://blog.customodal.com/tag/central-wisconsin-manufacturing)
- [cheap logistics](https://blog.customodal.com/tag/cheap-logistics)
- [china](https://blog.customodal.com/tag/china)
- [choose local](https://blog.customodal.com/tag/choose-local)
- [cip](https://blog.customodal.com/tag/cip)
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- [dan hendrickson](https://blog.customodal.com/tag/dan-hendrickson)
- [dap](https://blog.customodal.com/tag/dap)
- [dayton freight](https://blog.customodal.com/tag/dayton-freight)
- [ddu](https://blog.customodal.com/tag/ddu)
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- [freight damage](https://blog.customodal.com/tag/freight-damage)
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- [fulltruckload](https://blog.customodal.com/tag/fulltruckload)
- [glossary](https://blog.customodal.com/tag/glossary)
- [holiday shipping](https://blog.customodal.com/tag/holiday-shipping)
- [how to switch ltl](https://blog.customodal.com/tag/how-to-switch-ltl)
- [importing](https://blog.customodal.com/tag/importing)
- [inboundfreight](https://blog.customodal.com/tag/inboundfreight)
- [industry 4.0](https://blog.customodal.com/tag/industry-4-0)
- [insurance](https://blog.customodal.com/tag/insurance)
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- [last mile](https://blog.customodal.com/tag/last-mile)
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- [newsletter](https://blog.customodal.com/tag/newsletter)
- [non-performance refunds](https://blog.customodal.com/tag/non-performance-refunds)
- [ocean shipping](https://blog.customodal.com/tag/ocean-shipping)
- [onboarding](https://blog.customodal.com/tag/onboarding)
- [our values](https://blog.customodal.com/tag/our-values)
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- [outsource](https://blog.customodal.com/tag/outsource)
- [overview](https://blog.customodal.com/tag/overview)
- [pallet](https://blog.customodal.com/tag/pallet)
- [pandemic](https://blog.customodal.com/tag/pandemic)
- [parcel audit](https://blog.customodal.com/tag/parcel-audit)
- [parcel refunds](https://blog.customodal.com/tag/parcel-refunds)
- [parcel shipping](https://blog.customodal.com/tag/parcel-shipping)
- [partnership](https://blog.customodal.com/tag/partnership)
- [permits](https://blog.customodal.com/tag/permits)
- [predications](https://blog.customodal.com/tag/predications)
- [purchasing management](https://blog.customodal.com/tag/purchasing-management)
- [questions](https://blog.customodal.com/tag/questions)
- [reshoring](https://blog.customodal.com/tag/reshoring)
- [risk management](https://blog.customodal.com/tag/risk-management)
- [rose george](https://blog.customodal.com/tag/rose-george)
- [routing guide](https://blog.customodal.com/tag/routing-guide)
- [save time](https://blog.customodal.com/tag/save-time)
- [sea freight](https://blog.customodal.com/tag/sea-freight)
- [seafreight](https://blog.customodal.com/tag/seafreight)
- [shipment](https://blog.customodal.com/tag/shipment)
- [shipping 101](https://blog.customodal.com/tag/shipping-101)
- [shipping clerk](https://blog.customodal.com/tag/shipping-clerk)
- [shipping costs](https://blog.customodal.com/tag/shipping-costs)
- [skid](https://blog.customodal.com/tag/skid)
- [staff](https://blog.customodal.com/tag/staff)
- [standley](https://blog.customodal.com/tag/standley)
- [supply chain resilience](https://blog.customodal.com/tag/supply-chain-resilience)
- [team](https://blog.customodal.com/tag/team)
- [testimonial](https://blog.customodal.com/tag/testimonial)
- [trade show shipping](https://blog.customodal.com/tag/trade-show-shipping)
- [transportation](https://blog.customodal.com/tag/transportation)
- [transportation management](https://blog.customodal.com/tag/transportation-management)
- [truck broker](https://blog.customodal.com/tag/truck-broker)
- [truckload specialist](https://blog.customodal.com/tag/truckload-specialist)
- [ups shipping](https://blog.customodal.com/tag/ups-shipping)
- [yellow](https://blog.customodal.com/tag/yellow)

#### Recent Articles

[ How Manufacturers Can Lower LTL Costs Without Hurting Service ](https://blog.customodal.com/how-manufacturers-can-lower-ltl-costs-without-hurting-service)

[ When Should Manufacturers Rebid Freight Contracts? ](https://blog.customodal.com/when-should-manufacturers-rebid-freight-contracts)

[ LTL vs Truckload: Which Is More Cost-Effective for Manufacturers? ](https://blog.customodal.com/ltl-vs-truckload-which-is-more-cost-effective-for-manufacturers)

[ How to Audit Your Freight Spend in 30 Days ](https://blog.customodal.com/how-to-audit-your-freight-spend-in-30-days)

[ Contract Freight vs Spot Freight for Manufacturers ](https://blog.customodal.com/contract-freight-vs-spot-freight-for-manufacturers)

[** PREVIOUS ARTICLE ](https://blog.customodal.com/evaluate-your-in-house-fleet-for-effectiveness)

[ NEXT ARTICLE ** ](https://blog.customodal.com/understanding-capacity-shipment-surcharge-in-ltl-shipping)

[Customodaladmin](https://blog.customodal.com/author/customodaladmin) October 20, 2020

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![LTL Shipping: The Basics](https://blog.customodal.com/hubfs/Imported_Blog_Media/shutterstock_1147511855-1-2.jpg)

Less than truckload shipping, or “LTL” in industry slang,  is a cost-effective alternative for smaller shipments that won’t completely fill a truck.   LTL shipping companies operate local fleets for pickup and delivery which are connected via hub-and-spoke terminal networks.  Freight moves from pickup truck to local terminal through a series of cross-dock or sort facilities to a local delivery terminal and delivery truck.  These LTL networks operate in similar fashion to parcel networks; just hauling larger, usually palletized freight.  Shippers are charged for the space of their cargo instead of a full truckload (FTL). 

 

## When Should You Use LTL Shipping?

 

Shipments that will not fill up a full truck and weigh between 150 and 15,000 pounds are good candidates for LTL shipping. The most common LTL shipments are one to 6 pallets in volume.

 

In the event you *can* fill up a full truck, but your pallets are destined for different locations, you may want to consider splitting them up using [LTL](https://customodal.com/blog/ltl-vs-ftl-freight-4-difference-you-must-know/). Sending one truck across the continental U.S. and racking up miles isn’t logical. By splitting the freight into smaller loads, you’ll effectively cut costs and shorten transit time.

 

## What Are LTL Rates Based On?

 

Every carrier has their own combination of minimums and base rates called a tariff.  Many of the variables in LTL pricing are standardized through the [National Motor Freight Classification](http://www.nmfta.org/).  Here are the main variables considered when pricing LTL shipments:

 

- Item – the commodity shipped or type of cargo
- [Density](https://customodal.com/blog/how-to-calculate-density-for-ltl-freight-costs/) – dimensions of the shipment relative to the weight
- Weight – tiered pricing dependent on weight
- Distance – how far the freight is shipped
- [Packaging](https://customodal.com/proper-packaging-saves-money/) — Crated or skidded, knocked down or stood-up, etc.
- Accessorial – charges for services beyond dock-to-dock pickup and delivery

 

There are also discounts like those we get in our volume pricing agreements with carriers that impact the cost.

 

## What Are the Advantages and Disadvantages of LTL Shipping?

 

The advantages of LTL include predictable transit times, variety of transit time & price combinations and it’s a less expensive way to move small shipments.  After-all, who wants to pay for a whole truck to move a few skids?

 

[Disadvantages of LTL](https://customodal.com/blog/avoid-these-5-common-ltl-shipping-mistakes/) shipping are higher unitized shipping cost than full truckload moves, rigid structure of LTL networks, and damage caused by multiple handling events as freight travels from terminal to terminal.  However, you can mitigate some damage risk with proper packaging.

 

### Get a Free Rate Comparison on Your LTL Shipping

 

We have long standing relationships and volume-discount pricing with top, trusted LTL freight providers. Our customers save money and know their LTL freight is safe with these reliable carriers. [Contact us](https://customodal.com/contact/) to get a free, no-obligation rate comparison on your LTL shipping. 

[EXACT Inbound Freight](https://blog.customodal.com/tag/exact-inbound-freight) [Freight Costs](https://blog.customodal.com/tag/freight-costs) [Blog](https://blog.customodal.com/tag/blog) [FLEX Outbound Freight](https://blog.customodal.com/tag/flex-outbound-freight) [Featured](https://blog.customodal.com/tag/featured)

## Related Articles

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## [Spot vs. Contract Rates in LTL Truckload Shipping](https://blog.customodal.com/spot-vs-contract-rates-in-ltl-truckload-shipping)

 In the complex world of LTL (Less Than Truckload) shipping, businesses are often confronted with the choice between Spot and Contract rates. These...

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## [How Customodal Can Help Shipping Clerks](https://blog.customodal.com/how-customodal-can-help-shipping-clerks)

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[![Is My Business Large Enough to Need Shipping Help?](https://blog.customodal.com/hubfs/large-enough-to-need-3pl.webp) ](https://blog.customodal.com/2022/08/05/is-my-business-large-enough-to-need-shipping-help)

## [Is My Business Large Enough to Need Shipping Help?](https://blog.customodal.com/2022/08/05/is-my-business-large-enough-to-need-shipping-help)

 Should I partner with a 3PL? There are a lot of things to manage when you’re overseeing a business. Shipping is a significant component of any...

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