LTL Freight 101: A Business Owner's Complete Guide

Less-than-truckload shipping can save you money versus full truckload — if you know how to use it right. We break it all down.

Less-than-truckload (LTL) freight is the right choice for businesses that need to ship pallets or large items but don't have enough volume to fill an entire truck. Here's everything you need to know.

What is LTL freight?

LTL means your shipment shares trailer space with other shippers' goods. You only pay for the space your freight occupies, making it far more cost-effective than booking a full truckload (FTL) when you're shipping 1–6 pallets.

How LTL pricing works

LTL rates are determined by several factors: freight class (NMFC), weight, dimensions, origin/destination lanes, and any applicable accessorial charges (liftgate, residential delivery, inside delivery, etc.).

Freight classification explained

NMFC classes run from 50 to 500 — the higher the class, the higher the rate. Class is based on density, stowability, handling, and liability. Many shippers default to a higher class than needed; a proper classification review can meaningfully reduce costs.

Choosing the right LTL carrier

Different carriers excel in different regional lanes. Old Dominion is known for low damage rates. SAIA has strong coverage in the Southeast. Estes is reliable in the mid-Atlantic. Rather than managing multiple carrier relationships, a single freight broker or logistics partner can route each shipment to the best carrier automatically.

Common LTL mistakes to avoid

- Inaccurate freight descriptions (leads to reclassification fees) - Ignoring accessorial charges in your budget - Not requesting a quote comparison before booking - Assuming your current carrier has the best rate for every lane