Less than Truckload (LTL) is a road-freight method in which your shipment shares trailer capacity with cargo from other shippers.
This model is particularly efficient for smaller cargo quantities because transport costs are shared between shippers. You pay for the capacity your cargo actually uses, although transit is generally longer because consolidation, terminal handling and additional stops may be involved.
Process
1. Cargo-data collection
We assess the number of cargo units, weight, dimensions, collection point, delivery address and required deadline.
2. Collection and delivery to terminal
The shipment is collected from the shipper and, where a terminal-based model is used, delivered to a consolidation terminal.
3. Consolidation
At the terminal, shipments from different customers are grouped by common destination and the main transport leg is planned.
4. Main transport leg
The consolidated shipments are moved along the main route to the destination region or local terminal.
5. Distribution and delivery
On arrival, shipments are separated by consignee and delivered by local transport to their final addresses.
Cargo-data collection
Consolidation
Distribution and delivery
Collection and delivery to terminal
Main transport leg
- 1
Cargo-data collection
- 2
Collection and delivery to terminal
- 3
Consolidation
- 4
Main transport leg
- 5
Distribution and delivery
Advantages
LTL is one of the most widely used freight models among small and medium-sized businesses because it offers several practical advantages:
Cost efficiency
Because transport costs are shared between shippers, you pay only for the capacity occupied by your cargo.
Flexibility
There is no need to wait until enough orders accumulate to justify booking an entire vehicle.
Frequent departures
Because LTL networks are widely used, frequent departures are available on many routes, making inventory replenishment easier to plan.
What is the difference between LTL and FTL?
Before transport begins, it is important to decide which freight model is better suited to your cargo volume. Below is a detailed comparison.
| Kriterijus | LTL | FTL |
|---|---|---|
| Privacy | Shared with other shippers | Dedicated to one shipper only |
| Pricing | Pay for the volume used (CBM) | Fixed price for the entire truck |
| Speed / Transit time | Longer, includes the consolidation process | Faster, with fewer stops and additional processes |
| Security | More handling operations and therefore greater exposure to risk | Sealed at origin, with lower exposure to handling risk |
| Flexibility | Greater flexibility, with the possibility of serving different destinations within the overall logistics chain | Less flexible because the vehicle capacity is dedicated to one transport direction |
| Cost efficiency | More economical for smaller cargo volumes | More economical for larger cargo volumes |
| Ideally suited for | Small and medium shipments (<15 CBM), non-perishable, price-sensitive and relatively low-risk cargo. | Larger shipments (15–20 CBM+), fragile or high-value cargo. |
How does LTL consolidation work?
- Consolidation is a fundamental part of LTL transport and one of the reasons this model is so widely used.
- LTL consolidation is the process of collecting shipments from different shippers and bringing them to a common distribution or consolidation centre. Logistics specialists assess cargo flows, quantities, dimensions and other relevant characteristics and group shipments by destination and transport requirements.
- The grouped shipments are then loaded into a shared vehicle according to cargo type, dimensions, weight and unloading sequence. Once the cargo is safely loaded, the truck departs on the main transport leg.
- When the cargo reaches the destination region, usually a deconsolidation terminal, the process is reversed: the truck is unloaded and individual shipments are separated and prepared for final delivery.
- The remaining journey is completed using suitable local vehicles that deliver the cargo directly to the customer’s warehouse or other final address.
FAQ
FTL (Full Truckload) means booking the entire truck or semi-trailer for your goods only. LTL (Less than Truckload) means your cargo shares trailer capacity with goods from other customers, so you pay only for the space used, typically in loading metres (LDM), pallet positions or another agreed unit.
LTL pricing is usually based on the space occupied by the cargo, such as loading metres (LDM) or pallet positions, together with weight and other tariff factors. The applicable charge is determined according to the carrier's pricing rules and the factor that drives capacity use.
LTL shipments must be collected from different shippers, brought to regional consolidation terminals, grouped onto common routes and separated again near destination. These additional stages add time to the overall transit.
Because LTL cargo may be handled at consolidation terminals, it should be packed securely, preferably palletised where suitable, wrapped or otherwise protected, and clearly labelled to reduce the risk of damage or loss during handling.
