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Less-Than-Truckload (LTL) Shipping: When to Use It

Less-than-truckload (LTL) shipping often bridges the gap between parcel and full truckload, and knowing how they compare helps shippers choose the right option.

 

This guide serves as a practical resource for understanding the fundamental differences between parcel, LTL, and full truckload (FTL) shipping. We will focus on the operational mechanics, weight thresholds, and handling requirements of each mode to help you identify the most efficient way to move your goods.  

 

In This Guide:

By the end of this guide, you will have a clear understanding of the trade-offs in cost, speed, and freight handling across these shipping modes, allowing you to choose the right option for every shipment with confidence. 

How LTL Shipping Works

The LTL shipping network operates on a hub-and-spoke model designed to maximize trailer capacity and minimize costs for mid-sized shipments. In this model, local terminals act as the "spokes," collecting palletized freight from various businesses in the area and transporting them to a central “hub.” At the hub, shipments are sorted, consolidated with other freight moving in the same direction, and loaded onto long-haul trailers for the next leg of the journey.

Because LTL shipments share trailer space, carriers can offer much lower rates than a dedicated full truckload. However, this consolidation process traditionally involves more handling as freight moves through multiple terminals. At OD, we differentiate our service by utilizing advanced planning technology and 28-foot trailers (aka pup trailers) to build more direct loads. We also employ deck bar systems to maximize trailer capacity while significantly reducing the need for manual handling, which helps protect your freight and reduce transit times.

To understand the basics of this process, you can view our Overview of LTL Shipping video.

Key elements of the LTL process include: 

  • Hub-and-Spoke Network: Local service centers feed into centralized hubs for sorting and consolidation before final delivery.

  • Typical Shipment Size: Shipments generally weigh between 150 and 15,000 pounds and typically consist of up to 6 pallets, though some carriers accommodate up to 10–12 pallets.

  • Packaging Requirements: Freight must be secured, as proper packaging and shrink-wrapping are critical for stability during multiple handling points.

  • OD Handling Advantage: Unlike many competitors, we provide packaging guidance and use specialized dunnage to reduce the chance of damage to occur. We also offer Security Divider Services for unusually shaped, high-value, or uncrated shipments that require extra protection. 

  • Freight Classification: Rates are determined by freight class and density, which are regulated by the National Motor Freight Classification (NMFC) system.

  • Cost-Sharing Model: Shippers pay only for the specific trailer space their freight occupies, making it a cost effective option for smaller freight volumes.

  • LTL Market Stability: Unlike the volatile truckload market, LTL pricing is typically more protected by steady market forces and long-term service agreements.

  • Common Accessorial Services: Standard LTL service can be supplemented with specialized options like liftgate delivery, change to delivery appointment, inside delivery, and hazardous materials handling. 

Understanding Shipping Modes: Parcel vs. LTL vs. Full Truckload

The primary differences between parcel, LTL, and FTL shipping are defined by shipment size, how trailer space is utilized, and the specific needs of the business. Parcel shipping is for individual packages under 150 pounds, while FTL is reserved for large shipments, often exceeding 10,000 pounds or 12 pallets, that require a dedicated trailer. LTL serves as the critical middle ground, handling the vast majority of mid-sized business-to-business (B2B) freight.

When choosing between these modes, shippers must weigh the trade-offs between cost, transit times, and handling risk. Parcel is generally the fastest and most automated, but has the highest cost per unit. FTL offers the most control and fastest point-to-point speed for large volumes. LTL provides the best balance of cost and speed for shipments that are too large for a parcel van but don't justify the expense of a full 53-foot trailer.

 

Comparing Parcel, LTL, and FTL

CriteriaParcel ShippingLess-Than-Truckload (LTL)Full Truckload (FTL)
Shipment SizeUp to 150 lbs per package150-15,000 lbs; typically up to 6 pallets (some carriers allow more)Over 10,000 lbs or more than 10-12 pallets
PackagingIndividual boxes; no palletsPalletized or crated freight; shared trailer spaceDedicated trailer for a single shipper
Cost StructureBased on weight, dimensions, distance, and service level (dimensional weight may apply) Based on freight class, weight, dimensions, density, distance, and accessorial services Per-mile or contracted rates; higher total cost, lower per-unit cost at scale
Transit SpeedFast; 1-5 days for ground; faster for express Variable; typically 1-7 days depending on LTL service level (standard, expedited, or guaranteed)Fast; direct point-to-point delivery 
Handling & RiskHighly automated sorting; frequent handling Standard hub-and-spoke sorting or minimized via direct/volume LTL options; security divider service availableMinimal handling; trailer sealed from origin to destination 
Best Use CaseSmall packages, e-commerce, residential deliveries Mid-sized B2B freight; recurring shipments below truckload volume; shippers that need sort and seg Large volumes, high-value or time-sensitive freight 

For more technical insight into classification, the National Motor Freight Traffic Association (NMFTA) provides an in-depth discussion of parcel vs. LTL weight limits and shipping characteristics.

Choosing the Right Shipping Method

Selecting the right shipping mode requires a careful evaluation of your shipment’s size, packaging, handling requirements, and delivery timeline. By understanding whether parcel, LTL, or FTL is the right fit for a shipment, you can better balance the trade-offs in cost and transit speed.

For shipments that fall near key thresholds, such as a 140-pound package or a 10-pallet load, it helps to compare quotes across modes. Depending on your schedule and budget, choosing FTL may be best for time-critical freight, while an efficient LTL service can deliver the ideal balance of cost and transit time.

When planning your shipments, always account for necessary accessorial services, as these can impact which mode provides the best overall value. 

Ready to Ship LTL?

Contacting an OD Solutions Specialist today can make all the difference in choosing the right mode of shipping.

Contact a Solutions Specialist

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Frequently Asked Questions

Less-than-truckload (LTL) shipping is a shared-capacity freight option for mid-sized shipments that are too large for parcel carriers but do not require a full truck. LTL freight is consolidated into a single trailer with other shippers' goods, allowing businesses to share the total cost of transportation.

 

  • Typical weight range: 150-15,000 lbs. 
  • Packaging type: Freight must be packaged properly for movement via forklift. 
  • Cost structure: Pricing based on National Motor Freight Classification (NMFC) freight class, weight, dimensions, distance, and carrier’s base rate. 
  • Transit speed: Generally 1-4 days at OD, though industry standards can range up to 7 days. OD also offers expedited solutions for faster transit times and guaranteed delivery windows. 
  • Best-fit use cases: B2B freight, recurring commercial shipments, and shippers who need specialized services like sort and segregate. 

Parcel shipping is a fast, package-based option for small, lightweight shipments that do not require pallets. This mode is highly automated and designed for door-to-door delivery, making it the primary choice for e-commerce fulfillment and residential shipments. 

 

  • Typical weight limit: Up to 150 lbs per individual package. 
  • Packaging type: Individual boxes or envelopes; pallets are not used. 
  • Cost structure: Rates are based on weight, dimensions, and distance, with dimensional weight often applying to large but light packages. 
  • Transit speed: Very fast; typically 1-5 days for ground and overnight options for express. 
  • Best-fit use cases: Small businesses, residential consumer deliveries, and e-commerce orders. 

Full truckload (FTL) shipping involves reserving an entire 48- or 53-foot trailer for a single shipper’s freight. FTL moves directly from the origin to the destination without stopping at intermediate terminals, which reduces transit time and minimizes the risk of damage from handling. 

 

  • Typical threshold: Shipments exceeding 15,000 pounds or requiring more than 10-12 pallets. 
  • Packaging type: A dedicated trailer; the shipper can load the trailer however they choose. 
  • Cost structure: Priced via per-mile or contracted rates. For OD TL brokerage services, we leverage our carrier network to mitigate the typically high costs of specialized permits and escorts. 
  • Best-fit use cases: Large volume movements, high-value cargo requiring minimal handling, or "milk runs" where a large shipment is picked up or dropped off in multiple locations. 

The main difference is size and packaging. Parcel shipping is for individual packages under 150 pounds that do not require pallets. LTL is for freight weighing 150 to 15,000 pounds that is for transport.

LTL involves sharing trailer space and costs with other shippers, which requires freight to move through a terminal network. FTL dedicates an entire trailer to one shipper, moving directly from origin to destination without stopping at terminals.

Choose LTL when your shipment is too heavy for a parcel carrier (over 150 lbs) but doesn't fill a whole truck (under 15,000 lbs or 12 pallets). It is the ideal choice for mid-sized B2B shipments where you want to pay only for the space you use.