FTL and LTL

What it means

FTL and LTL are two modes of road freight. FTL, full truckload, is when one shipment fills the whole vehicle and travels directly from shipper to consignee. LTL, less than truckload, is when the vehicle is shared by shipments from several customers.

LTL is cheaper for smaller volumes, such as a few pallets, because the customer pays only for the space used. It is slower, though, since shipments are collected, transferred at cross-docks and delivered along a route, and the risk of handling damage is higher.

FTL is faster, more predictable and safer, because the goods are not reloaded between loading and destination. It pays off for large volumes or sensitive goods, where LTL would not be much cheaper anyway.

How it works in practice

LTL pricing is based on the number of pallets, weight or loading metres the shipment occupies, plus surcharges for fuel or tolls. With FTL you pay for the whole vehicle on the route, regardless of how much capacity is actually used.

A 3PL partner or freight forwarder can help choose the mode, organising transport under a freight forwarding contract and comparing quotes. In international road transport, goods travel with a CMR consignment note.

Companies often combine both: full trucks between warehouses and LTL shipments to smaller customers. For long routes, intermodal transport is also an option, with part of the journey by rail, which can be cheaper and greener.

What to watch out for

With LTL, goods must be well packed and labelled because they are reloaded several times. Incorrect weight or dimensions lead to surcharges, and damage must be noted on the CMR on receipt, or a claim against the carrier is hard to pursue.

In international transport, the carrier's liability for loss or damage is limited by the CMR Convention to a set amount per kilogram. For valuable goods this may not be enough, so separate cargo insurance is advisable.