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Why is financial management within a TMS crucial for trucking companies?

12/26/25, 3:11 PM

FTL vs LTL Shipping: What Carriers Need to Know

FTL vs LTL Shipping: What Carriers Need to Know

A shipper calls with 8,000 pounds of freight heading 600 miles. Do you quote it as a full truckload or suggest LTL? The answer depends on more than just weight.

 

Understanding the difference between FTL and LTL shipping shapes how carriers price loads, plan routes, and build their business model. Some fleets focus exclusively on one. Others handle both. The right choice depends on your equipment, your market, and where you see the best margins.

 

Here is what every carrier should understand about full truckload versus less than truckload freight.

 

What Is Full Truckload Shipping?

 

Full truckload, or FTL, means one shipper's freight fills the entire trailer. The truck picks up at one origin, delivers to one destination, and hauls only that customer's product.

 

FTL does not always mean the trailer is physically full. A shipper might book a full truckload for 20,000 pounds that only fills half the trailer space. What makes it FTL is exclusivity. No other freight shares the truck.

 

Typical FTL characteristics:

 

  • Single shipper, single consignee

  • Direct point-to-point routing

  • Freight weight usually 10,000+ pounds

  • Shipper pays for entire trailer capacity

  • Faster transit times with no intermediate stops

 

Most carriers operating dry vans, reefers, or flatbeds focus primarily on FTL freight. It offers simpler operations, predictable scheduling, and straightforward cost per mile calculations.

 

What Is Less Than Truckload Shipping?

 

Less than truckload, or LTL, combines multiple shippers' freight on a single trailer. Each shipper pays only for the space their cargo occupies rather than the entire truck.

 

LTL freight typically moves through a network of terminals. A driver picks up several shipments locally, delivers them to a terminal, where they get consolidated with other freight heading the same direction. Another driver handles the linehaul to a destination terminal, where local drivers complete final delivery.

 

Typical LTL characteristics:

 

  • Multiple shippers sharing trailer space

  • Freight weight usually 150 to 10,000 pounds

  • Terminal-based hub and spoke network

  • Multiple handling points during transit

  • Longer transit times due to consolidation

  • Pricing based on weight, dimensions, freight class, and distance

 

LTL carriers include large national networks like Old Dominion, XPO, and Estes. Regional LTL carriers serve specific geographic areas with faster transit within their footprint.

 

FTL vs LTL: Side-by-Side Comparison

 

The differences between full truckload and LTL shipping affect everything from pricing to operations:

 

Factor

Full Truckload (FTL)

Less Than Truckload (LTL)

Freight size

10,000+ lbs or full trailer

150 - 10,000 lbs

Trailer exclusivity

One shipper per truck

Multiple shippers share space

Pricing model

Per mile or flat rate

Per hundredweight (CWT) + accessorials

Transit time

Fastest (direct routing)

Slower (terminal transfers)

Handling

Loaded once, unloaded once

Multiple touches through network

Damage risk

Lower

Higher (more handling)

Scheduling flexibility

High

Fixed terminal schedules

Equipment needs

Standard trailers

Dock-height trailers, liftgates

 

How FTL and LTL Rates Compare

 

Pricing works completely differently between these two freight types. Understanding the distinction helps carriers evaluate which model fits their operation.

 

FTL Rate Structure

 

Full truckload rates typically calculate as:

 

  • Rate per mile - Most common, varies by lane and market conditions

  • Flat rate - Single price for the entire load regardless of miles

  • Rate per hundredweight - Less common, used for heavy freight

 

Current FTL rates range from $2.00 to $3.50 per mile depending on equipment type, lane, and market conditions. Deadhead miles and repositioning affect the true profitability of any quoted rate.

 

LTL Rate Structure

 

LTL pricing involves multiple variables:

 

  • Weight - Charged per hundredweight (CWT)

  • Freight class - NMFC classification based on density, handling, and liability

  • Distance - Origin and destination zip codes

  • Accessorials - Liftgate, inside delivery, appointment fees

  • Dimensional weight - Space-based pricing for light, bulky freight

 

LTL carriers use complex tariff systems that make tracking profitability metrics more challenging than straightforward FTL operations.

 

When Shippers Choose FTL Over LTL

 

Shippers select full truckload service when:

 

  • Freight volume justifies dedicated trailer space

  • Speed matters and terminal delays are unacceptable

  • Cargo is fragile or high-value and cannot risk multiple handling

  • Shipment size exceeds LTL weight thresholds

  • Cost per pound favors FTL over LTL rates

 

The breakeven point varies, but shipments over 8,000 to 10,000 pounds often cost less as FTL than LTL. Shippers doing the math frequently discover that paying for an entire truck makes more sense than paying LTL rates for heavy freight.

 

Partial Truckload: The Middle Ground

 

Between FTL and LTL sits partial truckload, sometimes called volume LTL or PTL. This covers shipments too large for standard LTL pricing but not enough to justify full truckload rates.

 

Partial truckload typically means:

 

  • 6 to 18 pallets or 8,000 to 27,000 pounds

  • Dedicated trailer space without filling entire truck

  • Fewer handling points than standard LTL

  • Pricing between LTL and FTL rates

 

Some carriers specialize in consolidating partials, combining two or three shippers' freight on a single trailer moving the same direction. This requires sophisticated load management capabilities but can generate strong margins when executed well.

 

FTL vs LTL: Which Should Carriers Focus On?

 

Most independent carriers and small to mid-size fleets operate in the FTL space. Here is why:

 

FTL Advantages for Carriers

LTL Challenges for Carriers

Simpler operations

Requires terminal network

Direct shipper relationships

Capital-intensive infrastructure

Flexible scheduling

Complex pricing systems

Lower startup costs

Higher claims exposure

Straightforward billing

Multiple accessorial tracking

Predictable revenue per load

Density management challenges

 

Running an LTL operation requires significant infrastructure. Terminals, dock workers, freight handling equipment, and sophisticated routing software create barriers that favor established carriers with scale.

 

FTL carriers can launch with a truck, a trailer, and access to load boards. Ray Cargo grew from 50 to 350+ trucks focusing on FTL operations with strong systems and financial visibility.

 

Managing Multiple Load Types

 

Some carriers handle both FTL freight and occasional partials or volume shipments. This diversification requires systems that track different pricing models, accessorial charges, and billing requirements.

 

A carrier-first TMS should accommodate:

 

  • Per-mile and flat-rate FTL pricing

  • Weight-based partial load calculations

  • Accessorial charge tracking for detention, lumper fees, and special services

  • Multi-stop load management for consolidated freight

  • Profitability analysis across different load types

 

Real-time analytics reveal which freight types generate the strongest margins for your specific operation. Some lanes favor FTL. Others might support profitable partial consolidation. Data shows which strategy works best.

 

The Bottom Line for Carriers

 

Full truckload and LTL serve different market needs. FTL moves large shipments fast with minimal handling. LTL makes small shipments economical through consolidation and shared capacity.

 

For most carriers, FTL offers the clearest path to profitable operations. Simpler pricing, direct routing, and lower infrastructure requirements let fleets focus on what matters: moving freight efficiently and getting paid fairly.

 

Whether you haul exclusively FTL or mix in partials, the key is knowing your costs, tracking your margins, and billing accurately for every service you provide.

 

Datatruck is the carrier-first TMS built to manage truckload operations from dispatch to invoice. Track load profitability, capture detention charges, and see exactly which freight generates margin.

 

Book a free demo and see how the right TMS makes load management effortless.


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