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12/26/25, 3:11 PM
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.