LTL (Less Than Truckload) shipping is when multiple shippers share space on a single truck, typically for shipments ranging from 150 to 10,000 pounds. This means you pay only for the portion of the truck that your freight occupies. In contrast, FTL (Full Truckload) shipping is used when a shipment requires the entire truck, usually because the cargo exceeds 10,000 pounds or fills the truck’s capacity. FTL shipments are typically delivered directly to the destination without any stops, whereas LTL shipments may be loaded and unloaded multiple times at different terminals along the route.

The primary advantage of LTL shipping is cost savings since you only pay for the portion of the truck that your shipment uses, sharing transportation costs with other shippers. LTL shipping is also more environmentally friendly because consolidating multiple shipments into one truck reduces fuel consumption and emissions. Additionally, it provides greater flexibility for businesses that don’t have enough freight to fill an entire truck, allowing them to ship smaller quantities as needed. LTL carriers often offer frequent service schedules, which can ensure consistency in shipments.

One of the main drawbacks of LTL shipping is that it generally results in longer transit times compared to FTL. Since LTL shipments involve multiple stops for pickups and deliveries, your freight may take longer to reach its destination. Another disadvantage is the increased risk of damage, as LTL freight is often handled multiple times at various hubs and terminals, raising the chance of mishandling or damage. Lastly, tracking in LTL shipments may not be as detailed or real-time as FTL, since the freight may pass through several hands during its journey.

Carriers typically provide limited liability coverage based on the freight class, weight and value of the shipment. While you may receive reimbursement for a damaged or lost LTL shipment, this amount is capped and may not cover the full value of the goods. To ensure full protection, it is advisable to purchase additional freight insurance, which offers more comprehensive coverage compared to the carrier’s default liability limits. Freight insurance can cover the full value of your shipment in the event of loss or damage.

The best way to ship LTL is to ensure that your shipment is properly packaged and secured. Goods should be placed on pallets or crated to protect them from damage during loading and unloading. It is also important to accurately classify your freight according to the National Motor Freight Classification (NMFC) system and provide correct dimensions and weight. This will help prevent reclassification fees and ensure smoother transit. Additionally, selecting a reputable LTL carrier with a strong network is crucial for timely and efficient delivery. Many businesses also benefit from using a third-party logistics (3PL) provider to handle the complexities of LTL shipping and to find competitive rates.

LTL shipments are priced based on several factors. One key element is the freight class, which is determined by the National Motor Freight Classification (NMFC) system and considers factors such as weight, density, stowability, handling and liability. Higher-class freight typically costs more to ship. Weight is another factor; although heavier shipments cost more, carriers offer discounts as weight thresholds increase. Distance also plays a significant role, with longer hauls costing more. Additionally, carriers often apply accessorial charges for extra services, and the density of the shipment—measured by the weight per cubic foot—can influence pricing, with higher-density shipments typically incurring lower rates.

Accessorial fees are additional charges that carriers apply for services beyond standard LTL shipping. Common accessorial fees include charges for liftgate service, which is necessary when delivering to locations without a dock; inside delivery, where the driver needs to bring the shipment inside a facility rather than delivering it to the curb; and residential delivery, where extra fees apply for deliveries to non-commercial areas. Limited access fees are also common for hard-to-reach locations such as schools or construction sites. Reclassification fees may also be added if the shipment’s freight class or dimensions are incorrectly declared. These fees can significantly affect the total cost of an LTL shipment.

The bill of lading (BOL) is a legal document that acts as a contract between the shipper and the carrier. It outlines the details of the shipment, including the names and addresses of both the shipper and the consignee, the freight class, weight, and description of the goods, as well as any special handling instructions. The BOL serves multiple purposes: it is a receipt for the goods being transported, a document that specifies the terms of the shipment, and a record of the freight classification. It is crucial for ensuring that the carrier understands how to handle and deliver the goods correctly. Inaccuracies on the BOL can lead to delays, incorrect charges, or disputes, so it's important to fill it out accurately and completely.

Freight class is a critical factor in determining the cost of LTL shipping. The freight class is determined by the National Motor Freight Classification (NMFC) system and is based on four key factors: density, stowability, handling and liability. Density, which refers to the weight per cubic foot of the shipment, is one of the most significant determinants. Freight that is less dense or takes up more space is generally classified at a higher (and more expensive) class. Stowability refers to how easily the freight can be packed with other items, while handling refers to the ease or difficulty of moving the freight. Liability involves the risk of damage or theft. Incorrectly classifying your shipment can lead to costly reclassification fees or delays, so it's important to get it right by consulting NMFC guidelines or working with a knowledgeable logistics provider.

LTL shipments to residential locations often require additional services compared to commercial deliveries, such as the use of a liftgate to unload the goods or inside delivery to bring the freight into the residence. These factors can lead to additional accessorial fees, as residential areas may not have loading docks, and deliveries may require extra time and effort. Carriers typically charge more for residential deliveries due to these logistical challenges. It’s important to account for these potential costs when planning an LTL shipment to a non-commercial address and to notify the carrier in advance if residential delivery is needed.

LTL carriers often have restrictions on the dimensions and weight of shipments that can fit on their standard trailers. Shipments that exceed these limits may be classified as over-dimensional freight, which requires special handling and may result in additional fees. Over-dimensional freight is harder to stow and may limit the carrier’s ability to consolidate other shipments, which is why carriers charge a premium for such shipments. It’s important to communicate with the carrier beforehand if your freight exceeds the standard size or weight limits, so they can make proper accommodations and avoid delays or extra charges.

If your freight is damaged, lost, or doesn’t arrive as expected, you’ll need to file a formal claim with the carrier. The claim must be filed within a specific time frame, which is typically nine months from the delivery date (or from when the shipment should have been delivered). It's crucial to act quickly and ensure all documentation is in order.

The following steps outline the general process for filing and handling LTL claims:

1. Inspect the Freight Upon Delivery: Always inspect your freight thoroughly upon delivery. If there are any visible signs of damage, it’s essential to note this on the delivery receipt or bill of lading (BOL) while the driver is still present. This documentation is key evidence for your claim. If the damage is discovered later (concealed damage), you still have a right to file a claim, but you should notify the carrier within five days of delivery.
2. Document the Damage: Take detailed photos of any visible damage and keep all packaging materials. Also, gather relevant paperwork such as the bill of lading, packing lists, and proof of delivery. This documentation is critical to support your claim and demonstrate that the shipment was in good condition when handed over to the carrier but was damaged during transit.
3. Submit a Claim: To officially file an LTL claim, you’ll need to submit a formal claim letter to the carrier, which includes a clear, written statement of the problem and the amount you're seeking as compensationas well as:
   • The shipment’s details (e.g., shipment number, date and BOL number).
   • A description of the damage or loss.
   • The amount being claimed (based on the value of the goods lost or damaged).
   • Copies of the relevant documentation such as the BOL, proof of delivery and evidence of the damage.
4. Carrier’s Review and Response: Once the claim is submitted, the carrier will investigate the issue. This process may involve reviewing internal reports from drivers and terminal staff, inspecting the documentation provided, and possibly requesting additional information from the shipper. Carriers are legally required to respond to claims within 120 days, but many try to settle claims sooner. They may accept the claim and offer compensation, reject it or request additional documentation.
5. Compensation: If the claim is approved, the carrier will reimburse the shipper according to the terms of the claim. However, LTL carriers typically offer limited liability coverage, which means their compensation is based on factors like the freight class, weight, and value—not necessarily the full value of the damaged or lost goods. If the shipper purchased additional freight insurance, the insurance provider may cover the remaining value of the claim.

Key Points to Consider:

• Limited Liability: LTL carriers provide limited liability coverage, meaning their payout is based on predetermined rates for the freight class and weight, often lower than the actual value of the goods. For example, low-class items like scrap metal have lower liability coverage than high-class items like electronics.
• Freight Insurance: For full protection, many shippers purchase freight insurance. This covers the full declared value of the shipment, providing greater compensation in case of loss or damage. Relying solely on a carrier’s limited liability can result in insufficient compensation for higher-value goods.
• Concealed Damage: If damage isn’t visible at the time of delivery but is discovered later (concealed damage), claims are more difficult to process. Carriers may argue that the damage didn’t occur in transit, so shippers should file a concealed damage claim as soon as possible, typically within five days, to improve their chances of approval.
• Claim Denials: Claims may be denied if the damage or loss is not sufficiently documented, if the bill of lading was signed without noting visible damage, or if the claim was filed outside the allowable time frame. In such cases, shippers may need to appeal the decision or seek coverage from their insurance provider.