Warehouse & logistics
Less-Than-Truckload (LTL) Freight
By the Supply Chain Manager team · Updated October 16, 2026
Less-than-truckload (LTL) freight is a shipment too small to fill a truck, carried alongside other shippers' goods and priced by weight, size and distance.
LTL is cheaper than paying for a full truck (FTL) for a few pallets, but it usually takes longer because freight is consolidated and moved through carrier terminals, and it has more handling and more chance of damage.
LTL pricing is usually based on freight class, which reflects density, ease of handling and liability, as well as weight and distance. Light, bulky goods cost more for their weight than dense ones. Accurate weights and dimensions on each shipment avoid re-classification charges from the carrier.
LTL example
Illustrative: an order of 4 pallets goes LTL; an order of 22 pallets books a full truck. Grouping two suppliers' orders into one collection, or ordering slightly more often in full loads, can move freight from LTL to cheaper per-pallet FTL rates.
Why LTL matters for distributors
Freight is a meaningful part of landed cost. Order size and frequency decisions should account for the freight band they land in, not just unit price.
Common LTL mistakes
- Ignoring freight class and density, which drive LTL pricing.
- Comparing supplier quotes without the inbound freight they imply.
Examples on this page use made-up round numbers to show the calculation. They are not benchmarks or results from real businesses.