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Navigating the Pros and Cons of LTL vs. FTL for Growing Businesses

October 8, 2024
5 min read
3PL
Less Than Truckload
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A split image showing a large truck representing FTL and multiple smaller pallets representing LTL for transportation logistics.

For businesses in growth mode, deciding between Less-than-Truckload (LTL) and Full Truckload (FTL) shipping can be crucial to both cost and customer satisfaction. While LTL and FTL both offer reliable solutions, each method has unique benefits and limitations. By understanding how these shipping types differ, your business can create a logistics strategy that balances cost, speed, and flexibility.

What is LTL Shipping?

LTL shipping consolidates smaller shipments from multiple shippers into a single truckload. This option is ideal for businesses that ship smaller volumes or make frequent, smaller deliveries. Since costs are divided among multiple shipments, LTL is generally cost-effective for businesses shipping less than 10,000 pounds.

Pros of LTL Shipping

  1. Cost Efficiency: LTL allows shippers to pay only for the space they use, making it an affordable option for smaller shipments.
  2. Flexibility: LTL carriers often offer more frequent pickups, providing flexibility for businesses with fluctuating shipping needs.
  3. Eco-Friendly: LTL reduces carbon footprint by consolidating shipments, which lowers the number of trucks on the road.

Cons of LTL Shipping

  1. Longer Transit Times: Since LTL shipments are grouped with other loads and make multiple stops, transit times can be slower than FTL.
  2. Higher Risk of Damage: With multiple loading and unloading points, LTL shipments face a slightly higher risk of damage.
  3. Accessorial Charges: Additional services like liftgate access, inside delivery, or residential delivery may incur extra fees with LTL.

What is FTL Shipping?

FTL, or Full Truckload shipping, dedicates an entire truck to a single shipment. FTL is typically ideal for larger loads or time-sensitive deliveries where the truckload needs to go directly to its destination.

Pros of FTL Shipping

  1. Faster Transit Times: FTL shipments travel directly to their destination without multiple stops, speeding up delivery times.
  2. Lower Risk of Damage: Since FTL shipments remain on the same truck from start to finish, there is less handling, reducing the risk of damage.
  3. Economies of Scale: For larger shipments, FTL can be more economical per unit shipped than LTL, especially when rates are negotiated for volume.

Cons of FTL Shipping

  1. Higher Costs for Small Loads: Because you’re paying for the entire truck, FTL can be costly for smaller shipments.
  2. Less Flexibility: FTL shipments may require longer lead times and aren’t as adaptable to last-minute changes.

Choosing the Right Option for Your Business

Deciding between LTL and FTL depends on your business needs, shipment size, budget, and delivery expectations. Growing businesses often find a balance between the two methods to be the most effective approach. By assessing your shipment volume, customer locations, and speed requirements, you can choose the best fit—or even leverage both options as your business scales.

Amware’s LTL and FTL Solutions

Amware’s LTL and FTL shipping services provide flexible, reliable, and cost-effective solutions tailored to meet the unique requirements of industries like automotive, manufacturing, chemicals, and industrial goods. With Amware’s cloud-based Transportation Management System, Amrate, companies can save up to 30% annually on LTL shipping by comparing carrier rates and finding the best options for their specific needs. Amrate easily integrates with existing WMS and ERP systems, giving you complete control and visibility over your shipping operations.

Contact us today to explore how our LTL and FTL solutions can streamline your supply chain, reduce costs, and enhance delivery reliability. Click below to request a free trial of Amrate, or upload your current rates to see how they stack up.

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