Freight Guide
Less Than Truckload Shipping Explained
Learn how to quote, book, and track LTL freight without getting burned by carrier inspection fees.
Less than truckload shipping means moving freight that does not require an entire 53-foot trailer. Instead of paying for a full empty box, shippers only pay for the deck space and weight their pallets actually use. The carrier takes those pallets and groups them with shipments from other companies going in the same direction. It is a shared ride for freight.
For a freight broker, this mode is a massive opportunity. Full truckload gets all the glory, but small and mid size shippers constantly need to move two or three pallets at a time. They struggle to get good rates on their own because they do not have the volume to negotiate steep discounts. You step in, provide a better rate through your brokerage network, and handle the tracking.
Booking less than truckload shipping is different than booking a dedicated van. It requires a firm grasp of freight classes, exact dimensions, and terminal networks. Once you understand the physical mechanics and the paperwork, less than truckload shipping becomes a steady and reliable revenue stream for your brokerage.
What less than truckload shipping actually means
To understand less than truckload shipping, you have to understand the hub and spoke model. Full truckload goes directly from point A to point B. LTL freight bounces through a network of terminals.
A local city driver picks up your shipper's pallets. That driver brings the freight back to the origin terminal. Dock workers unload the pallets and group them with other freight heading to the same region. A linehaul truck then moves that consolidated freight to a breakbulk terminal in another state. The freight is unloaded again, sorted, and put onto a final local delivery truck.
This constant loading and unloading means a higher risk of damage. Forklifts touch LTL freight multiple times during transit. However, the cost savings for the shipper are drastic. They split the cost of the fuel, the driver, and the truck with a dozen other companies.
To build a book of business around this mode, you need shippers. Your job is to pick up the phone. You must make 30 to 50 cold calls a day to small and mid size shippers doing $5M to $100M in revenue. Ask them how they handle their partial shipments and LTL volume. Never call Fortune 500 companies. Massive corporations already have direct pricing contracts with carriers like FedEx Freight or Old Dominion. You cannot beat those rates. Stick to the middle market where you can actually solve a problem and save people money.
Step by step, booking your first LTL load
Moving an LTL load requires precision. If your paperwork is wrong, the carrier will penalize you. Here is the exact order of operations to book your first less than truckload shipment.
Step 1: Get exact dimensions and weights You cannot guess. You need the exact length, width, height, and weight of every single pallet. Ask your shipper to measure twice. Ask if the freight overhangs the edges of the pallet. If a shipper tells you it weighs about five hundred pounds, tell them to put it on a scale.
Step 2: Determine the freight class The National Motor Freight Traffic Association regulates freight classes. Every product has a specific NMFC code based on density, handling, stowability, and liability. A pallet of bricks is dense and cheap to insure. A pallet of ping pong balls takes up space but weighs nothing. You must secure the correct NMFC code and freight class for your quote.
Step 3: Run the quote Log into your brokerage TMS or your LTL portal. Enter the zip codes, the freight class, the weight, and the dimensions. The system will spit out rates from multiple carriers. Pay attention to the estimated transit times and choose the best option for your customer.
Step 4: Generate the Bill of Lading This is the most critical step. You must generate the Bill of Lading from your system and send it to the shipper. The shipper must print your BOL and hand it to the driver. If the shipper uses their own handwritten BOL, the carrier will not know the load belongs to your brokerage. They will bill the shipper directly at a massive retail rate.
Step 5: Schedule the pickup Dispatch the local terminal. Give them the pickup window, the piece count, and the weight. Confirm the driver knows exactly where to go.
Step 6: Track through the terminal network LTL tracking is not real time GPS. You track the freight by watching it scan into different terminals. You will see a scan when it leaves the origin, a scan when it hits the breakbulk hub, and a scan when it goes out for delivery.
Freight classes, pricing, and transit times
Less than truckload pricing is highly complex behind the scenes. Carriers base their rates on the freight class, the total weight, the distance, and the current base rates in their specific lanes.
Freight classes range from Class 50 to Class 500. Class 50 is heavy, dense freight that is hard to break. It is the cheapest class to ship. Class 500 is extremely light, fragile freight that takes up a lot of room. It is the most expensive class to ship.
Transit times in the LTL world are strictly estimates. If a carrier says transit is three days, that means three business days. It does not include weekends or holidays. Furthermore, standard LTL transit is never guaranteed. A truck might break down, or a terminal might get backed up. If your shipper absolutely needs guaranteed delivery by a certain day, you must pay an upcharge for a guaranteed service level.
Here is how less than truckload shipping compares to full truckload.
| Feature | Less Than Truckload (LTL) | Full Truckload (FTL) |
|---|---|---|
| Cost | Low. Shippers only pay for space used. | High. Shippers pay for the whole trailer. |
| Transit Time | Slower. Freight moves through terminals. | Faster. Direct from origin to destination. |
| Handling | High. Forklifts touch freight multiple times. | Low. Freight stays on the truck until delivery. |
| Ideal Size | 1 to 6 pallets, under 10,000 pounds. | 10 to 30 pallets, up to 45,000 pounds. |
| Pricing Basis | Freight class, density, and zip codes. | Current spot market rate or contract rate. |
Accessorials also drive up the cost of LTL shipping. Carriers charge extra for anything outside of a standard dock to dock delivery. If the delivery location does not have a loading dock, you must pay a liftgate fee. If the destination is a house, you pay a residential delivery fee. These fees range from $50 to $150 each. You must gather this intel from your shipper before you quote the load.
Common mistakes beginners make
Brokers lose money on less than truckload shipping when they get sloppy with details. The carriers are incredibly strict. Avoid these common traps.
- Guessing weights and dimensions. Every LTL terminal has a forklift with a built in scale and laser dimensioners. They will weigh and measure your freight. If your BOL says 500 pounds but the freight is actually 700 pounds, the carrier will issue a Weight and Inspection correction. They will charge you the difference in freight cost plus an administrative penalty fee.
- Ignoring the NMFC code. You cannot just guess the freight class based on density alone. Many products have specific item codes. If you guess the class and get it wrong, the carrier will reclass the shipment and hit you with a massive post delivery bill. Always look up the exact item.
- Forgetting to ask about delivery appointments. LTL carriers assume businesses are open from 8 AM to 5 PM. If your receiver requires a strict 10 AM delivery appointment, you have to note that on the BOL and usually pay an appointment fee. If the driver shows up and gets turned away, you will pay a redelivery fee.
- Letting the shipper use the wrong paperwork. We repeat this because it is the number one reason new brokers lose LTL loads. Your shipper must use the BOL you provide. If they hand the driver their own paperwork, your brokerage account is completely bypassed.
Less than truckload shipping takes patience to learn. The paperwork is dense, and the rules are strict. But once you lock down the process, you can move immense volume. Keep calling those middle market shippers, get your classes right, and double check your bills of lading. The revenue will follow.
Common questions
What is less than truckload shipping?
Less than truckload shipping is a mode where multiple shippers share space on a single trailer. You only pay for the deck space and weight your pallets use.
How do LTL carriers determine pricing?
Carriers use the total weight, zip codes, and the NMFC freight class to determine the rate. Accessorials like liftgates or residential deliveries add extra fees to the base rate.
Are LTL transit times guaranteed?
Standard LTL transit times are strictly estimates based on business days. If you need freight delivered on an exact day, you must pay for guaranteed service.
What happens if I guess the wrong freight class?
The carrier will inspect the freight, change the class, and bill you for the difference. They will also add a Weight and Inspection penalty fee to your final invoice.
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