Less Than Truckload - Revision history

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Less-Than-Truckload (LTL) Shipping

The logistics mode where multiple smaller shipments from different customers are consolidated onto a single trailer.

Type: Consolidated Freight
2026-02-17T18:49:04Z

Created page with "{{note|This article is part of the Customs Glossary Guide|info}} <div class="bc-wrap"> <div class="bc-article-hero"> <h1>Less-Than-Truckload (LTL) Shipping</h1> <p>The logistics mode where multiple smaller shipments from different customers are consolidated onto a single trailer.</p> <div class="bc-article-meta"> <span class="bc-article-pill"><i class="fas fa-boxes"></i> Type: Consolidated Freight</span> <span class="bc-article-pill"><i class=..."

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{{note|This article is part of the [[Customs_Glossary_Guide|Customs Glossary Guide]]|info}}
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<h1>Less-Than-Truckload (LTL) Shipping</h1>
<p>The logistics mode where multiple smaller shipments from different customers are consolidated onto a single trailer.</p>
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<span class="bc-article-pill"><i class="fas fa-boxes"></i> Type: Consolidated Freight</span>
<span class="bc-article-pill"><i class="fas fa-network-wired"></i> Model: Hub & Spoke</span>
<span class="bc-article-pill"><i class="fas fa-weight-hanging"></i> Range: 150 - 15,000 lbs</span>
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<h2 style="margin-top: 0;">What is LTL?</h2>

<p><strong>Less-Than-Truckload (LTL)</strong> is a shipping method used for freight that is too large for a parcel carrier (like FedEx/UPS) but does not require the entire space of a standard 53-foot trailer.</p>

<p>Unlike <strong>Full Truckload (FTL)</strong>, where a truck moves directly from Point A to Point B with one customer's goods, LTL carriers operate on a <strong>Hub-and-Spoke</strong> model. A truck picks up multiple shipments, brings them to a local terminal (Hub), where they are unloaded, sorted, and reloaded onto linehaul trucks destined for other terminals.</p>

<h3>The "Space Sharing" Economy</h3>
<p>LTL is essentially "ride-sharing" for freight. Shippers only pay for the portion of the trailer their cargo occupies (based on weight and density), while the carrier fills the rest of the truck with other customers' goods to maximize revenue.</p>
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">LTL vs. FTL: The Key Differences</h2>

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<p>Choosing between LTL and FTL depends on cost, speed, and risk tolerance.</p>

<table class="wikitable" style="width: 100%;">
<tr>
<th style="width: 20%;">Feature</th>
<th>LTL (Less-Than-Truckload)</th>
<th>FTL (Full Truckload)</th>
</tr>
<tr>
<td><strong>Cost</strong></td>
<td><strong>Lower.</strong> You share the cost of fuel and labor with other shippers.</td>
<td><strong>Higher.</strong> You pay for the exclusive use of the entire trailer, regardless of how full it is.</td>
</tr>
<tr>
<td><strong>Transit Time</strong></td>
<td><strong>Slower.</strong> Stops at multiple terminals for sorting/transferring (cross-docking).</td>
<td><strong>Faster.</strong> Direct route from pickup to delivery.</td>
</tr>
<tr>
<td><strong>Risk</strong></td>
<td><strong>Higher.</strong> Freight is handled (loaded/unloaded) multiple times, increasing the risk of damage.</td>
<td><strong>Lower.</strong> Freight typically stays on the same trailer from start to finish.</td>
</tr>
<tr>
<td><strong>Ideal For...</strong></td>
<td>1 to 6 pallets (approx. 150 - 10,000 lbs).</td>
<td>10+ pallets, high-value goods, or urgent deadlines.</td>
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</table>
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Cross-Border LTL Challenges</h2>

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<p>For BorderConnect users, LTL adds a layer of complexity to customs clearance. A single trailer crossing the border may contain 30 different shipments, each requiring its own unique <strong>PAPS</strong> (US) or <strong>PARS</strong> (Canada) number.</p>

<h3>The "One Hold Holds All" Rule</h3>
<p>In a consolidated environment, if <strong>one</strong> shipment on the truck has bad paperwork or is flagged for inspection, CBP or CBSA may hold the <strong>entire trailer</strong>.</p>
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<strong>The Bonded Solution:</strong><br>
To mitigate this, successful cross-border LTL carriers are often <strong>Bonded Carriers</strong>. This allows them to move a "held" shipment in-bond to a sufferance warehouse for inspection, while delivering the remaining 29 cleared shipments to their destinations.
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<h3>Freight Class (NMFC)</h3>
<p>LTL pricing is heavily dependent on the <strong>National Motor Freight Classification (NMFC)</strong>. Goods are assigned a "Class" (from 50 to 500) based on density, stowability, handling, and liability. A pallet of bricks (dense/easy to handle) is cheaper to ship than a pallet of ping pong balls (light/takes up space).</p>
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">LTL Management in BorderConnect</h2>

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<p>BorderConnect is designed to streamline the data entry for high-volume LTL manifests.</p>

<h3>1. Handling Multiple Shipments</h3>
<p>You can attach an unlimited number of shipments to a single trip.
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<li><strong>ACE:</strong> Create one Trip (eManifest) and add multiple "Shipments" (PAPS, Section 321, etc.).</li>
<li><strong>ACI:</strong> Create one Conveyance and link multiple Cargo Control Numbers (PARS).</li>
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<h3>2. Consolidators & Freight Forwarders</h3>
<p>If you are hauling freight for a Master Loader or Consolidator, you may be moving a single shipment that contains many house bills.
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<li><strong>Scenario:</strong> You pick up one sealed trailer from a forwarder.</li>
<li><strong>Action:</strong> You file <strong>one</strong> manifest using the forwarder's Master Bill number (if they are the consolidator) or the specific cargo control number provided.</li>
</ul>
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<h3>3. Section 321 Consolidation</h3>
<p>LTL trucks often carry e-commerce goods. BorderConnect allows you to mix <strong>Section 321</strong> (Duty-Free) shipments on the same manifest as standard <strong>PAPS</strong> shipments, ensuring every pallet is declared correctly.</p>
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[[Category:Definitions]]
[[Category:Logistics Modes]]