LTL vs. FTL is an age-long conversation, and choosing the right trucking strategy can be complex.
The reason is primarily because the chosen trucking strategy can impact the logistics and supply chain operations' cost, lead time, and overall efficiency. That is why many businesses, organizations, and supply chains are very particular about the decision-making process. At their core, full truckload and less-than-truckload trucking options are very different and will cater to different needs in the supply chain. Deciding how and which to choose will depend largely on the current needs of the supply chain.
The right option helps the supply chain better navigate the freight market’s uncertainty, protect it from the threat of disruptions, and streamline operations. On the other hand, the wrong option could play a significant role in derailing the entire operation.
This article explores full truckload and less-than-truckload trucking strategies and how any business or its supply chain can decide between them.
Comparing Full Truckload (FTL) and Less-Than-Truckload (LTL)
The full truckload and less-than-truckload trucking strategies are two of the most common shipping options, and they play different roles in the supply chain (small or big).
Understanding them will significantly inform how shippers manage their trucking options.
Understanding Less-Than-Truckload Freight
Simply put, less-than-truckload trucking transports shipments that do not fill an entire truck. These shipments are consolidated from multiple shippers before the transportation process begins, and all it will cost the shipper is the container or truck space it requires for its shipment.
Less-than-truckload freight is popular among shippers who move smaller shipments, usually to multiple destinations. Less-than-truckload freight allows shippers to serve different customers, save costs, and enhance the flexibility of their supply chain operations.
Understanding Full Truckload Freight
Full truckload trucking is a shipping option in which shippers have access to the entire truckload capacity. Although this is usually preserved for larger shipments, it can often be leveraged for unique shipments such as reefer (refrigerated transportation) and fragile or delicate items such as petroleum products and chemicals.
The less-than-truckload option might be cheaper, but the full truckload freight is ultimately faster and enhances the security of the shipment. It also reduces the handling process and lowers the risk of shipment damage.
Key Differences Between LTL vs. FTL
As mentioned, the two shipping options are quite different at their core and cater to different supply chain needs. Understanding the key differences will allow for the streamlining of shipping operations.
Shipment Size and Weight
Weight and size are significant when deciding between LTL vs. FTL. Smaller shipments of less than 5,000 pounds will be great for LTL trucking. On the other hand, shippers needing to transport cargo weighing 5,000 to 10,000 pounds or more will be better off using FTL trucking. If the cargo exceeds a third or, in some cases, half of the container, then it is better off using the FTL freight solution. This way, the shipments will be better protected from the risk of damage.
Delivery Timelines
LTL trucking entails multiple stops and handling processes, which is way slower than the FTL trucking option. Deciding which option to leverage will depend on the delivery deadlines and the supply chain's ability to manage the potential delays. Shipments in the reefer and food supply chains, which are much more sensitive, will fare better with FTL.
Freight Sensitivity
The more sensitive a freight or shipment is, the better off it will be with FTL trucking. FTL ensures that the goods are not exposed to multiple parties, securing them from damage or theft. Goods like petroleum products, chemicals, and sensitive equipment must be shipped with FTL. LTL will be a much better option for less sensitive items like fashion.
Benefits of Partnering with a 3PL for FTL and LTL Trucking
Partnering with a third-party logistics partner ensures the supply chain can leverage the logistics business's experience, expertise, and resources. The supply chain can scale operations as needed without additional investments, and it can lean on the third party to make informed decisions, especially where the rates (spot and contract) are concerned.
Continental Logistics is a third-party logistics platform that focuses on optimizing businesses' logistics operations and supply chains. We work behind the scenes handling your transportation needs so you can concentrate on seamlessly running your business. Whether you require container drayage, FTL, LTL, or another mode of transportation to move your product, we’ve got you covered. Talk to an expert at Continental Logistics today.
