You’re shipping multiple pallets to a customer and facing competing LTL and FTL quotes. Which saves money? The answer isn’t obvious—and choosing wrong can mean you spend more on shipping than you need to.
Most ecommerce businesses hit this crossroads at moderate shipment volumes, where LTL and FTL pricing converge. Below that threshold, LTL wins on cost. Above it, FTL often provides better value through faster delivery and reduced damage risk. But volume isn’t the only factor.
This guide shows you exactly when to choose each method, how to calculate true breakeven points, and what hidden costs most businesses miss. You’ll get the decision framework successful companies use to optimize freight spending while maintaining customer satisfaction.
What you’ll learn
The critical decision point where costs flip between methods
Hidden cost factors that change the math
Exact calculations for your breakeven analysis
How 3PL partnerships reduce costs for both methods
TL;DR:
Key takeaways
LTL works best for smaller, lighter shipments
FTL becomes cost-effective for large or time-sensitive freight
Breakeven varies by freight class and route density
3PLs can provide significant cost reductions through volume discounts
What is LTL (less-than-truckload) shipping?
Less-than-truckload shipping allows businesses to share truck space with other customers’ freight, making it cost-effective for smaller shipments that don’t require an entire trailer.
PRO TIP: When evaluating carriers, always ask for references from businesses similar to yours in size and complexity.
How consolidation works
The LTL system operates through a network of terminal hubs where freight from multiple shippers gets consolidated onto trucks heading to similar destinations. “LTL weight guidelines can vary from as little as 100 to as much as 10,000 pounds”¹ depending on the carrier and specific requirements.
During this process, your LTL freight moves through several handling points, which explains why this method typically takes longer than direct delivery methods. Each terminal transfer adds time but reduces cost by maximizing trailer capacity across multiple customers.
Typical shipment characteristics
“LTL works best for partial pallet loads, typically from 1 to 6 pallets, “² according to industry standards. An LTL shipment usually ranges from 150 to 10,000 pounds, with most businesses finding it economical for shipments under $415 per shipment³—the national average cost.
The freight classification system plays a crucial role in pricing. The National Motor Freight Classification (NMFC) uses 18 freight classes ranging from 50 to 500⁴, with lower numbers indicating denser, easier-to-handle freight that costs less to ship.
NOTE: Starting in 2025, the NMFC will transition to density-based classifications⁵, which may affect your current freight class assignments and pricing.
Most carriers require detailed documentation for each LTL shipment, including weight, dimensions, freight class, and special handling requirements. This paperwork ensures proper handling throughout the consolidation process and helps prevent delays at terminal facilities.
Working with experienced third-party logistics services can help manage the complexity of documentation and terminal coordination, especially for businesses new to freight transportation.
What is FTL (full truckload) shipping?
Full truckload shipping provides exclusive use of an entire truck for your shipment, delivering directly from origin to destination without intermediate stops or freight transfers.
Dedicated truck benefits
With FTL service, your freight travels point-to-point on a dedicated vehicle, eliminating the multiple handling points common in LTL networks. This full truckload approach reduces transit times and minimizes damage risk since your freight never gets unloaded until it reaches the final destination.
The dedicated nature of FTL service means you control the entire truck capacity and schedule. Unlike LTL, where your freight waits for consolidation with other shipments, FTL moves on your timeline once the truck is loaded and ready for dispatch.
Capacity specifications
“FTL shipments can accommodate between 24 and 34 standard pallets, with a maximum gross weight limit of around 80,000 pounds”⁶ depending on trailer type and configuration. Standard dry van trailers measure 53 feet long, 8.5 feet wide, and 9 feet high, providing approximately 3,400 cubic feet of cargo space.
The FTL process allows for maximum weight utilization since you’re not sharing space with other customers. This makes FTL ideal when you need to move large quantities efficiently, even if you don’t completely fill the entire truck.
When FTL makes sense
“Truckload shipping is used when you have large cargo — often 24 to 26 pallets or 20,000+ lbs”⁷ according to logistics specialists. Beyond volume considerations, FTL becomes attractive when freight value, security requirements, or delivery urgency justify the dedicated service premium.
High-value or fragile products often benefit from FTL service since the reduced handling minimizes damage risk. Additionally, time-sensitive shipments avoid the delays inherent in LTL’s hub-and-spoke consolidation system when using dedicated carrier service.
For businesses transporting to the same destination regularly, FTL can provide cost advantages through route optimization and large item fulfillment efficiencies that LTL networks cannot match.
TL;DR:
LTL vs FTL: Key differences
LTL is cost-effective for shipments with 1-6 pallets or less than 10,000 pounds.
FTL becomes more cost-effective when shipping over 6-12 pallets or more than 10,000 pounds.
LTL shipments take 2-3 days longer on average compared to FTL.
LTL involves more handling, increasing damage risk by 2.5x compared to FTL.
LTL vs FTL: key differences comparison
Understanding the fundamental differences between these freight methods helps you make informed decisions that impact both costs and customer satisfaction.
Cost breakeven analysis
NOTE: “When a shipment exceeds approximately 6–12 pallets or more than 10,000 pounds, the per-unit cost can shift, making it more cost-effective to pay a flat rate for a dedicated full truckload” rather than paying for shared space in an LTL network.
The difference between LTL and FTL pricing becomes most apparent at these volume thresholds. While LTL rates increase linearly with weight and space, FTL pricing remains relatively flat once you commit to the full truck, making LTL and FTL cost comparison essential for shipments in the 6-12 pallet range.
Several factors beyond basic weight and pallet count influence the economic crossover point between these freight methods, including freight class, distance, lane density, and fuel costs.
Transit time differences
NOTE: “LTL shipments can take up to 2-3 days longer on average compared to FTL shipments” due to the consolidation and deconsolidation processes at terminal facilities. This FTL and LTL timing difference can significantly impact customer satisfaction and inventory planning.
FTL service typically provides next-day or two-day delivery for most regional shipments, while LTL might require 3-5 days for the same distance. The additional transit time in LTL results from freight handling at multiple terminals rather than direct point-to-point movement.
For time-sensitive freight, this transit time difference often justifies FTL costs even when the shipment volume wouldn’t normally warrant dedicated truckload service.
Risk and handling factors
NOTE: “LTL involves more handling, raising the risk of loss or damage by 2.5x compared to FTL”, with damage incidents costing an average of 34 cents per dollar of freight value. This handling difference creates both risk and cost implications for shippers.
The multiple touchpoints in LTL networks—loading, terminal transfers, and final delivery—create more opportunities for damage, theft, or loss. FTL’s direct movement eliminates most of these risk factors by keeping freight secure on one truck throughout transit.
When evaluating LTL vs FTL options, factor these risk costs into your total cost analysis rather than focusing solely on transportation rates.
Understanding logistics pricing factors helps businesses account for these hidden costs when making freight decisions.
When to choose LTL shipping
LTL provides the most cost-effective solution for businesses with moderate freight volumes that don’t justify full truck capacity.
Ideal shipment parameters
LTL works best for shipments in the 1-6 pallet range weighing less than 10,000 pounds. This LTL shipment size allows you to share transportation costs with other shippers while maintaining reasonable transit times for most business needs.
The freight classification system favors dense, regularly shaped items that are easy to handle and stack. Items with lower freight classes (50-100) typically see the greatest cost advantages in LTL networks compared to other methods.
Budget-conscious scenarios
When costs significantly impact profit margins, LTL offers substantial savings over FTL for smaller volumes. The shared cost structure makes freight transportation accessible for businesses that couldn’t otherwise afford dedicated truck service.
LTL carriers negotiate freight rates based on lane density and volume, meaning popular routes between major markets often provide better pricing than FTL alternatives for smaller shipments.
Flexible timeline situations
Businesses with non-urgent delivery requirements can maximize savings by using LTL for regular inventory replenishment and distribution. The 3-5 day typical transit time works well for planned inventory movements rather than emergency shipments.
When you use LTL for predictable, routine shipments, the longer transit times become manageable through better planning and inventory management. Regional distribution networks benefit from LTL’s extensive coverage and competitive pricing for moderate volumes.
Partnering with ecommerce fulfillment strategies experts can help optimize your LTL schedule to balance costs with customer expectations.
When to choose FTL shipping
FTL justifies its premium cost when volume, urgency, or special handling requirements make dedicated truck service the optimal choice.
Volume requirements
Consider FTL when your shipment reaches 10+ pallets or exceeds 10,000 pounds, as the cost per unit often becomes competitive with LTL rates at these volumes. Full truckload pricing provides predictable costs regardless of whether you utilize 75% or 100% of the truck capacity.
The FTL advantage becomes more pronounced as shipment density increases, since you’re paying for dedicated space rather than competing for shared capacity during peak periods.
Time-sensitive needs
When delivery timing directly impacts customer satisfaction or business operations, FTL eliminates the delays inherent in LTL consolidation processes. Direct point-to-point movement typically reduces transit time by 1-3 days compared to LTL alternatives.
The FTL shipment process provides greater schedule control since you’re not dependent on other shippers’ freight being ready for consolidation. This reliability makes FTL attractive for inventory replenishment, seasonal distribution, and customer commitments.
Security and fragile goods
High-value or fragile products benefit from FTL service through reduced handling and enhanced security. The dedicated truck approach eliminates multiple loading/unloading cycles that increase damage risk in LTL networks.
Specialized equipment, temperature-controlled products, and freight requiring custom handling often require FTL service since LTL networks may lack the specialized capabilities or security protocols necessary for safe transport.
For businesses requiring omnichannel distribution of high-value products, FTL provides the control and security needed to maintain product integrity throughout the supply chain.
Cost analysis: LTL vs FTL break-even points
Understanding the financial crossover points between LTL and FTL helps optimize your freight spending and improve profit margins.
ALERT: Never sign a long-term contract without performance guarantees and clearly defined cost structures for both LTL and FTL services.
Pricing model comparison
“The national average of trucking rates ranges between $2.30 and $3.19 per mile”¹⁰ for FTL service, while LTL pricing depends on weight, class, and distance through complex tariff structures. These freight rate differences create distinct economic advantages at different shipment volumes.
| Shipping method | Pricing model | Best for | Rate structure |
|---|---|---|---|
| LTL | Weight/class based | 1-6 pallets | Per hundredweight |
| FTL | Per mile flat rate | 10+ pallets | $2.30-$3.19/mile |
FTL pricing typically includes fuel surcharges, which can add 15-25% to base rates, making total cost prediction more complex than LTL’s all-inclusive pricing model. Understanding these FTL cost components helps in accurate comparison calculations.
LTL rates vary significantly by freight class and lane density, with popular routes offering better pricing than remote destinations. Dense freight (class 50-85) often provides the best cost comparison scenarios.
Hidden cost factors
Beyond base transportation rates, consider accessorial charges, detention fees, and potential damage costs when comparing freight methods. LTL shipments typically include terminal handling in base rates, while FTL may charge separately for services like inside delivery or appointment scheduling.
Fuel surcharges affect both methods but apply differently—LTL includes surcharges in published rates, while FTL often quotes them separately. This pricing structure difference can impact budget planning and cost comparison accuracy.
Carrier relationships become crucial for managing these additional costs, as experienced freight partners can often negotiate better terms and minimize unexpected charges.
Break-even calculation method
Calculate total delivered cost, including base rates, fuel surcharges, and accessorials for accurate comparison. The breakeven point typically occurs when LTL rates approach $2.50-$3.00 per mile equivalent, making FTL’s flat per-mile rate competitive.
Consider LTL rate inflation projections of 1-3% for 2025¹¹ when making annual commitments or contract negotiations. This modest increase reflects capacity constraints and fuel cost pressures affecting the trucking industry.
Working with experienced choosing logistics partners can help navigate these complex cost calculations and identify optimal freight methods for your specific patterns.
Working with 3PL providers for LTL and FTL
Third-party logistics providers optimize both methods through expertise, volume discounts, and advanced technology systems.
Volume discount advantages
3PLs leverage consolidated buying power across multiple clients to negotiate better carrier rates than individual shippers can achieve. This freight volume aggregation often provides 10-30% savings on both LTL and FTL services compared to direct carrier relationships.
Established 3PL carrier relationships include favorable terms for accessorial charges, detention fees, and claims processing that individual shippers struggle to negotiate independently.
Technology and expertise benefits
Modern 3PLs provide sophisticated logistics software for shipment tracking, cost analysis, and mode optimization. These technology capabilities help determine the most cost-effective method for each shipment automatically.
A quality 3PL service includes freight class determination, documentation preparation, and claims management that reduces complexity for business owners focused on core operations.
Advanced forecasting and inventory planning help optimize schedules to maximize FTL utilization while minimizing LTL emergency shipments that inflate costs.
Method selection guidance
Experienced 3PLs analyze patterns to recommend optimal LTL and FTL strategies based on your business cycles, customer requirements, and cost objectives. This analysis often reveals opportunities for mode conversion that significantly reduce transportation spending.
The 3PL market continues growing, projected to reach $117.75 billion in 2025¹², driven by businesses seeking logistics expertise and cost optimization rather than managing freight internally.
Professional third-party logistics partners provide ongoing optimization recommendations as your business grows and patterns evolve, ensuring continued cost effectiveness.
Making the right choice for your business
Success in freight transportation requires matching your method selection to business requirements, customer expectations, and financial objectives.
PRO TIP: Start with a 90-day shipping analysis to identify patterns and optimization opportunities before making permanent changes to your freight strategy.
Decision checklist
Review key volume thresholds—shipments consistently reaching 6-12 pallets suggest evaluating FTL alternatives to LTL service. Consider transit time requirements, budget constraints, and handling sensitivity when comparing LTL and FTL options.
Evaluate your current method performance against:
Customer satisfaction metrics
Damage rates
Total delivered costs
Transit time consistency
Implementation steps
Test alternative methods on non-critical shipments to validate cost and service assumptions before making permanent changes. Partner with logistics professionals who understand both LTL and FTL markets to ensure optimal freight decisions as your business scales and requirements evolve.
Ready to optimize your freight strategy? Contact our fulfillment experts to analyze your current patterns and identify cost-saving opportunities through better LTL and FTL utilization.
Citations
- NMFTA. “LTL Freight Packaging Guidelines.” NMFTA, 2024. https://nmfta.org/ltl-freight-packaging-guidelines/
- Invensis. “FTL vs LTL Freight Shipping.” Invensis, 2025. https://www.invensis.net/blog/ltl-vs-ftl-freight-shipping
- SPI 3PL. “FTL vs LTL Shipping Guide.” SPI 3PL, 2025. https://spi3pl.com/ftl-vs-ltl-shipping-a-guide-to-maximize-freight-efficiency/
- Zipline Logistics. “LTL Freight Classes FAQ.” Zipline Logistics, 2024. https://ziplinelogistics.com/blog/ltl-freight-class-faq/
- SC Solutions Inc. “Freight Class by Density for LTL Shipments in 2025.” SC Solutions Inc, 2025. https://scsolutionsinc.com/freight-class-and-nmfc-codes-how-to-calculate-freight-class-by-density-for-ltl-shipments-in-2025/
- IncoDocs. “What is Full Truckload?” IncoDocs, 2024. https://incodocs.com/blog/full-truckload-ftl/
- SPI 3PL. “FTL vs LTL Shipping.” SPI 3PL, 2025. https://spi3pl.com/ftl-vs-ltl-shipping-a-guide-to-maximize-freight-efficiency/
- Invensis. “FTL vs LTL Freight Shipping: How to Choose the Right…” Invensis, 2025. https://www.invensis.net/blog/ltl-vs-ftl-freight-shipping
- SPI 3PL. “FTL vs LTL Shipping Efficiency.” SPI 3PL, 2025. https://spi3pl.com/ftl-vs-ltl-shipping-a-guide-to-maximize-freight-efficiency/
- Lone Star Logistics. “LTL vs. FTL Shipments Explained.” Lone Star Logistics, 2024. https://lone-starlogistics.com/ltl-vs-ftl-shipments-explained/
- Argon & Co. “2025 Less-than-Truckload Rate Outlook.” Argon & Co, 2025. https://www.argonandco.com/us/news-insights/articles/2025-less-than-truckload-ltl-rate-outlook-change-is-in-the-air/
- 360iResearch. “LTL Logistic Market Size 2025-2030.” 360iResearch, 2025. https://www.360iresearch.com/library/intelligence/ltl-logistic
