The U.S. transportation system is among the largest in the world and ships over 54 million tons of goods every day. They’re said to be worth $48 billion and equal to 63 tons of freight per year per person. However, with a growing population and providers, the figure is also expected to grow, according to SCMEDU.
If you like to move goods or want to know more about the shipping industry then you have landed on the right page. We have covered everything about shipping in this article as we’ll take a deeper look at LTL definition and other aspects of it.
If you wonder what LTL stands for then worry not. It’s shortened for less than load, and also known as less than truckload shipping, is the name given to the transportation of small freight.
There are some alternatives to this option including full truckload carriers and parcel carriers. Full truckload carriers make use of a semi-trailer to move freight from one place to another.
The trailers, which are between 7.92 and 16.15m are loaded with the goods. However, they need a very big amount of freight in order to make it economical and feasible to use them.
On the other hand, parcel carriers are typically used when one has to move small packages and it is possible to break the freight into smaller units, each weighing a maximum of 150 pounds.
Let’s know more about what LTL means and when it can be a good option to move goods:
What does LTL Freight Mean in Shipping?
Let’s talk about the role of LTL in shipping. Firstly, you need to know what LTL stands for in shipping. It’s shortened for less than truckload freight shipping.
It’s a shipping method used to transport small freight. It may also be used when the goods you need to move do not take up the entire space.
LTL is suitable when you wish to move freight that weighs more than 150 pounds but less than 15,000 pounds.
When you opt for LTL, you only pay for space your freight occupies in the trailer. The left space is given to other buyers who pay for it. This way the whole trailer is filled and the freight is also made economical.
What Does LTL Freight Shipping Mean in the Trucking Industry?
If you wonder what LTL stands for in trucking then worry not. It’s not very complicated. Sometimes the goods you wish to move do not cover the whole trailer and there is empty space.
In such a scenario, it may not be wise to pay for the whole trailer, hence it’s better to opt for LTL freight. Just like LTL in shipping, LTL in trucking also allows you to only pay for space your freight covers as the remaining space is taken by others.
LTL and Its Many Benefits
LTL is a popular shipping technique due to its many advantages. It is not only beneficial for the shipping company but for the sender as well. Let’s have a look at the pros of LTL in detail:
Benefits to the Shipping Company
The shipping company gets to earn more profit and cater to more buyers. There is no empty space available on the ship and every inch is covered, hence they get the maximum possible profit on every journey.
Benefits to the Buyer
LTL shipping offers buyers a lot of benefits. These include:
- Reduced costs:
It allows buyers to save money. You’d have to buy all the available space without LTL as an option.
- Less emission:
LTL shipping is not only good financially but it provides environmental benefits as well. When one ship can carry more items, fewer ships are required, hence less emission and pollution.
- Increase security:
Companies provide exceptional security to your goods. They ensure the items reach their final destination in a good state.
- Additional service:
Many shipping corporations may offer you additional services when you opt for LTL shipping. For example, you may be able to enjoy non-commercial shipping, liftgates, and other such services when you use LTL shipping.
- Easy tracking:
LTL shipping allows you to track your shipment without any trouble. This way you know where’s your shipment at any given time and when it would reach the final destination.
“LTE shipping is beneficial for all the parties involved. This is why it has become such a popular method of shifting goods for not just big companies but for small sellers as well,” said one of the representatives of Fbabee, a China-based Amazon FBA Forwarder and Prep Center.