Topic Transport ORTEC

Less than Truck Load (LTL)

What is Less than Truck Load?

Less than Truck Load (LTL) is a shipment that is too big for express carriers but not a complete Truck Load.

Why optimize Less than Truck Load (LTL) to Full Truck Loads (FTL)?

The main advantage to using an LTL carrier is that a shipment may be transported for a fraction of the cost of hiring an entire truck for an exclusive shipment. With an LTL shipment, the shipper only pays for the amount of space used on the truck. For example, if the products only take up a quarter of the truck, the shipper needs to pay only a quarter of the cost for the truck. The rest of the truck is loaded with shipments from other companies who also want to save money on their smaller shipments. Transit times are however longer for LTL loads compared to FTL loads. While FTL can go directly from point A to point B, LTL usually needs to be picked up, transported to a hub, loaded in another truck (including waiting time for other loads to be added), do FTL line haul transport to a hub near point B, be unloaded in another truck and then delivered to point B.

How to optimize Less than Truck Load (LTL) to Full Truck Loads (FTL)?
Using an LTL carrier is very similar to using an express parcel carrier. Both LTL carriers and express parcel carriers use a network of hubs and terminals to deliver freight. Delivery times by both types of service providers are not directly dependent upon the distance between origin and destination, but depend more on the distance to the hubs, and how many times the freight is loaded and unloaded during transport.

What are the results of optimizing Less than Truck Load (LTL) to Full Truck Loads (FTL)?

Optimizing Truck Loads with FTLs results in reducing:

  • Transportation costs
  • Number of deliveries
  • Risk of damage (as a result of shipping less air in a trailer)
  • Empty mileage
  • Impact on the environment through less CO2 emissions
In addition, FTLs lead to better truck utilization which increases the amount of orders per resource.

Why contact ORTEC to optimize Less than Truck Load (LTL) to Full Truck Loads (FTL)?

ORTEC has strong experience and footprint in delivering advanced optimization solutions for LTL orders and industry. This includes cross-docking and grouping orders to routes and to assign routes to resources, taking numerous business requirements and restrictions into account. Various cases are available, showing over 5% cost savings.