What is LTL freight shipping?
LTL (Less-Than-Truckload) freight shipping is a method where multiple shippers share space on a single truck. Each shipper pays only for the portion of the trailer their freight occupies, typically ranging from 1 to 10 pallets or 150 to 15,000 pounds. LTL shipments move through a hub-and-spoke network of terminals and cross-docks, where freight is consolidated and sorted before final delivery.
What is FTL freight shipping?
FTL (Full Truckload) freight shipping dedicates an entire truck to a single shipper's freight. The shipment travels directly from origin to destination without stops at intermediate terminals. FTL is ideal for large shipments that fill most or all of a trailer, typically 10 or more pallets or over 15,000 pounds. Because freight is not handled multiple times, FTL shipments experience significantly fewer damage incidents and faster transit times.
Key differences between LTL and FTL freight shipping
Cost: LTL is more economical for shipments under 10 pallets because you share truck space with other shippers. FTL becomes more cost-effective when your freight fills more than half a trailer, as per-unit costs drop significantly. For enterprise shippers moving high volumes across multiple lanes, a blended LTL and FTL strategy can reduce total freight spend by 10 to 30 percent.
Transit time: FTL shipments are faster because they travel directly from pickup to delivery without terminal stops. A typical FTL shipment covers 500 miles in 1 to 2 days. Traditional LTL shipments take 3 to 7 business days for the same distance due to terminal transfers. However, modern LTL platforms like Warp offer day-definite transit with fewer touchpoints, closing this gap significantly.
Damage rates: Traditional LTL freight is handled 6 to 12 times between pickup and delivery as it moves through multiple terminals. Each touchpoint increases damage risk. Industry average LTL damage claim rates run 2 to 5 percent. FTL damage rates are significantly lower at under 1 percent because freight is loaded once and unloaded once. Warp's rebuilt LTL network reduces touchpoints to 2 to 3 per shipment, achieving 41 percent fewer damage claims than traditional LTL carriers.
Visibility and tracking: FTL shipments are easier to track because there is one truck on one route. Traditional LTL tracking is fragmented across terminals and carriers. Modern LTL platforms provide real-time GPS visibility across all legs, giving shippers the same level of tracking they expect from FTL. Warp provides real-time visibility across its entire network of 50+ cross-dock facilities and 1,500+ active lanes.
When should enterprise shippers choose LTL?
LTL is the right choice when your shipment is between 1 and 10 pallets and does not require the full capacity of a 53-foot trailer. Enterprise shippers with multi-store retail replenishment, e-commerce fulfillment, or regular distribution to multiple locations benefit most from LTL. It is also ideal for inbound vendor consolidation, where multiple vendor shipments heading to the same distribution center can be grouped together. Shippers using LTL for store replenishment report 26 percent fewer stockouts and 18 percent less store labor when using optimized LTL delivery schedules.
When should enterprise shippers choose FTL?
FTL makes sense when you are shipping 10 or more pallets, when freight is time-sensitive, or when you are moving high-value or fragile goods that cannot risk multiple handling events. FTL is also the better option for dedicated lanes with consistent high volume, where you can negotiate contract rates. Large-scale distribution center transfers, seasonal inventory moves, and bulk raw material shipments are classic FTL use cases.
The hybrid approach: combining LTL and FTL for maximum efficiency
Most enterprise shippers do not use LTL or FTL exclusively. The most effective freight strategies combine both modes based on lane volume, shipment size, and delivery requirements. Pool distribution is one example of a hybrid approach, where FTL linehauls move consolidated freight to regional cross-docks, then LTL deliveries distribute to individual stores. This model achieves 21 percent lower per-store delivery costs compared to traditional direct-ship methods. Zone skipping is another hybrid strategy where multiple small parcel or LTL shipments are consolidated into FTL linehauls that bypass expensive carrier zones, then deconsolidated near the final destination for last-mile delivery. This approach can deliver shipments 2 days faster while reducing costs.
Key freight metrics every enterprise shipper should track
On-time delivery rate measures the percentage of shipments that arrive within the promised delivery window. Industry benchmarks for LTL carriers average 85 to 92 percent. Top-performing networks achieve 98 percent or higher. Warp delivers 98.7 percent on-time to stores across its network. Damage claim rate tracks the percentage of shipments with damage claims filed. Traditional LTL averages 2 to 5 percent. Warp achieves 41 percent fewer claims than this industry average through fewer touchpoints and cross-dock precision. Cost per unit shipped measures total freight spend divided by units delivered. Optimized LTL networks reduce this metric by 10 to 30 percent through consolidation, lane optimization, and predictable pricing without hidden accessorial fees. Service failure rate captures missed pickups, misroutes, and delivery exceptions. Traditional carriers average 5 to 10 percent service failures. Warp achieves 30 to 50 percent fewer service failures through AI-powered route optimization and dedicated carrier relationships.
Bottom line: LTL vs FTL decision framework
Choose LTL when shipping 1 to 10 pallets, when you have multiple delivery points from one origin, when budget efficiency matters more than speed, or when you need flexible scheduling for store replenishment. Choose FTL when shipping 10 or more pallets, when transit speed is critical, when freight is high-value or fragile, or when you have consistent high-volume lanes. Choose a hybrid LTL and FTL strategy when you operate a multi-channel distribution network, when you need pool distribution to retail stores, when you want to optimize zone skipping for parcel shipments, or when you want to consolidate inbound vendor freight.
Written by Chris Reeves, VP of Pricing and Network at Warp, with 20+ years of experience in logistics, pricing, network design, and carrier development. Chris helped build Forward Air into a public LTL leader before joining Warp to redesign LTL freight from the ground up. Published February 28, 2026.
