In logistics and freight shipping—especially in the retail and e-commerce sectors—understanding the difference between FTL (Full Truckload) and LTL (Less Than Truckload) shipping is essential.

Choosing the proper method affects not only costs but also delivery time, shipment security, and customer satisfaction. Let’s take a comprehensive look at the differences between FTL and LTL, their advantages and disadvantages, and a guide on when to use each method.

What Are FTL and LTL in the Logistics Industry?

FTL and LTL are types of shipping based on the volume of cargo transported in a single vehicle or truck. The choice between the two depends largely on the scale, urgency, and characteristics of the goods to be shipped.

1. Full Truck Load (FTL)

FTL stands for Full Truckload. As the name suggests, this shipping setup reserves the entire truck or transport vehicle for one shipper’s goods.

Even if the load doesn’t completely occupy the space, the shipper still pays the costs for the full capacity.

How it works: The truck picks up the goods from one location. It delivers them straight to the destination—no stops, no transfers, and no consolidation or deconsolidation at other terminals along the way.

Example: A manufacturing company shipped a large batch of product from a factory to the main distribution warehouse, or a construction project sends large quantities of materials to the project site.

2. Less Than Truckload (LTL)

LTL stands for Less Than Truckload, referring to shipments that don’t fill the truck’s full capacity. In LTL shipping, freight from multiple shippers or for different recipients is consolidated and transported using the same vehicle.

How it works: Items from various shippers will be collected at a consolidation terminal (hub), then arranged and loaded onto trucks along with other goods going to the same destination. The truck will make several stops to pick up and drop off goods at different locations before reaching the destination.

Example: An online store sends several small packages to customers in different cities, or an SME sends a medium quantity of products to several distributors.

Advantages and Disadvantages of FTL

Advantages of Using FTL

Faster shipping speed: Because trucks are dedicated to one shipper and move directly from origin to destination, no time is wasted at consolidation terminals or making multiple deliveries. This makes it an ideal choice for time-sensitive deliveries.

Better cargo security:  With minimal handling (only one loading and one unloading), the risk of damage or loss is much lower than with LTL, which goes through multiple touchpoints. The shipment is also kept separate from other loads.

Easier and more controlled shipping: The logistics process is more straightforward because it involves only one shipper and one recipient. The shipper can fully control the schedule and route and has better visibility of shipment status.

Higher shipping priority: FTL shipments are often more prioritized by logistics providers because the full truck capacity allows for streamlined scheduling and eliminates delays caused by other loads.

Perfect fit for high value or fragile items: Minimal handling risks make FTL a safe choice for items that are highly valuable, fragile, or require special handling.

Disadvantages of Using FTL

Shipping costs tend to be higher: This is a major drawback of FTL. Shippers must pay for the full capacity of the truck, even if the goods being shipped don’t fill the entire truck. This can be very cost-inefficient for small loads.

Not a fit for small loads: If you only need to ship a few pallets or small boxes, FTL can be costly because you’re also paying for unused space.

Limited vehicle availability: You need to find a truck that fits the size and type of your load. The availability of certain trucks may be challenging in certain areas or times.

Requires larger torage space: At both the shipper and recipient locations, you need to ensure there is sufficient space to accommodate the entire FTL truck load for the loading and unloading process.

Disadvantages and Advantages of LTL

Advantages of Using LTL

Lower shipping costs: This is the main appeal of LTL. Shipping costs are shared with other shippers who use the same truck’s cargo space, making it a very cost-effective option for small-volume shipments.

Higher flexibility delivery for small loads: You don’t have to wait for the truckload to be full. LTL allows for regular shipments of small or medium-sized items, ideal for small businesses or enterprises with sporadic deliveries.

Higher eco-friendliness: By consolidating multiple shipments into a single truck, LTL reduces the number of vehicles operating on the road. This contributes to reduced carbon emissions and a smaller environmental footprint.

Access to a wide network: LTL logistics companies typically have a wide network of terminals and routes, allowing them to serve a wide range of locations, even remote ones, at a relatively affordable cost.

Integrated tracking: Most modern LTL services are equipped with advanced tracking systems, allowing shippers and recipients to monitor the status of their shipments in real-time.

Disadvantages of Using LTL

Longer shipping time: Because trucks have to travel to several terminals and make multiple stops to pick up and drop off goods, LTL transit times are longer and less predictable than FTL.

Higher risk of damage or loss of goods: Every time goods are loaded or unloaded at a terminal or delivered to a different location, there is an increased risk of damage or loss. Goods may also be combined with other cargo, which can increase the risk.

More coordination: Complex consolidation and routing processes require careful planning and coordination from service providers, which can sometimes lead to delays.

For small goods only: LTL has specific size and weight restrictions per package or pallet. Oversized or hefty items are generally not suitable for LTL shipping.

Less control: Shippers have less control over specific routes or delivery schedules, as these are managed by the service provider based on the consolidation of cargo from multiple parties.

When Should You Use FTL and LTL? 

Choosing between FTL and LTL depends largely on the shipper’s specific needs—cargo size and type, delivery urgency, and budget. Explore some key factors below to find out which option works best for you.

FTL is Perfect for

Oversized Goods:  Your loads fill most or all of the truck’s cargo space, e.g., more than 10 standard pallets or weighing over 4,500 kg.

Short Time and Urgent Shipping: You need direct point-to-point delivery without delay.

High Value or Critical Items: You need maximum security and minimal handling to reduce any risks.

Extremely Fragile or Sensitive Items: FTL’s minimal handling will protect your items from damage.

Full Control: You can enjoy full control over delivery schedules and routes.

LTL is Perfect for:

Small to Medium Volume Goods: Loads that don’t take up the entire cargo space, such as 1–6 standard pallets, or anything under 4,500 kg.

No-Rush Shipping: You have flexibility in your schedule and don’t mind longer transit times.

Cost Savings: You want to cut shipping costs by sharing truck space.

Short Haul or Intracity Delivery: While LTL can be for long hauls, its cost efficiency is greatest for short routes with multiple drop-offs.

Less Fragile Items: Your items are sturdy enough to withstand handling at several stops.

However, it’s important to remember that the final decision must be based on a thorough analysis. Consider all factors such as the total cost (including insurance, if any), the required shipping time, distance, specific locations of the shipper and recipient, and the type of goods being shipped.

Consultation with a professional logistics service provider is also highly recommended to get the optimal solution.

Tips for Choosing FTL or LTL for Your Retail Business

Calculate comprehensively
Factor in the volume and weight of the goods, along with the vehicle capacity, when making your calculation.

Analyze the distance and destination
LTL is for regional distribution, while FTL is for long-haul and direct routes.

Evaluate the value of goods
The higher the value of the goods, the greater the need for FTL.

Use digital platforms
Use the TMS (Transportation Management System) software to determine the best options based on real data.

Consider the SLA (Service Level Agreement)
Make sure the delivery service has clear SLAs for shipping time, quality, and accuracy.

Understanding the differences between FTL and LTL is crucial for retail and e-commerce businesses looking to optimize their product distribution processes.

Factors like shipment volume, shipping urgency, product value, and logistics costs should guide the choice of service.

By integrating the right delivery strategy into their supply chain, businesses can gain a significant competitive edge—boosting efficiency and enhancing customer satisfaction.

For this reason, businesses need to partner with professional logistics service providers experienced in stock management and the distribution of goods.

SELOG Logistics Services

One of the service providers that could be a good choice is SELOG, a business line of PT Serasi Autoraya (SERA), which is also the part of the Astra Group and has 20 years of experience in the logistics industry.

SELOG is committed to offering a comprehensive and end-to-end logistics service needs, from trucking, shipping services, freight forwarding, warehousing, and project cargo.

Choose from SELOG’s exceptional Trucking services—Long Haul, Last Mile, and Less than Truckload—all ready to meet your shipping needs to various regions with quality fleets, such as CDD, CDE, FUSO, Light Vehicle, Prime Mover & Trailer, Tronton, and Wingbox.

Each service SELOG provides is also powered by the latest digital technology, Astra Fleet Management Solution (AstraFMS), which brings greater convenience, effectiveness, and efficiency to your business.

With its AstraFMS, SELOG provides businesses in Indonesia with IT-based comprehensive solutions for managing fleet vehicles.

For more information about SELOG services, visit www.selog.astra.co.id or contact us at (021) 26605333.

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