FTL vs LTL: Choosing the Right Transport Mode for Your Business
The Most Important Decision in Freight
Every shipment begins with a fundamental question: should you book a full truck or share space with other shippers? The choice between Full Truckload (FTL) and Less Than Truckload (LTL) affects not just your transport costs, but also transit times, handling risk, and supply chain flexibility. Getting this decision right is one of the most impactful cost levers available to logistics managers.
What Is FTL (Full Truckload)?
FTL means you book an entire truck for your shipment, regardless of whether you fill the full capacity. The truck travels directly from your pickup point to the delivery destination without stops to consolidate or deconsolidate other cargo.
When FTL Makes Sense
- High-volume shipments that fill or nearly fill a standard trailer (typically 33 euro-pallets or 24 tonnes)
- Time-sensitive deliveries where direct routing reduces transit time significantly
- Fragile or high-value goods that benefit from minimal handling — your cargo is loaded once and unloaded once
- Hazardous materials that cannot be easily consolidated with other goods
- Dedicated temperature requirements where the entire trailer must maintain specific conditions
Typical FTL Characteristics
A standard FTL shipment in Europe uses a 13.6-metre curtainside or box trailer. Transit times are predictable because there are no intermediate stops. The carrier picks up your goods, drives to the destination, and delivers. Simple, direct, and fast.
What Is LTL (Less Than Truckload)?
LTL means your shipment shares truck space with cargo from other shippers. A consolidation network — operating on a hub-and-spoke model — combines multiple smaller shipments onto shared vehicles, reducing per-unit transport costs.
How LTL Works
- Your goods are picked up from your facility
- They travel to a local hub (cross-dock terminal)
- Cargo is sorted and consolidated with other shipments heading in the same direction
- A linehaul truck carries the consolidated load to a hub near the destination
- Final delivery is made from the destination hub to the consignee
When LTL Makes Sense
- Smaller shipments (1-10 pallets) that do not justify a full truck
- Cost-sensitive routes where sharing capacity produces meaningful savings
- Regular, predictable volumes that fit well into consolidation schedules
- Non-urgent deliveries where an extra day or two of transit is acceptable
Cost Comparison
Understanding the cost structures of FTL and LTL is essential for making informed decisions.
FTL Pricing
FTL is priced per truck, typically based on distance, route, and market conditions. The cost is fixed regardless of whether you load 5 pallets or 33 pallets. This means that per-pallet costs decrease as you fill more of the truck.
LTL Pricing
LTL is priced per loading metre or per pallet, plus surcharges for fuel, tolls, and sometimes residential delivery. The per-unit cost is higher than FTL for large shipments, but significantly lower for small ones.
The Break-Even Point
For most European routes, the cost break-even between FTL and LTL typically falls between 10 and 15 pallets. Below this range, LTL is usually more economical. Above it, FTL offers better value. However, this varies by route — high-volume corridors have more competitive LTL rates, while remote destinations may favour FTL even for smaller loads.
Hidden Costs to Consider
- Detention and demurrage: FTL trucks waiting at loading docks cost money. LTL avoids this with scheduled pickup windows.
- Handling damage: Each touch point in LTL increases the risk of damage. FTL cargo is handled only twice (loading and unloading).
- Accessorial charges: LTL carriers often add fees for liftgate service, inside delivery, appointment scheduling, and redelivery.
- Insurance premiums: FTL shipments may qualify for lower insurance rates due to reduced handling risk.
Decision Matrix
| Factor | FTL | LTL |
|---|---|---|
| Volume | 15+ pallets | 1-14 pallets |
| Speed | Faster (direct) | Slower (hub transfers) |
| Cost per pallet | Lower at high volume | Lower at low volume |
| Handling risk | Minimal (2 touches) | Higher (4-6 touches) |
| Flexibility | Fixed schedule | Shared schedule |
| Tracking | Full visibility | Variable by carrier |
| Temperature control | Full trailer control | Shared conditions |
Hybrid Strategies
The FTL-vs-LTL choice is not always binary. Smart shippers use hybrid strategies to optimize across their entire shipment portfolio.
Partial Truckloads
Some carriers offer partial truckload rates for shipments that are too large for LTL but too small for FTL. These loads fill roughly half a trailer and are priced between FTL and LTL rates, offering a good balance of cost and service.
Milk Runs
For shippers with multiple delivery points in the same region, a milk run — where one FTL truck makes several stops — can be more cost-effective than sending individual LTL shipments to each location.
Consolidation Services
Third-party logistics providers can consolidate shipments from multiple shippers into FTL loads, passing on the cost savings. This is particularly effective for regular, predictable volumes on popular corridors.
When to Split Shipments
Sometimes the optimal strategy is to split a large order into an urgent FTL portion and a less time-sensitive LTL portion. This keeps express costs manageable while ensuring critical items arrive on time.
How to Optimize Your Mode Selection
The best shippers do not choose FTL or LTL once and stick with it. They continuously optimize based on data.
- Analyse your shipment profile: Track volumes, frequencies, and destinations over time to identify patterns
- Benchmark regularly: Market rates fluctuate — what was cheaper last quarter may not be this quarter
- Consider total cost: Factor in handling damage, insurance, detention, and accessorial charges — not just the line-haul rate
- Build carrier relationships: Long-term partnerships with both FTL and LTL carriers yield better rates and service
- Use technology: Transport management systems can automatically recommend the optimal mode for each shipment based on your rules and market conditions
The right transport mode is not a fixed answer — it is a dynamic decision that evolves with your business volumes, market conditions, and service requirements.
