Like with all other transportation methods, FTL has its advantages and disadvantages.įull truckload shipping is an excellent option for those who urgently need to send out products from one place to another. When FTL Shipping is Optimal and When It Is Not
FTL offers more when shipping in bulk in terms of cost savings, whereas LTL is better suited for those shipping only a few pallets at a time. Shippers will load their cargo onto the truck, which will then drive directly to its destination.Īs such, the truckload shipping method is preferred by wholesalers and those who typically handle raw materials, high-value freight, sensitive or otherwise hazardous materials. As its name would suggest, this model removes all of the additional pitstops found in the hub-and-spoke model. From here, it will be loaded onto a different truck and sent to its last location.įTL follows a more straightforward path under a point-to-point distribution model. This is where smaller freight shipments are collected from an area, brought together to a regional hub, consolidated onto a single truck, and sent to a second warehouse in the final destination’s region. LTL shipping follows a hub-and-spoke distribution model. With FTL, shippers don’t share truck space and typically take a shorter time for the cargo to reach its destination. While FTL is ideal for shippers looking to transport large volumes of products or enough to fill an entire truck trailer, LTL refers to a shipping method in which shippers share trailer space with the goods of others. The Main Differences Between FTL and LTLįull truckload shipping is best understood by comparing it to less-than-truckload (LTL). In this complete guide to FTL freight shipping, we will be exploring the details regarding this shipping method as well as the tools and methods that supply chain experts will need to succeed in 2021 and beyond.
Generally speaking, truckload freight shipping represents one of the quickest and flexible modes of transportation over land, particularly in the United States. It’s followed by parcel shipping with 16.4%, air freight with 12%, and less-than-truckload (LTL) with 11.3%. According to the latest statistics, FTL shipping holds 46.4% of the market share. In addition, there are also roughly 17,000 freight brokers operating in the industry.Īdditionally, full truckload (FTL) makes up the largest share of the freight market. Some 91% of freight carriers operate with six or fewer trucks, while 97.3% operate with fewer than 20. That’s around $791.7 billion in gross freight revenues, and according to the US Department of Transportation, over 700,000 registered motor carriers are in the market. As of 2019, the trucking industry represented about 80.4% of the country’s entire freight bill.
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