Less Than Truckload what is LTL?

Less Than Truckload (LTL)LTL (Less Than Truckload) shipping is the most common mode of shipping products using a truck. An LTL carrier will pickup several small shipments from customers that do not require the entire trailer to be used in getting the product to their customers.

Once the carrer has made all of their pick ups for that day, they will bring the freight back to their terminal. A terminal will also receive freight from other terminals that were picked up the previous day. All of the incoming freight is then sorted and reloaded on other trucks based on their final destination.

When a terminal receives freight from other terminals, this terminal is referred to as a break bulk point or hub. From a profitability standpoint, it is very important to an LTL carrier that they have as many trucks full of product moving from location to location. The main purpose of a hub is to ensure that the carrier is able to properly plan out their network of trucks moving a certain amount of freight.

Once the freight has arrived at the destination terminal, the carrier will deliver the product to the consignee. When an LTL carrier delivers the product, they will require the receiver to sign a Proof of Delivery (POD) certificate to document when the product was received, who received the product, as well as to document that all of the product was delivered in good condition. If the shipment is received damaged and/or short the amount is documented on the BOL. It is very important that the receiver documents these issues to allow the carrier to process the claim.

When a shipment is set to be moved with a carrier, it is important to inform the carrier of all services that will be required to pick up and deliver the shipment. A carrier's base rate service will only include the freight being loaded by the shipper when the carrier backs up to their dock, moving the freight through their network and then delivering it to the consignee's dock and the consignee unloading the product.

If the carrier is required to provide any service above and beyond that description, additional fees, known as accessorials, will be added to the base rate. Example accessorial services include lift gate pick up and delivery, non-commercial pick up and delivery, arrival notifications, fuel surcharges, inside pick up and delivery.