Poorly optimized shipping logistics can pose an unnecessary expense. This is especially true for larger businesses that ship goods regularly. These optimization errors can include, for instance, renting — and paying for — an entire truck, but only really using a portion of the truck’s capacity. Over time, such an expense adds up, affecting the company’s bottom line.
However, in order to properly optimize the supply chain, and more precisely, the shipping process, it is paramount to know and understand the available options. Any larger business or transportation logistics company who has ever been involved in commercial shipping are familiar with the abbreviations LTL, FTL, LCL and FCL. Knowing exactly what they mean and whether they are the right choice for your business is paramount in creating optimal shipping conditions. Let’s take a closer look at LTL truckloads and what they entail.
What Is Less Than Truckload (LTL)?
Less than truckload, or LTL, is a shipping method used when the shipment size amounts to less than the carrying capacity of the truck. Depending on the provider, this can be up to anywhere from 10,000 to 15,000 pounds. Rather than paying for the entire truck, the company is only required to pay for the portion it will be using. The rest of the trailer will be rented out to other companies.
LTL is much more economical than renting the entire truck when it is not needed. However, the precise cost will depend on various factors, such as the chosen logistics provider, pick-up point and destination, shipment weight and/or volume and type of goods being shipped.
What Is Full Truckload (FTL)?
As the name suggests, full truckload, or FTL, is a shipping method that should be used when there are enough goods to fill up the entire trailer. In this case, the truck will contain goods from only one company. This grants the company higher control over the process and quicker delivery times due to fewer stops along the way.
Needless to say, full truckload shipping is costlier than LTL. However, it is the best option when shipping more goods. Typically, this amounts to around 425 square feet, although the precise number will depend on the type of truck and trailer being used, as well as the shipping provider’s specifications.
Full Truckload (FTL) vs Less Than Truckload (LTL)
When choosing between FTL and LTL, it is important to take into consideration all the differences between the two:
– Price: Overall, less than a truckload comes with a lower price tag. However, the per-pound or per-square-foot rate can be lower on full truckload shipments.
– Delivery time: FTL shipping is more time-effective since there is only one destination. On the other hand, with LTL shipping, the truck needs to accommodate other companies, resulting in more pick-up and drop-off stops along the way.
– Sensitive cargo: If you need to ship fragile or highly valuable cargo, it might be a good idea to go for the full truckload option, as LTL involves a lot of handling, moving around, loading, and unloading of goods.
Overall, when choosing between FTL vs LTL, shipment size will be the main deciding factor. However, companies should still consider delivery times and the safety of their consignments when making the decision.
Other Types of Shipping
What is Less Than Container Load (LCL)?
Less than container load, also known as LCL, is a sea freight shipping method used when the goods that a company wants to ship do not fill up an entire container. In general, any shipment of up to 6 pallets (or 15 cubic meters) can fall in the LCL category, although the precise amount of goods will depend on the provider and the size of the container being used.
Although similar in name, less than truckload (LTL) and less than container load (LCL) are not the same thing. While the former refers to road transportation, the latter is reserved for sea and ocean freight.
What is Full Container Load (FCL)?
Much like LCL, full container load, or FCL, refers to waterborne transportation of goods. However, unlike less than container shipping, FCL is used for shipping consignments that take up the entire container. Standard shipping containers can be 20 feet long and carry up to six pallets (33 cubic meters) or 40 feet long and carry up to 12 pallets (66 cubic meters).
The difference between FCL and LCL closely resembles the difference between FTL and LTL. In other words, FCL is designed for larger shipments, costs more and offers better security, as the container will only be opened upon pick-up and delivery.
Understanding the differences between various shipping methods can be beneficial to users of 3PL services, regardless of their size or requirements. First, there is the reduction of the unnecessary costs of hiring the entire truck or container. Secondly, optimizing the shipping process can also save valuable time and result in shorter delivery estimates. Lastly, knowing how to properly ship fragile or valuable goods can protect them from damage or theft.
However, choosing the right 3PL for the job is just as important. Here at Worldwide Logistics Group, we offer a wide choice of shipping methods to ensure your consignments make it to their destination on time and in pristine condition.