Short answer
LTL, or less-than-truckload, is freight that doesn’t need a whole trailer. The shipper pays for the space and weight it uses, and the LTL carrier moves it with other shippers’ freight through a network of terminals. Rates depend on weight, NMFC freight class, distance, and accessorials such as liftgate or residential delivery.
How an LTL shipment moves
An LTL shipment changes trucks several times. That’s what makes it cheaper for small freight, and it’s also where most of the risk sits.
- A local pickup truck collects the pallets and brings them to the carrier’s origin terminal.
- The freight is cross-docked onto a linehaul trailer, sometimes through one or more hub terminals.
- At the destination terminal it’s sorted onto a delivery truck for the final stop.
The carrier tracks the shipment by its PRO number, and the bill of lading carries the piece count, weight, and class the rate is built on.
How LTL is priced
LTL rates start from the carrier’s tariff for the lane, class, and weight break. Then come the shipper’s negotiated discount, a minimum charge, the fuel surcharge, and any accessorials.
Class comes from the National Motor Freight Classification. NMFTA says the NMFC uses 18 classes from 50 to 500, based on density, handling, stowability, and liability. Lower classes are cheaper to ship. Since NMFTA’s Docket 2025-1 changes took effect on July 19, 2025, density is the primary factor for many items, using a standard 13-step density scale. See freight class for the full table.
Carriers measure and weigh freight at their terminals. If the numbers don’t match the BOL, expect a reweigh or reclass and a corrected invoice.
LTL vs FTL at a glance
| LTL | FTL | |
|---|---|---|
| Trailer space | Shared with other shippers | Dedicated to one shipper |
| Handling | Transferred at terminals | Loaded once, unloaded once |
| Pricing basis | Class, weight, lane, accessorials | Per load or per mile |
| Freight class needed | Yes | No |
| Tracking reference | Carrier PRO number | Load number, BOL, driver tracking |
| Main risk | Reclass charges and handling damage | Paying for space you don’t fill |
For a deeper comparison, see the LTL vs FTL guide.
Example: a two-pallet shipment
Example, with illustrative numbers. A shipper sends two pallets, each 48 x 40 x 48 inches and 500 lbs.
- One pallet: 48 x 40 x 48 = 92,160 cubic inches, divided by 1,728 = 53.3 cubic feet
- Total: 106.7 cubic feet and 1,000 lbs
- Density: 1,000 / 106.7 = 9.4 lbs per cubic foot
On the standard scale, 8 to under 10 pcf is class 100. If the BOL said class 70 and the item uses that scale, the carrier’s inspection will reclass it to 100 and rebill. That’s the NMFTA density method: greatest dimensions including overhang, divided by 1,728, then weight over cubic feet.
Common LTL mistakes
- Guessing dimensions instead of measuring the pallet with overhang.
- Using an old class from before the 2025 density changes.
- Leaving off liftgate, residential, limited access, or appointment needs, then paying them as surprise accessorials.
- Shipping loose cartons that get separated at a terminal.
- Letting the receiver sign clean when the freight arrived damaged, which weakens the claim.
Rules that apply
The NMFC is a voluntary standard, though NMFTA calls it the standard to use absent a carrier’s own published tariff. LTL carriers are still motor carriers, so the BOL rules in 49 CFR Part 373 and carrier liability under 49 U.S.C. 14706 apply to lost or damaged freight.