• April 19, 2024

How to Reduce Shipping Expenses for Small Business through LTL Shipping

Shipping practices should be one of the most vital decisions a business makes. After all, shipping or deliveries takes up a large portion of the budget since they make shipments continuously. Nowadays, many growing businesses, especially eCommerce, use LTL shipping or less-than-truckload services to replenish their inventories. This is because LTL allows them to cut extra costs when moving smaller amounts of goods. 

Here, you will learn why LTL matters, especially to small businesses, and how it works.

What Is LTL?

LTL freight shipping is a shipping service method for transporting smaller loads of goods weighing 150 to 15,000 pounds without utilizing the entire truck. A shipper pays for the portion of a truck trailer their freight occupies, while other shippers also pay for the space their shipments use.

This service is offered by truck freight companies, which are available in the following provider types:

  • Local Carriers. Freight companies, which operate within a local radius of 80 to 800 miles.
  • Regional Carriers. Companies, which transport products within larger territories than the local carriers. In addition, they deal with regional and national providers between unconnected distribution centers.
  • National Carriers. These companies work throughout the country and use more shipping equipment with more personnel and industry expertise.

Factors that Affect LTL Shipping Rates

1. Location. In general, the farther the distance, the higher the price.

2. Mode. LTL shipments can be expedited, or transportation is accelerated for an additional cost.

3. Dimensions. The measurements and weight of a shipment directly impact rates.

4. Type. Often, a delivery requiring special handling or devices, like fragile, hazardous products, or perishables, will have higher costs.

How Does LTL Delivering Work?

You can save from paying full truckload expenses because you combine your small shipments with other shippers to create full truckloads. Its rate is based on the space used, the class of items being shipped, and pickup and destination locations.

Benefits of LTL Shipping

1. Cost Savings

Since your delivery doesn’t occupy the whole truck space, its cost is calculated based on how much space it occupies, which is less expensive than what an average shipment would cost.

2. Reduced Warehouse Expenditures

As a small business, you can depend on LTL freight shipping to cut warehouse costs rather than leasing extra space to store your products. Instead, you can send some of these through LTL shipping.

3. Environmental-Friendly

Did you know that you are helping the environment when you use the LTL shipping process? 

Trucks contribute to carbon emissions. When you use LTL shipping carrying full loads of shipments, there will be fewer trucks on the road, as opposed to more trucks operating, carrying less than their capacity.

4. Improved Customer Service

These days, many freight companies provide flexible and hassle-free service choices. These will help shorten the delivery time that also aids in improving your customer service. These could be residential shipment, inside shipment, etc.

5. Easier Tracking of Shipments

Forget about the troubles of tracking your shipments since a lot of freight companies have modern and top-of-the-line tracking systems. This also allows your customers to keep an eye on the progress of the delivery.


Selecting LTL as your method of transporting products to your customers or restocking your warehouse is no doubt practical and cost-effective. To optimize the benefits of LTL shipping, you need to know how the LTL industry works and how it benefits you as a small company. It also helps you understand the kinds of shipping methods you can utilize, such as dry van transport, flatbed trucks or FB transport, and refrigerated options, depending upon your items.

Remember: If you have several orders from different places, third parties can help you. If these orders are going to the same location, then try shipping them at the same time. On top of these, ensure to know the exact info of your deliveries, like the weight of your items and the number of pallets your items will move on.