How does less-than-truckload (LTL) shipping typically operate?

Less-than-truckload (LTL) shipping operates by combining multiple smaller shipments from various customers into one truckload. This method allows for more efficient use of space since the truck does not need to be fully loaded with a single shipment. Instead, the truck makes several stops along its route to pick up and deliver these smaller loads, which contributes to reduced shipping costs and maximizes vehicle utilization. By consolidating shipments, LTL carriers can offer competitive rates and services that cater to businesses with smaller freight needs.

This approach contrasts with other methods where a truck may carry only one shipment or be dedicated to direct deliveries, which would not be practical for the diverse needs of LTL shipping. Thus, the operation of making several stops to accommodate multiple shipments showcases the fundamental principle of LTL logistics, focusing on flexibility and cost efficiency in freight transportation.