While FTL/TL and LTL are both very common shipping methods, many factors differentiate them:
Size
First of all, the size of the consignment to be transported must be taken into account.
LTL shipments are small in size, usually weighing between 100 and 10,000 pounds. These shipments are not big enough to occupy a whole truck and usually contain packages from multiple suppliers.
At a certain point, all shipments “cube out.” This means that they approach a size at which it makes more financial sense to just ship FTL instead. LTL is defined depending on the size and weight of the items being shipped, according to the point at which they cube out.
In contrast, FTL freight occupies a whole truck and is quite bigger, usually weighing 20,000 pounds or more. These deliveries typically carry one supplier’s items to a retailer’s distribution center (DC).
However, if an order weighs between 5,000 and 10,000 pounds, there’s the option to ship it via “volume LTL” and “partial truckload”. Volume LTL is a method of shipping that leverages under-utilized trailer space, while partial TL is simply an FTL shipment that doesn’t take up the entire truck. However, when shipping Volume LTL, it is unlikely to have a guaranteed transit time. The pickup dates are inexact because it is based on the availability of equipment.
Time
One of the benefits of FTL is that shipments move quickly. (See also dedicated sprinter or straight truck shipping for methods that are timely).
LTL shipments have multiple stops because they carry loads from different businesses, so their delivery time is longer. Generally, FTL shipments use the same truck to collect and deliver, resulting in quicker deliveries.
Price
Because LTL shipments do not occupy the entire truck, businesses pay only for the space their products fill. Shipments from other companies use the rest of the space. Thus, LTL works out to be much cheaper than FTL shipments.
Handling
Fragility and handling of the shipment are also crucial aspects to consider during transportation. During FTL shipping, a company’s cargo remains on one truck from pickup to delivery. This process minimizes the risk of damage or misplacement. However, LTL shipments may change vehicles or undergo multiple transfers before delivery, which can make cargo vulnerable to damage or misplacement.
How Walmart Does Freight
Walmart enhances the efficiency of its suppliers by engaging in a practice called “vendor pooling,” which converts regular LTL shipments to FTL shipments.
Vendor pooling groups together multiple vendors’ shipments onto one truckload and only occurs when the suppliers utilize the same warehouse and logistics companies.
Walmart will submit purchase orders for suppliers within a particular vendor pool, sending copies to the warehousing company, which then delivers goods for all of those suppliers from one full truckload. Together, with other Walmart suppliers, businesses can fill up a full truckload (FTL) from one warehouse and decrease the risk that comes with LTL shipping.
Sometimes, Walmart will also work with suppliers on increasing their order quantities so that the order will fill a full truckload, instead of relying on LTL shipping.
Walmart’s strict rules ensure stocked shelves and goods delivered just when the retail stores need them. The retail giant has a Must Arrive By Date (MABD) provision, which states that suppliers must deliver goods to the store within a fixed four-day delivery window. At the same time, they also must maintain high invoice accuracy. Must Arrive By Date is a common industry practice for retail stores so that shipments are delivered on time.
Choosing the right shipping method depends on several factors. Businesses should weigh the size of the shipment, the expected delivery time, the cost of shipment methods, and the way they wish their goods to be handled.