FTL vs LTL: Key Differences and Which Shipping Method to Choose

Additionally, optimizing logistics routes using FTL or LTL can enhance operations and add value, depending on your priorities—whether that’s cost, delivery speed, or route efficiency.

This article breaks down each method's main differences, benefits, and best use cases, helping you make more informed shipping decisions. We’ll also explore how Planimatik planning-first TMS enables shippers to have end-to-end control over the shipping process.

Key Takeaways:

• What does FTL vs LTL mean, and why do the differences matter?

• Key benefits of each shipping method and use cases.

• Practical advice for choosing the best option based on your logistics needs.

What are FTL and LTL?

FTL, or Full Truckload, refers to shipments that require the entire space of a truck. On the other hand, LTL, or Less Than Truckload, refers to smaller shipments that do not require a full truck. The choice between FTL and LTL depends on factors such as the size and weight of the shipment, delivery time, cost, and the nature of the goods being transported.

Is LTL more expensive than FTL?

Calculating trucking freight rates can be challenging. Generally, LTL can be more cost-effective for smaller shipments since it shares truck space with other loads, distributing the cost among shippers. However, rates for LTL can fluctuate, affecting budgeting predictability.

Smart solutions like Planimatik’s ‘Save Quotes’ feature help shippers manage these fluctuations. As LTL shipment rates are constantly changing, this feature allows shippers to save the quotes they received LTL rates on, providing stability in a dynamic market.

Shippers can save quotes, but only for some time because the market fluctuates. That is why the saving option has an expiration date of up to 4 days. Planimatik's 'Save Quote' feature empowers shippers to capture and secure LTL rates amidst constant fluctuations. By saving quotes, you gain stability and control over your shipping costs, ensuring you make informed decisions in today's dynamic market.

Key Differences Between FTL and LTL

Main Benefits of FTL and LTL

Transportation Management Systems (TMS) are essential for freight optimization and supply chain management. With Planimatik’s FTL and LTL solutions, logistics coordinators and their teams can unlock critical advantages, including:

Cost Reduction:

By choosing the suitable shipping method based on load size, you can reduce unnecessary costs—for example, using FTL for bulk shipments to lower per-unit costs or LTL for smaller shipments to avoid paying for unused truck space.

With Planimatik’s Stats feature, you can track average costs. Keep track of the expenses of loads you've moved over specific periods. Whether you're analyzing monthly expenses or quarterly budgets, Stats empowers you to stay on top of your financial performance.

Increased Productivity:

With Planimatik’s Stats feature, shippers can easily access their freight operation data, a feature designed to give them a comprehensive snapshot of their logistics performance. They can filter data by dates, monitor pick-ups and deliveries, gain insights into trailer utilization, and more.

With Stats, you can make informed decisions, optimize operations, and drive success in your freight management journey. Stats is our new feature that comprehensively overviews your logistics performance.

You'll have access to key metrics that enable you to make informed decisions and optimize your operations for success. You can also:

• Filter by dates: dive deeper into your data by filtering it based on specific dates. Whether examining recent activity or historical trends, Stats allows you to customize your view and focus on the periods that matter most to your business.

• Monitor pick-ups and deliveries: Track the number of pick-ups and deliveries across different states to understand your operational efficiency. With this insight, you can identify high-traffic areas, optimize your routes, and streamline your processes for maximum productivity.

• Tyler-type view: The trailer-type pie chart provides insights into trailer utilization, helping you optimize resource allocation and operations for greater efficiency.

By leveraging the insights from Stats, you can strengthen relationships with your providers, identify top-performing partners, negotiate better rates, and make data-driven decisions that drive success. With Stats, you're equipped with the tools to take your logistics operations to the next level.

Faster Delivery Times

With automated planning and real-time data, FTL ensures quick, direct routes, while LTL optimizes shared routes. This keeps transit times predictable and efficient.

Simplify Shipping with Saved Addresses: The Planimatik’s Facilities feature allows shippers to save frequently used addresses for a faster shipping process. This speeds up operations and boosts efficiency by enabling quick access to saved locations.

By reducing errors with pre-saved, verified addresses, shippers can simplify their workflow, easily manage and retrieve frequent addresses, and improve overall productivity, spending less time inputting data and more time on critical tasks.

When Should You Choose FTL vs LTL?

There are different scenarios in which each shipping method would make more sense. Here is a simplified explanation with examples:

Considerations When Deciding on a 3PL for FTL and LTL Services

Selecting the right third-party logistics (3PL) provider for FTL and LTL services is crucial for cost savings and efficiency. Key factors to consider include:

• Expertise, visibility, and customer service.

• Well-balanced on the amount charged and quality offered.

• Use of reliable technology for managing shipments and client communication.

Third-party logistics providers (3PL) can help lower transportation costs and increase efficiency. 3PL providers can bring expertise, technology, or even economies of scale. However, choosing the right 3PL partner is essential. Consider their reputation, relevant experience, and capabilities. Do their goals align with yours?

TMS adoption is also an essential consideration. These platforms don’t just streamline your operations but also save money and give you an edge over the competition. Learn how to choose the best TMS.

Planimatik: Transparency and strategy for LTL and FTL

As we’ve explored, FTL and LTL each have unique benefits, and the right choice depends on your specific logistics needs.

Planimatik’s solutions make managing both FTL and LTL easier by providing transparency, data-driven insights, and strategic planning tools.

Ready to realize the benefits of optimized freight planning? Get your free demo of Planimatik’s software today and discover how our platform can elevate your logistics operations.