FTL vs LTL – Choosing the Right Truckload for Your Business

FAST Logistics Group, the leading provider of end-to-end logistics and selling and distribution in the Philippines, explains the differences between FTL (Full Truckload) and LTL (Less than Truckload) to help businesses choose the best option for their shipping needs.

Choosing the right truckload can significantly impact business efficiency and bottom line. By selecting the appropriate truckload type, businesses can optimize space utilization, reduce shipping costs, and ensure that their goods are transported safely and securely.

It is crucial to understand the differences between truckload services, particularly Full Truckload or FTL and Less than Truckload or LTL. Understanding the advantages and disadvantages of each delivery method can help supply chain managers and business owners make informed decisions that align with their specific trucking needs and goals.

Types of Truckload

Truckloads are generally classified according to the volume of goods being shipped. The primary categories are FTL and LTL.

What is FTL

Full Truckload or FTL refers to the use of an entire truck for deliveries. It is akin to renting an entire room for goods, giving businesses full control over the truck’s contents from dispatch to its final destination. This method is often preferred by large businesses that ship high volumes of goods regularly. In addition, delivery times are faster with FTL since the truck moves directly from the origin to the destination.

What is LTL

Less than Truckload or LTL is a freight service where multiple companies or small businesses share a single truck. Similar to carpooling for goods, each business pays only for the space their cargo occupies, making it a cost-effective solution for those with smaller shipments. This delivery method is particularly advantageous for small to medium-sized businesses that do not have sufficient volume to fill an entire truck.

What are the Benefits of FTL

This method is employed when a shipment is sufficiently large to occupy an entire truck. Key features of FTL shipping include the following.

Enhanced Cargo Security and Control

Among the two shipping methods, FTL offers distinct advantages including enhanced security and control. The exclusive use of the entire truck allows businesses to have complete command over the loading and unloading of cargo, ensuring it is handled precisely according to the specified requirements. This meticulous handling can significantly reduce the chances of damage during transit, as the cargo is not exposed to the risks associated with shared space.

Exclusive Use and Increased Safety

In FTL, the cargo does not share space with goods from other shippers. It removes the risk of contamination or damage from other shippers’ products, which is particularly crucial for sensitive or high-value goods. This delivery method is ideal for businesses that prioritize the secure and timely transport of their valuable merchandise.

Faster Transit Time

FTL shipments generally have faster transit times compared to other LTL carriers. Since the truck is dedicated to one company, it can bypass multiple stops and consolidations which reduces delays. This streamlined process ensures that shipments reach their destinations more quickly and efficiently, making FTL the preferred choice for businesses with time-sensitive shipments. 

Cost-Effectiveness for Large Shipments

While FTL can be more expensive upfront, it becomes cost-effective for large shipments. When shipping high volumes, the cost per unit of freight also decreases. It also avoids the complexity and costs associated with multiple pickups and deliveries, making it an economical choice for businesses that regularly move large quantities of goods.

What are the Benefits of LTL

For businesses with smaller shipping needs, LTL can be a more suitable option. Here are some benefits of LTL shipping.

Cost Savings for Small Shipments

One of the primary advantages of LTL is cost savings. Since multiple companies share space on one truck, each business pays only for the space occupied by their goods. This shared cost structure makes it more affordable for businesses that do not have large shipment volumes and cannot fill an entire truck.

Flexibility in Shipment Sizes

LTL offers greater flexibility when it comes to shipment sizes. Whether a company is shipping a few boxes or several packages, LTL can accommodate varying volumes. This flexibility is particularly beneficial for businesses with fluctuating inventory levels as it allows them to scale their shipping needs up or down without committing to a full truckload.

Frequent Departures

LTL shipments often have more frequent departures compared to FTL. This means businesses can ship their goods more regularly, avoiding the need to wait until they have enough cargo to fill a single truck. This frequent shipping schedule can help maintain a consistent supply chain and reliable deliveries of raw materials or finished products.

Multiple Drop-Off Points

Logistics providers offering LTL solutions enable multiple drop-off points, facilitating the delivery of goods to various destinations in a single trip. This approach is especially beneficial for businesses that have customers in diverse locations or retail stores.

Lesser Carbon Emissions

LTL shipping is a more eco-friendly option compared to FTL. By combining multiple shipments into one truck, it reduces the number of trucks on the road, resulting in fewer emissions. This environmentally conscious approach can be beneficial for businesses looking to reduce their carbon footprint.

Cost Advantages of LTL Over FTL

Both LTL and FTL shipping methods have distinct advantages depending on the volume and size of goods being shipped. Here are some of the advantages of LTL over FTL.

Lower Upfront Costs

One of the most significant cost advantages of LTL over FTL is the lower upfront costs. Multiple shippers only pay for the space they use because they share a single truck, leading to significant savings compared to FTL costs.

Reduced Inventory Storage Costs

With LTL, businesses can ship goods more frequently, reducing the need for large storage spaces. By maintaining a leaner inventory, businesses can minimize storage and transportation costs and free up capital for other operational needs such as enhancing product development, improving customer service, or expanding their market reach.

Savings on Unused Space

In FTL shipping, companies still have for the entire space even if their foods cannot fill a truck. Working with LTL shipping providers empowers businesses to reduce costs because they only have to pay for the space they use. This ensures that companies do not waste money on unused truck capacity while also promoting more efficient and sustainable delivery practices.

How FAST Can Help With Your Delivery Needs

FAST Logistics Group is the leading provider of end-to-end logistics solutions in the Philippines. It offers businesses fast, efficient, and affordable LTL solutions across various routes so they can deliver their cargo to deliver their cargo to multiple locations without the hassle of managing their fleet. With Cargo DOK by FAST, businesses are empowered with quick and easy-to-book deliveries along various routes. Here’s how businesses can benefit from FAST.

Easy to Book and Convenient

Businesses can easily avail of Cargo DOK by FAST. They only have to bring or pick up their shipments to our Cargo DOK (Drop-Off Kiosks), strategically located in key cities and designed to streamline the drop-off process. It allows businesses to schedule drop-offs at their convenience, making logistics management simpler and more efficient.

Fixed Delivery Schedules

One of the standout features of Cargo DOK is our fixed, delivery times and schedules. This ensures that LTL shipments arrive on time, every time. Consistent schedules help businesses plan better and maintain a steady supply chain. Know more about delivery schedules here.

Competitive Rates

FAST offers competitive rates for its LTL solutions. Customers only have to pay for the truck space they will use. Our pricing model ensures businesses of all sizes get the best value for their money, without compromising on service quality.

Flexible Cargo Size

With FAST, businesses have the flexibility to ship varying cargo sizes. Whether they are sending small packages or boxes, our LTL solutions can accommodate their needs. This flexibility helps businesses manage their inventory more effectively.

Additional Drop-Off Sites

Cargo DOK includes multiple drop-off and pick-up sites, making it convenient for businesses to send their shipments. These additional sites ensure that you can easily access our shipping services, no matter where your customers are located. Our routes include:

• Route 1: Cebu – Ormoc – Tacloban – Manila and vice versa
• Route 2: Cebu – Bacolod – Iloilo –  Caticlan, Manila and vice versa
• Route 3: Cebu –  Cagayan de Oro – Davao and vice versa

This is a practical transport solution, especially for business owners seeking a faster, more affordable, and convenient method to deliver cargo from Manila to Cebu.

Reliable Handling and Safe Delivery of Goods

Your cargo is in safe hands with FAST. Our experienced team ensures reliable handling and safe delivery of your goods using our Transport Management System, a suite of software solutions that enable us to have real-time visibility over the location of our fleet and cargo. This advanced tracking technology allows businesses to monitor their cargo in transit and receive timely updates, ensuring peace of mind throughout the delivery process. An industry leader, FAST has a proven track record of providing quality and consistency that makes it a trusted partner for cargo delivery needs.

Leverage Cargo DOK by FAST for LTL Needs

Choosing between FTL and LTL shipping depends on your business’s specific needs. While FTL offers enhanced security, faster transit times, and cost-effectiveness for large shipments, choose LTL shipping which provides a budget-friendly option with greater flexibility for smaller loads.

For businesses looking to optimize their shipping processes, FAST Logistics Group offers a reliable and efficient LTL delivery solution. With our extensive network, competitive rates, and advanced tracking technology through Cargo DOK, you can trust us to handle your logistics needs with care and precision. By choosing Cargo DOK by FAST, you can ensure that your goods are delivered on time, every time. 

Learn more about FAST and how we can transform your logistics operations. Connect with our Solutions Experts or visit our site to learn more