Quarterly Live Group Demo Watch Now

Sifted logo

Shipping Insights: LTL vs. Parcel Shipping

by Shelby Kimball

Apr 6, 2022

5 min read

Shippers should always be on the hunt for optimization and cost-reducing shipping methods. And one way to ensure that you’re making the best choices? HOW you ship your products to consumers.

But when comparing parcel to LTL freight options, it’s hard to tell which choice is best. And it’s crucial that shippers like you understand the differences, but more importantly, which one is most profitable for your shipping business.

Let’s deep dive into LTL and how it compares to standard parcel shipping services.

 

What is LTL? 

LTL is ‘less than truckload’ shipping. And it’s used when a shipper’s products won’t fill a full truckload (FTL). It’s also an alternative shipping method to parcel carriers when products are too large, need pallet protection (cluster of products shipped on one pallet, moving as a group), or aren’t shipped often. And because the products only take up a portion of the truck, shippers can share the space. Think ‘rideshare,’ but for the transportation of your products – or a bus where many people get on but have different destinations for drop off.

 

What do parcel shippers need to know about LTL for their shipping needs?

LTL could be a reasonable alternative to traditional parcel services if:

  1. Time isn’t a huge factor in the delivery of your products. Remember the bus analogy? There are many stops to drop off all the products on the truck (not just yours), so it’s not a straight shot.
  2. Your products are larger or uniquely shaped, making it harder to transport through parcel methods. Dodge those hefty oversized/large packages fees from carriers. But still accurately calculate length, width, height, and weight. LTL carriers depend on measurements to assign individual loads for each truck. Inaccurate dimensions or weights result in pricey shipment adjustments from the carrier.
  3. If you need or want all of your packages delivered to a single location. This can save on costs since all your products are moving together
  4. You’re not shipping regularly
  5. Your products need more protection from loss or damage. LTL freight uses pallets to secure your shipments which can significantly reduce any risks associated with damaged products during transit
  6. You’re shipping across multiple parcel zones. Not only does LTL offer fewer checkpoints throughout the transit process, but it allows for zone skipping to avoid traditional parcel carrier zone charges. It’s also considered a safer shipping option because there are fewer transfers

Going with LTL freight over a parcel service can be beneficial for all the above reasons, but that doesn’t mean it’s always the right choice for your specific business, or cheaper. Since LTL carriers tend to charge a bit more when you can’t fill the truck bed, and parcel carriers have hefty fees for bigger packages (or lack the room period) – shippers need to weigh their options carefully.

 

What’s the difference between parcel services and LTL?

Let’s look at some factors to consider between the two services:

  1. Parcel shipping
      • Capable of shipping packages weighing less than 150lbs and easier to transport
      • Improved economical advantage by sending fewer, lighter packages
      • Advanced delivery and pickups: shipments can be scheduled in advance for convenience
      • Higher risk for damages, loss, and delays (due to multiple checkpoints throughout the transport process)
      • Has various delivery locations and drop-offs
  2. LTL shipping
      • Used for packages that are oversize/large or even oddly shaped
      • Allows for the product to be palletized and stored efficiently to avoid risk (which carriers LOVE)
      • Higher package security means fewer checkpoints or check-ins
      • Less risk in transit (odds of damage and loss are lower)
      • Handles the capacity that traditional parcel shipping cannot while giving an alternative option to FTL
      • Allows for all shipments to be delivered in a singular location to save
      • More environmentally friendly. Emissions are reduced by using fewer trucks

In sum, if shippers have small packages that can be handled without additional lifting and are easy to transport in large volumes, traditional shipping routes are the way to go. But if the products are large, harder to transport, and need more space or protection to reduce damage, LTL shipping is likely the best option. And that’s where some data digging comes into play.

How can shippers maximize savings? 

Easy. It’s all in your data! Your historical shipping data holds all the answers to which transportation service makes the most sense, and don’t worry; we’re not asking you to forage through your spreadsheets.

Sifted can sift through your shipping profile and parcel data to find you the best shipping solutions that are easy on your mind and wallet.

And if you do decide to go with an LTL carrier, we’ve got you covered. Our NEW LTL reporting dashboards offer you insight into:

  • Invoice count
  • Net spend
  • Spend by month
  • Spend by carrier
  • Spend by charge
  • Average shipment cost
  • Average cost/pound
  • Total rebilled freight
  • Total accessorial charges
  • Spend by accessorial charges

Interested? Let’s chat. 

Topics: Shipping Costs
Topics

Check out related resources at Sifted.

Parcel Carrier Diversification 101

Parcel Carrier Diversification 101

Last mile delivery has never been more important to businesses. In 2023, the global last mile delivery market was ...
Read More
RILA LINK 2024 Recap: The Cutting-Edge of Retail Supply Chains

RILA LINK 2024 Recap: The Cutting-Edge of Retail Supply Chains

At the end of February, supply chain leaders from the nation’s largest retailers converged in Dallas for the ...
Read More
Sifted’s Caleb Nelson Named 2024 “Pros to Know” Award Recipient

Sifted’s Caleb Nelson Named 2024 “Pros to Know” Award Recipient

KANSAS CITY, Missouri - Sifted, the trailblazer in Logistics Intelligence™ is proud to announce that Caleb Nelson, ...
Read More
Meet Sifted at LINK 2024

Meet Sifted at LINK 2024

At the end of February, the top supply chain leaders from some of the nation’s largest retailers will converge in ...
Read More
Parcel Carrier Comparison Guide

Parcel Carrier Comparison Guide

In the intricate landscape of parcel shipping today, shippers navigate a complex web of carriers, each with its ...
Read More
Amazon Shipping, Seller Fulfilled Prime, and More: Matt Snyder’s Insights and Advice to Sellers in 2024

Amazon Shipping, Seller Fulfilled Prime, and More: Matt Snyder’s Insights and Advice to Sellers in 2024

Amazon took the supply chain world by storm in 2023. They announced Amazon Shipping, a FedEx and UPS competitor ...
Read More
2024 Shipping Industry Outlook: Top Trends Driving Down Costs + How to Capitalize

2024 Shipping Industry Outlook: Top Trends Driving Down Costs + How to Capitalize

Over the last few years, soaring shipping costs, unpredictable rate hikes, and a challenging logistical landscape ...
Read More
Sifted Celebrates Achievement as 2023 Top Tech Startup by Food Logistics, Supply & Demand Chain Executive

Sifted Celebrates Achievement as 2023 Top Tech Startup by Food Logistics, Supply & Demand Chain Executive

Kansas City, Mo – Sifted, a leader in Logistics Intelligence, has been recognized as a 2023 Top Tech Startup by ...
Read More
11/27/23 Parcel News Update

11/27/23 Parcel News Update

1. Amazon’s Volumes Surpass FedEx and UPS Amazon delivered more parcels in 2022 than UPS, according to internal ...
Read More
11/20/23 Parcel News Update

11/20/23 Parcel News Update

1. USPS Announces Tentative Rate Increases for 2024 The United States Postal Service has announced rate increases ...
Read More
11/13/23 Parcel News Update

11/13/23 Parcel News Update

1. Experts Share Attention-Grabbing Items from 2024 GRIs Supply Chain Dive interviewed industry experts, including ...
Read More
2023 Holiday Shipping Deadlines

2023 Holiday Shipping Deadlines

It’s the most wonderful time of the year? It will be if your customers receive their orders on time. The major ...
Read More

Are you an FBM (fulfillment by merchant) Amazon seller?

Check out our Marketplace Intelligence solutions to protect your bottom line.

Shipping Insights & Alerts
Get updates and track the things impacting your business most

Decision Support
See how supply chain adjustments pay off before you pay out

Carrier Management
Streamline how you manage your carrier operations and contracts

Business Automation
Let software do what it does better than people can

Seller Insights
Measure and monitor with confidence.

Sales Visualization
Shed new light on your sales data.

Fee Analyzer
Understand the impact of ever-changing FBA fees.

FBA Audit & Recovery
Secure money you’re owed from Amazon.

Blog
Discover news, tips, and industry best practices

DIM Weight Calculator
See how DIM is impacting you

Podcast
Hear from industry experts on LeaderShipping

Case Studies
Learn how other brands use
Logistics Intelligence

Carbon Calculator
Calculate your CO2 Emissions

Thought Leaders
Meet the people behind the technology

Guides
Download free reports and expert how-tos

Demo
Get a personalized tour of our software

About Sifted
Get to know Logistics Intelligence

Logistics Intelligence
For parcel shippers

Marketplace Intelligence
For Amazon FBA sellers

Let's get you to the right place!

SIFTED DASHBOARDS
For parcel shippers

AMAZON Marketplace Intelligence

Not sure if you have an account? Email [email protected].