Shipper | Best practices
How to compare less-than-truckload (LTL) carriers
Finding the right less-than-truckload (LTL) carriers to deliver your goods is essential – but not easy. Start by knowing the key similarities and differences across carrier types so you can choose the best fit.
Key takeaways:
- Regional, national and consolidator carriers each serve different geographies and priorities – speed, reach, or cost.
- Direct shipping offers more control and less handling, while interlining lowers cost but increases touchpoints and potential for damage.
- The best option comes down to tradeoffs between cost, service, and capacity based on your specific shipping needs.
Types of LTL carriers
The type of carrier you need depends largely on your shipping origins and destinations. This will determine whether a regional carrier, national carrier or consolidator can haul your freight where it needs to go.
- Regional LTL carrier: Ships only to a certain region (e.g., the Midwest). Regional carriers tend to have a high density, or a larger number of trucks, in their region. For this reason, regional carriers typically have the quickest overnight shipping services.
- National LTL carrier: Serves the entire United States and may even provide cross-border shipping to Canada and Mexico. National carriers provide linehaul between regions and tend to offer more direct lanes with less interchange to destinations than other types of carriers.
- Consolidator: Operates on a spoke-and-hub system, meaning all LTL shipments are initially brought back to the same single hub point. Once enough freight accumulates for a full truckload shipment, the freight is shipped to its destinations. With a consolidator, shipments will likely spend more time in transit than with other types of carriers. There is less control of the delivery time, and these types of carries tend to be less costly than others.
Direct freight vs. interlined
Another aspect to consider when choosing an LTL carrier is whether you would prefer your freight shipped direct or interlined.
- Direct: only one carrier will come into contact with your freight
- Interlined: freight may come into contact with multiple carriers
An example of interlined freight is when one regional carrier hauls the freight through the Midwest and then passes it on to another regional carrier who will deliver the freight to its Northeast destination. Interlining typically costs less than direct shipping, but there is more opportunity for high-value or extremely fragile freight to be damaged or stolen when moving between carriers.
Choosing the right LTL carrier
Selecting the right carrier depends on finding the appropriate balance between these three factors:
- Cost
- Service
- Capacity
Learn more about our LTL service and read proof-positive business case studies at our less-than-truckload services page or use the link below to begin a conversation with an experienced expert today.
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