Less Than Truckload (LTL) is a term from the transportation industry. This term describes a shipment with insufficient volume to fill an entire truck. At the same time, the shipment is too large to go as a package. Therefore, carriers combine such shipments with other small loads from different shippers. In this way, they optimize the truck load. In addition, they reduce transportation costs by doing so.

Definition of Less Than Truckload (LTL): Less Than Truckload (LTL) refers to a freight shipment that is too small to fill an entire truck, but too large to ship as a package. Instead, it combines the load with other small shipments from different shippers. This makes more efficient use of truck space and saves costs.

Key aspects of Less Than Truckload (LTL):

• Consolidation: Combining multiple small shipments from different consignors into one truckload to reduce costs.
• Rate calculation: The rate for LTL shipments is usually calculated based on the weight, distance and classification of the goods.
• Terminal network: LTL carriers use an extensive network of terminals to consolidate, sort and distribute shipments.

Example of Less Than Truckload (LTL): A manufacturer in the Netherlands needs to ship a small load of electronic components. The customers are in different locations across Europe. The manufacturer finds that the shipments are too small to fill an entire truck. Therefore, he opts for consolidation. He bundles the shipments into one LTL shipment. An LTL carrier collects the shipment from the manufacturer. Then he takes it to the terminal point. There he merges the shipment with other small loads. Then he delivers the shipments to the final destinations.

For logistics companies such as Neele-Vat, this approach offers clear advantages. They offer LTL services for customers with regular, smaller shipments. By bundling shipments, they save costs. Moreover, they distribute loads efficiently. This creates a flexible and cost-effective solution. This provides more value for their customers.