LTL is used when a shipper has more than a parcel shipment, but less than a full truckload.
The threshold for an LTL shipment is considered anything over 150 pounds.
To paint a picture of LTL operations, motor freight carriers consolidate several LTL shipments from various shippers into one truckload and move it through their hub-and-spoke network to pick-up the freight at origin and deliver it to its final destination.
In some cases, shippers operate a sophisticatedtransportation management systemto consolidate their own LTL shipments into a single truckload to generate savings versus utilizing an LTL provider for each shipment. Such a program is calledLTL consolidation.