Less than truckload (LTL) carriers transport freight shipments between 100 and 15,000 pounds by consolidating multiple shippers’ cargo on a single truck, reducing per-pound transportation costs compared to full truckload shipping. The U.S. LTL market reached $114.03 billion in 2025 and is projected to grow to $139.63 billion by 2030 at a 4.13% compound annual growth rate. With major rate increases of 5-8% implemented across carriers in 2025 and significant NMFC classification changes affecting 40% of shipped products, understanding how LTL pricing works and where to find cost savings has become critical for businesses shipping freight regularly.
Less than truckload carriers give businesses a practical way to move freight that is too large for parcel shipping but too small to fill a full truck. By consolidating multiple shippers on one trailer, less than truckload carriers spread costs and lower the per-pound price. Understanding how less than truckload carriers set rates is the key to finding real savings.
The guide below explains how to compare less than truckload carriers, prepare freight correctly, and avoid the reclassification fees that quietly inflate invoices.
For more information, see our complete guide: ltl carriers.
For more information, see our complete guide: LTL Logistics and Freight.
For more information, see our complete guide: LTL Logistics and Freight.
For more information, see our complete guide: LTL Logistics and Freight.
Q: How much do LTL carriers charge in 2025-2026? → A: Average per-pound rates vary for Class 100 freight traveling 500 miles, with major carriers implementing 5-8% general rate increases in 2025.
What Are Less Than Truckload Carriers and How Do They Work?
Less than truckload (LTL) carriers specialize in transporting freight shipments that don’t require the full capacity of a truck trailer (typically under 15,000 pounds or fewer than 10 pallets). Unlike full truckload (FTL) shipping where you pay for an entire truck regardless of space used, LTL carriers consolidate multiple shippers’ freight onto one vehicle, allowing each shipper to pay only for their portion of the transportation cost.
LTL carriers operate through a hub-and-spoke network where freight is picked up from individual shippers, consolidated at regional terminals, transported to destination terminals, then delivered to final recipients. This consolidation model reduces handling compared to parcel shipping while maintaining cost efficiency for mid-sized freight shipments. To understand the broader landscape of shipping carriers and general services, it’s important to consider how LTL fits into your overall transportation strategy.
Key Differences: LTL vs FTL vs Parcel Shipping
| Shipping Method | Best For | Weight Range | Cost Range (500 miles) | Transit Time |
|---|---|---|---|---|
| LTL Carriers | 1-9 pallets, business-to-business | 100-15,000 lbs | Varies by class | 2-4 days standard |
| FTL Carriers | Full truck loads, dedicated service | 15,000+ lbs | Varies | 1-2 days direct |
| Parcel (UPS/USPS/FedEx) | Small packages, residential delivery | Under 100 lbs | Varies | 1-5 days |
Why Do Businesses Choose LTL Carriers Over Other Shipping Methods?
LTL carriers offer the optimal balance of cost, service, and flexibility for mid-sized freight shipments. Here’s why businesses across manufacturing, retail, and e-commerce rely on LTL shipping:
Cost Efficiency Through Shared Transportation
By consolidating freight from multiple shippers, LTL carriers reduce per-pound costs significantly compared to dedicated FTL service. A 5,000-pound shipment that might cost more via FTL could ship for less via LTL, depending on freight class and destination.
Flexible Shipment Sizing
LTL accommodates any shipment between 100 and 15,000 pounds, making it ideal for businesses that don’t generate full truckloads regularly. Whether shipping one pallet or nine pallets, LTL provides consistent service without requiring minimum volume commitments.
Reduced Handling and Damage Risk
LTL shipments experience less handling than parcel shipments, which pass through multiple sorting facilities. Freight is consolidated at origin terminals, transported directly to destination terminals, then delivered—reducing damage risk for valuable or fragile products.
Mini Q&A:
Q: When should I use LTL instead of parcel shipping?
A: Choose LTL for shipments over 100 pounds, multiple pallets, or when shipping to commercial addresses where a loading dock or forklift is available.
How Much Do LTL Carriers Charge in 2025-2026?
LTL pricing has remained firm through 2025 despite softer freight volumes, as carriers implemented significant general rate increases (GRIs) and maintained pricing discipline in a capacity-constrained market. Understanding best LTL rates for your shipping needs requires comparing multiple carriers and optimizing your freight class.
2025 General Rate Increase (GRI) Summary
| LTL Carrier | 2025 GRI Percentage | Implementation | Market Position |
|---|---|---|---|
| ABF Freight System | 5.9% | January 2025 | National carrier with union workforce |
| FedEx Freight | 5.9% | January 2025 | Separating as independent company June 2026 |
| Saia Inc. | 7.9% | January 2025 | Regional carrier with aggressive expansion |
| Old Dominion Freight Line | 4.9% | January 2025 | Premium service provider with conservative pricing |
Current LTL Rate Benchmarks
For a typical Class 100 shipment (packaged goods) traveling 500 miles, average 2025 LTL rates range from Varies by class. A 2,000-pound shipment’s total varies with the specific carrier, lane, and service requirements.
The long-distance LTL producer price index (PPI) reached 435.205 in May 2025, representing a 5.4% increase from May 2024—marking eight consecutive quarters of year-over-year pricing growth, according to the Bureau of Labor Statistics.
What Changed with the July 2025 NMFC Classification Overhaul?
The National Motor Freight Classification (NMFC) underwent its most significant overhaul in decades in July 2025, fundamentally changing how LTL carriers assign freight classes and calculate rates. This change affects over 40% of products shipped via LTL and directly impacts shipping costs. For businesses wondering about LTL acronym meaning, understanding these classification changes is essential for accurate freight planning.
How the New Density-Based System Works
The updated NMFC now uses an expanded density scale where freight class is determined primarily by pounds per cubic foot rather than the previous four-factor system (density, stowability, handling, and liability).
- High-density shipments (50+ lbs/cubic foot) now cost approximately 50% less than under the old classification system
- Low-density shipments can see cost increases up to 97% for the lightest, least dense goods
- Accurate dimensioning is critical — length, width, and height measurements directly determine your freight class and final rate
What This Means for Different Product Types
Winners (Lower Costs): Dense products like machinery, automotive parts, textbooks, electronics, and metal components benefit from significantly reduced rates.
Higher Costs: Light, bulky items like furniture, packaging materials, insulation, and empty containers face substantial rate increases. If you need to ship furniture on Etsy, these density-based pricing changes significantly impact your shipping strategy.
Optimization Strategy: Maximize packaging density by eliminating void space, using smaller boxes, and consolidating multiple items per shipment when possible.
Mini Q&A:
Q: How can I reduce costs under the new NMFC system?
A: Focus on packaging density—eliminate void space, use appropriately-sized boxes, and consolidate shipments. Every cubic foot of space affects your freight class and final rate.
Who Are the Major LTL Carriers in 2025-2026?
The LTL industry has consolidated significantly following Yellow Corporation’s bankruptcy in August 2024, which eliminated 8-10% of domestic LTL capacity. The top 10 carriers now control 60-70% of market share, compared to less than 10% concentration in the full truckload segment.
Leading LTL Carriers and Recent Developments
| Carrier Name | Service Coverage | 2025-2026 Key Development | Market Focus |
|---|---|---|---|
| FedEx Freight | National | Separating as independent company effective June 1, 2026 | Comprehensive LTL and specialty services |
| XPO Logistics | National | Expanded capacity through Yellow asset acquisitions | Technology-focused logistics solutions |
| ABF Freight System | National | Maintained pricing discipline with 5.9% GRI | Union workforce with comprehensive coverage |
| Old Dominion Freight Line | National (expanding west) | Conservative 4.9% GRI; strong service recovery | Premium service with high on-time performance |
| Saia Inc. | Regional (Southeast/Southwest) | Aggressive 7.9% GRI; continued expansion | Regional expertise with national aspirations |
| Estes Express Lines | Multi-regional | Acquired 939 Yellow doors across nine states | Regional coverage with selective national lanes |
| R&L Carriers | Multi-regional | Secured 304-door New York facility from Yellow | Northeast and Midwest focus |
| Amazon Freight (LTL) | U.S. nationwide | Launched LTL service April 2025 with self-service portal | Inbound freight to Amazon fulfillment centers |
Capacity Constraints Continue
Despite multiple acquisition rounds following Yellow’s bankruptcy, only approximately 60% of that lost capacity is expected to return by 2026. This tight capacity environment supports carriers’ pricing discipline and reduces pressure for aggressive rate competition.
How Do LTL Carriers Calculate Rates and Pricing?
LTL freight pricing uses a multi-variable formula that accounts for freight class, weight, distance, density, service speed, and accessorial charges. Unlike simple per-pound pricing, LTL rates reflect the true cost of handling and transporting different types of freight.
Core LTL Pricing Variables
- Freight Class (50-400): Assigned by NMFC based on density; higher classes cost more per pound
- Actual Weight: Certified scale weight of the shipment
- Density (lbs/cubic foot): Primary determinant of freight class under new July 2025 NMFC rules
- Distance/Lane: Origin-destination pair; longer distances often have lower per-mile rates
- Service Level: Standard LTL (2-4 days) vs. priority or guaranteed services
- Pickup/Delivery Location: Commercial vs. residential; dock vs. non-dock locations
- Fuel Surcharge: Fluctuates monthly based on diesel prices (typically 2-8% of base rate)
- Accessorial Charges: Special services like lift gate, inside delivery, or hazmat handling
AI-Powered Pricing Systems
Modern LTL carriers deploy sophisticated AI-powered pricing systems that analyze historical shipping data, lane profitability, fuel costs, and capacity utilization to optimize rates. These advanced systems allow carriers to price more precisely than ever before, reducing the likelihood of dramatic rate swings while maintaining profitability on specific lanes.
Mini Q&A:
Q: What are accessorial charges and how much do they add?
A: Accessorial charges cover special services like lift gate, inside delivery, or residential delivery. These can add 10-30% to your base freight rate.
How PalletPath Helps You Save on LTL Shipping Costs
With LTL rates increasing 5-8% across major carriers in 2025 and the NMFC classification changes affecting pricing for 40% of products, finding discounted LTL rates has become essential for controlling shipping costs. PalletPath, the LTL freight division of ParcelPath, provides access to negotiated discounted rates from major carriers while simplifying the quoting and booking process. Learning about less than truckload shipping and how it compares to other freight options can help you determine the most cost-effective solution.
Key PalletPath Benefits for LTL Shippers
- Compare real-time quotes from multiple LTL carriers side-by-side
- Access pre-negotiated discounts unavailable to individual shippers
- Integrate customer address databases for faster repeat quoting
- Obtain comprehensive freight insurance at reduced costs through Shipsurance
- Get expert support from freight professionals with over 150 years of combined LTL experience
- No subscription fees or minimum volume requirements—100% free platform
Since rate increases and classification changes are driving up LTL costs industry-wide, using a platform like PalletPath to secure discounted rates can offset much of the recent price inflation affecting LTL shippers. For additional cost-saving strategies, explore our miscellaneous shipping tips to save money in 2026.
What’s Next for LTL Carriers in 2026?
Industry forecasts for 2026 indicate continued rate strength despite modest volume challenges, with several major developments expected to shape the LTL marketplace.
2026 Volume and Pricing Forecast
LTL tonnage is expected to remain slightly negative year-over-year in the first half of 2026, with recovery beginning in the second half as economic conditions improve. Despite softer volumes, mid-single-digit rate increases (approximately 5% average) are expected, consistent with the nearly 5% year-over-year average growth in the LTL Producer Price Index over the past three decades.
Major Industry Changes Coming in 2026
- FedEx Freight Independence (June 1, 2026): FedEx Freight will complete its separation as an independent company while maintaining coordination with other FedEx business units
- Yellow Capacity Recovery: Regional carriers integrating Yellow’s acquired terminals will increase capacity availability in specific regions by late 2026
- Amazon LTL Expansion: Amazon’s LTL service launched in April 2025 may expand capabilities, though industry analysts remain skeptical about national LTL carrier ambitions
- Enhanced AI Pricing Models: Expect more sophisticated pricing systems that make rates more precise but potentially harder to negotiate
Frequently Asked Questions About LTL Carriers
How are LTL freight classes determined under the new NMFC system?
Since July 2025, freight classes are determined primarily by density (weight per cubic foot) using an expanded scale from Class 50 (densest) to Class 400 (least dense). Your freight is measured and weighed to calculate density, which directly determines your freight class and base LTL rate.
What are typical accessorial charges for LTL shipments?
Common LTL accessorial charges include lift gate service, inside delivery, residential delivery surcharges, and hazmat handling fees. These accessorials can add 10-30% to your base freight rate, so always ask carriers about applicable charges when requesting quotes.
How much does LTL shipping cost for a typical business shipment in 2025?
For a 2,000-pound Class 100 shipment traveling 500 miles, expect a rate that varies by distance, weight, and accessorials using major LTL carriers with 2025 rates. Dense shipments cost less per pound under the new NMFC system, while light, bulky items cost significantly more.
Is LTL cheaper than FTL for smaller freight shipments?
For shipments under 10,000 pounds or fewer than 8 pallets, LTL is typically cheaper than FTL because you pay only for the space your freight occupies. FTL becomes cost-effective when your shipment weight or pallet count justifies the flat rate (usually 15,000+ pounds).
How did the July 2025 NMFC changes affect LTL shipping costs?
The NMFC overhaul shifted pricing based on freight density. High-density items (over 50 lbs/cubic foot) now cost approximately 50% less, while low-density items can cost up to 97% more. Proper packaging and dimensioning are now critical for controlling LTL costs.
Which LTL carrier offers the cheapest rates?
LTL pricing varies significantly by lane, weight, class, and current capacity. FedEx Freight and ABF are often competitive nationally, while regional carriers like Old Dominion and Saia excel on specific lanes. Always compare quotes from multiple carriers or use a platform like PalletPath to automate the comparison process.
