FTL transit times are typically faster than LTL because the route is direct from the shipper to the consignee with no stops at terminals in between. LTL shipments stop and are handled at a variety of terminals during transit, increasing transit time. TL carriers usually have only a few terminals (also called operations centers). Some may not even have a terminal. Where there are terminals, even these do not have dock operations. Occasionally, TL carriers will have maintenance facilities scattered across the country or in their main regions of operations.
Costs and Pricing Models
FTL costs are lower than LTL. The price per pound drops significantly and actually is priced per mile, an economic concept known as the freight curve. There is also less likelihood of claims in FTL than LTL because there is less handling involved. However, FTL carriers have less equipment than LTL carriers, and greater cost fluctuations. When capacity is tight, the LTL network has a greater ability to handle customer loads. LTL carriers also have set pricing, and offer automated processing and a simpler shipping process.
