ArcBest : The Benefits of Shipping LTL Compared to Parcel

LTL vs. parcel - which is the better option?

In today's industry, the line between parcel and LTL is sometimes blurry. Freight that used to be more economical to ship via parcel is now sometimes better suited for LTL and vice versa. So, how do you decide which method is best to use when your products could ship either way? Several details should be considered when choosing a solution - take a look at how each shipping method works, and learn why LTL can be the better option for your business.

What is a parcel shipment?

Parcel packages are small, individual shipments. They usually weigh 100 pounds or less and are easily lifted by a single person rather than a forklift. Postal businesses and private courier companies usually handle parcel deliveries.

What is an LTL shipment?

Less-than-truckload freight is generally too large to ship parcel, but not large enough to fill a 53-foot trailer. It includes products that are bulky, heavy, oddly shaped, palletized or boxed. These shipments typically weigh between 90 to 10,000 pounds, but some carriers transport up to 20,000 pounds. Because the freight is heavier than a parcel, a forklift is often used to maneuver it from the dock into the trailer.

In some cases, LTL freight can include shipments that weigh less than 90 pounds, depending on the product's characteristics. For example, a long product like a beach umbrella may ship better LTL. Though it's lightweight (less than 20 pounds) its length may keep it from being suited well for parcel.

Which shipping method do I need?

The 100-pound threshold used to be the deciding factor. But, as carriers continue to broaden their services, the line between the two is becoming more blurred. Now, shippers prefer whichever method makes the most financial sense and keeps the customer happy, regardless of the product's size and weight.

Generally, once a parcel shipment exceeds a certain number of packages and weight, LTL is the most cost-efficient way to ship. For example, if you need to get three small, individual packages from Los Angeles to New York by next day, shipping parcel may make the most sense. But, if you need to ship 10 large boxes that total 250 pounds from Los Angeles to Dallas within five days, LTL is typically the better option.

When choosing between LTL and parcel, consider these questions:

• What is the product?
  Let's say you're shipping textbooks to a school. If you're shipping only a few, choose parcel. If you're shipping enough to fill an entire box or pallet, LTL is best.
• What is the size and weight?
  Parcel packages usually weigh 100 pounds or less, and are typically 165' in length and girth combined, and up to 108' in length. LTL freight usually weighs between 90 and 20,000 pounds, and is typically taller and wider than 42 inches (view this chart for standard LTL pallet sizes).
• How many pieces are there?
  This one depends on the factors in the question above. In some cases, even if you're shipping a single piece, it can be best to use LTL. Talk with your carrier to decide which method is best based on the number of pieces you have.
• What is my customer's need and demand?
  Let's say a retailer needs to overnight a pair of shoes to a customer who received the wrong size. Parcel would be the best option. The same retailer also needs to ship 80 pairs of shoes to restock their store for Black Friday in two weeks. In this case, LTL shipping allows for plenty of time and space to safely deliver the order.

The benefits of LTL compared to parcel

If there's not a clear answer, and your freight could move either LTL or parcel, consider these LTL benefits:

Careful handling

Parcel packages are typically auto sorted on a conveyor belt where they could slide and shuffle before being loaded onto the trailer. This way of sorting tends to put stress on packages and their contents and could put more sensitive freight at risk for damage.

With LTL, individual packages are palletized and shrink-wrapped or boxed. Once they're ready for transit, they're moved and loaded onto the trailer using a forklift. This method of packaging and maneuvering is often easier on products and helps reduce the likelihood of damage.

Less handling

Studies have shown that reduced handling lowers the chances of lost, damaged and delayed freight. LTL shipments normally experience less handling than parcel shipments. With parcel, packages are often consolidated, deconsolidated and transferred from truck to truck up to the point of delivery. Freight that is moved LTL is loaded on one trailer and travels on that trailer until it reaches a distribution center, the delivery service center or a fulfillment center where it's broken down into the original order and put on a truck for local delivery.

Regular shipping routes

LTL is often the best solution for businesses that regularly ship similar items to the same location, even if the freight is small and light. Combining like shipments into one bundle and sending them out each week is normally more cost-efficient and environmentally friendly - reducing cost per package and lowering carbon emissions.

Zone skipping options

Zone skipping is a technique LTL carriers can offer that helps reduce shipping costs, transit times and handling/transfers. It works like this: the shipper consolidates individual orders to fill an entire trailer heading to the same destination. The shipment travels from one major shipping zone to another, without stopping to unload or reload along the way. Once the driver reaches the destination region, the packages are deconsolidated and ready for the local delivery carrier to pick up for distribution.

Flexible delivery options

It's a common misconception that LTL carriers only deliver to facilities with loading docks. In fact, many LTL carriers, including ArcBest® carrier ABF Freight®, offer flexible options for business and residential delivery. Customers can choose from an array of final-mile solutions - from curbside drop off to product placement and assembly. While delivery for parcel service typically ends at the entrance, these additional LTL services allow customers to choose the best delivery method for their freight.

Need help determining whether LTL or parcel is right for you?

The customer solutions team at ArcBest can review your shipment profile to determine the most efficient shipping methods for your freight. Call 800-610-5544 for more information.