What's the difference between FTL and LTL?

When it comes to logistics, there are two main types of transportation services: Full Truck Load (FTL) and Less Than Truck Load (LTL). FTL refers to shipments that fill an entire truck, while LTL refers to shipments that don't fill the entire truck and are often consolidated with other shipments to fill the truck. Understanding the difference between these two types of transportation services is important for anyone involved in logistics, as it can impact the cost, delivery time, and reliability of shipments.

Less Than Truck Load (LTL) shipping

LTL shipping is a good option for businesses that do not need to fill an entire truck with their shipments or have smaller shipments that need to be transported more frequently.

What are the advantages of LTL?

One of the main advantages of LTL shipping is its cost-effectiveness. Because LTL shipments are consolidated with other shipments, the cost of transportation is shared among multiple customers. This can make LTL shipping a more affordable option for businesses that don't need to fill an entire truck with their shipments. Also, LTL shipping can be more flexible than FTL shipping, as it allows businesses to ship smaller quantities of goods and in a more agile way, which can be beneficial for businesses with fluctuating demand.

Another advantage of LTL is that LTL carriers have access to specialised equipment and resources, such as lift gates, pallet jacks, and forklifts, that can help with loading and unloading shipments. This can be especially important for businesses that do not have the equipment or resources to handle large or heavy shipments.

What are the disadvantages of LTL?

There are also some disadvantages to LTL shipping. Because shipments are consolidated with other shipments, delivery times can be longer than with FTL shipping as multiple stops have to be made. Moreover, there is limited control over deliveries as the carrier determines the pickup and delivery times and the route that the driver should take to reach the destination.

Furthermore, there is a higher risk of damage or loss of goods in LTL shipping, as multiple shipments are being transported in the same truck and goods could be jostled or shifted during transportation. As well as this, there is going to be more handling of goods in an LTL shipment which could result in mishandling, especially with brittle items. This is why EPOD is so important in LTL shipping - it provides a way to track and verify that each shipment has been delivered to the correct location in good condition.

How does EPOD work with LTL?

One key aspect of LTL shipping is the importance of electronic proof of delivery (EPOD). EPOD is a digital record of delivery that captures important information such as the time and location of delivery, the recipient's signature, and any comments or notes. This information is crucial for ensuring that the truck carrying multiple deliveries delivers the right things to the right place, at the right time.

Here's how EPOD works with LTL:

1. Delivery Information Captured: The carrier captures delivery information that can then be shared with the client. This includes the time, date, and location of delivery, as well as any special delivery instructions and notes, all stored in the EPOD system. The driver can also take a photo of the delivered shipment, which provides additional proof of delivery.

2. Signature Capture: The recipient signs for the delivery electronically, either on a handheld device or through an online portal, which confirms that the shipment has been received and delivered to the correct location on the delivery route.

3. Real-Time Tracking: EPOD allows for real-time tracking of the delivery process, which enables the carrier to monitor the shipment's progress, where they are on the drop list, and ensure that each delivery is on time.

4. Automated Notification: EPOD can automatically notify the shipper and consignee when the shipment has been delivered, providing them with the necessary documentation to confirm delivery and payment.

5. Streamlined Documentation: EPOD eliminates the need for paper-based documentation, such as bills of lading or delivery receipts, which can help to reduce paperwork and streamline the documentation process, especially amongst multiple clients. This can help to save time, reduce errors, and improve overall efficiency.

Without EPOD, it can be difficult to track deliveries and ensure that each shipment is delivered to the correct location, making LTL and EPOD a vital partnership.  

Full Truck Load (FTL) shipping

Ideal for larger shipments, FTL shipping also has its advantages and disadvantages and can work well for businesses with time-sensitive deliveries, or high-value and fragile goods that require special handling.

What are the advantages of FTL?

When compared to LTL, FTL has much faster transit times as there is only one shipment on the truck. This means that there is no need for multiple stops or additional handling. Similarly, FTL in logistics means the shipper has more control over the delivery process, therefore, they can specify the exact pickup and delivery times, as well as the route the driver should take to reach the destination.

For FTL, there is also less risk of damages and loss of goods. As there is only one shipment per truck, there is less chance of the goods being shifted or jostled during transport by other shipments. In addition, FTL involves less handling of the goods and therefore mishandling incidences are reduced, which is especially important for fragile or high-value shipments.

What are the disadvantages of FTL?

One of the biggest for many businesses is that, in contrast to LTL, there is a higher cost as the shipper bears the entire cost of the truck, even if it’s not full. Similarly, FTL shipping may not be suitable for smaller shipments, as the cost of the truck may be too high for the size of the shipment.

Another disadvantage of FTL is that the shipping may not be as flexible as LTL shipping since the entire truck has to be reserved in advance, and changes to the shipment details may result in additional costs.

Can EPOD be used in FTL shipping?

Yes, EPOD can also be used in Full Truckload (FTL) shipping. In fact, EPOD is becoming increasingly popular in the transportation industry as a way to improve visibility, efficiency, and accuracy of delivery. While FTL shipments involve the transportation of a single shipment in a single truckload, EPOD can still be used to capture and record delivery information, such as the time, date, and location of delivery, as well as the signature of the recipient.

All of the information captured helps improve visibility with real-time tracking of the shipment which can help reduce delays, improve communication, and enhance overall customer satisfaction. In addition, with EPOD, the driver can scan barcodes or take photos of the shipment, which ensures that the right shipment is delivered to the right location. This increased accuracy can help to reduce the risk of lost or damaged shipments and improve the overall quality of service.  

How we can help?

In summary, while FTL and LTL shipping have their differences, the use of electronic proof of delivery (EPOD) is crucial in both FTL and LTL shipping to ensure that all shipments are delivered to the right place, at the right time. If you’re looking to introduce a new EPOD system for FTL and LTL shipping, or upgrade your current one, get in touch today. Our expert team will be more than happy to answer any questions you may have about our PODStar technology and its benefits.