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Shipping Basics

LTL Shipping for Small Business: A Getting-Started Guide

New to LTL freight? This guide walks small businesses through everything from knowing when to switch from parcel to getting your first shipment out the door.

LTL Shipping for Small Business: A Getting-Started Guide
Rachel TorresRachel TorresMar 11, 2024

You’ve been shipping everything via UPS or FedEx, and it’s been fine. But lately, you’re sending 8 boxes to the same customer and paying $45 each. That’s $360 for what could fit on a single pallet. There has to be a better way.

There is. It’s called LTL freight, and it’s not just for big companies.

When parcel stops making sense

The tipping point between parcel and LTL is roughly 150 pounds to a single destination. But it’s not just about weight. Here are the signs you should be looking at LTL:

You’re shipping multiple boxes to the same address. Five boxes at $40 each ($200 total) might cost $150-$250 as a single LTL pallet. The more boxes, the bigger the savings.

Your items are too heavy or large for parcel. UPS and FedEx have size and weight limits (typically 150 lbs and 108” length per package). If you’re splitting shipments to fit parcel limits, you’re overpaying.

You’re shipping palletized goods. If your products are already on pallets, LTL is the natural choice. Parcel carriers aren’t designed for pallet-scale freight.

Your shipping costs are climbing. Parcel carriers have been raising rates 5-10% annually. LTL rates for comparable weights are often 30-50% less than shipping the same goods as individual parcels.

What you need to get started

Getting into LTL shipping doesn’t require a big investment. Here’s the minimum:

Pallets

Standard pallets are 48” x 40” and can be found at most hardware stores, industrial suppliers, or even free from local businesses that receive pallet deliveries. New pallets cost $10-$25 each. Used ones are often free.

Avoid pallets that are cracked, warped, or have broken deck boards. Carriers can refuse freight on damaged pallets.

Stretch wrap

A roll of stretch wrap costs $15-$25 and is essential for securing your goods to the pallet. Wrap at least 3-4 layers around the load and make sure the wrap extends below the top deck boards of the pallet to anchor everything together.

A scale

You need to know your shipment weight accurately. Bathroom scales work in a pinch (weigh yourself, then weigh yourself holding the item), but a floor scale ($200-$500) pays for itself quickly by avoiding reweigh charges.

A tape measure

Carriers need dimensions: length, width, and height of the palletized shipment. Always measure the full footprint including any overhang, and measure to the top of the highest point.

No loading dock required

If you don’t have a loading dock, request liftgate service when you book. The carrier’s truck has a hydraulic platform that raises and lowers freight to ground level. It adds $75-$150 to your cost, but it means you can ship from a garage, storefront, or any ground-level location.

Your first LTL shipment, step by step

Step 1: Know your shipment details

Before getting quotes, gather this information:

  • Pickup address (including whether you have a dock)
  • Delivery address (and whether the receiver has a dock)
  • Total weight of the palletized shipment
  • Dimensions of each pallet (L x W x H in inches)
  • What you’re shipping (product description, not just “goods”)
  • Special requirements (liftgate, residential, appointment, etc.)

Step 2: Determine your freight class

Freight class (50-500) is based on your product’s density and characteristics. The easiest way to determine it:

  1. Calculate density: Total weight / Total cubic feet
  2. Use a freight class calculator or look up your product in the NMFC database

For most small business products:

  • Dense, heavy items (metal parts, tile): Class 50-85
  • Medium density (small appliances, packaged food): Class 85-125
  • Light, bulky items (furniture, electronics): Class 125-200

When in doubt, go with a slightly higher class. The few extra dollars beats a reclassification penalty.

Step 3: Get quotes

Enter your shipment details into a freight quoting platform. You’ll see rates from multiple carriers with different prices and transit times. Look at both, not just the cheapest rate. A carrier with a 2-day transit might be worth $30 more than one with a 5-day transit.

Step 4: Book and prepare

Select your carrier and pickup date. You’ll receive a Bill of Lading (BOL) with all the shipment details. Print it out.

Prepare your freight:

  • Stack boxes securely on the pallet (heaviest on bottom)
  • Keep everything within the pallet edges (no overhang)
  • Stretch wrap thoroughly
  • Label the outside with shipper and consignee info

Step 5: Pickup day

The carrier will arrive during a pickup window (usually a 4-6 hour range). Have your freight ready and the BOL printed. The driver will:

  1. Inspect the freight visually
  2. Load it onto the truck
  3. Sign the BOL
  4. Give you a copy

Note any existing damage on the BOL before the driver leaves. Once the driver signs for the freight in good condition, damage claims become your problem.

Step 6: Track and receive

Use the PRO number to track your shipment. At delivery, the receiver should:

  1. Inspect the freight before signing
  2. Note any visible damage on the delivery receipt
  3. Count pieces to match the BOL

If there’s damage, note it specifically (“dented corner, crushed box 3 of 5”) rather than just writing “damaged.” This documentation is critical for claims.

Common first-timer concerns

“What if I don’t ship enough for carriers to care about me?” You don’t need volume to use LTL. Carriers pick up single pallets every day. Freight platforms like FreightSimple give you access to carrier rates without needing a direct account or volume commitment.

“What if the carrier damages my freight?” Carriers are liable for freight damage under the Carmack Amendment. Document everything, file a claim promptly, and you’ll be compensated. That said, good packaging prevents most issues.

“Can I ship to residential addresses?” Yes, with a residential delivery accessorial ($75-$125). You’ll also likely need liftgate service. These costs are additional but still often cheaper than parcel for heavier shipments.

“How do I get a carrier account?” You don’t need one. FreightSimple provides access to 100+ carriers without requiring individual accounts, negotiations, or minimum volume commitments.

How FreightSimple helps small businesses

FreightSimple was built for companies at every scale. No minimum shipment requirements. No contracts. Just instant access to competitive LTL rates from 100+ carriers, with guaranteed pricing and real-time tracking.

Get your first LTL quote in minutes.

Frequently Asked Questions

When should a small business switch from parcel to LTL?

Switch to LTL when your shipments regularly exceed 150 pounds or when you're shipping more than 4-5 boxes to the same destination. The crossover point is usually when parcel costs for multiple boxes exceed the cost of palletizing those same boxes and shipping them as a single LTL shipment. For many businesses, this happens around the 150-200 pound mark.

Do I need a loading dock for LTL shipping?

No. If you don't have a loading dock, you can request liftgate service. The carrier's truck has a hydraulic platform that lowers freight to ground level. Liftgate service adds $75-$150 to your shipment cost, but it means any location can ship or receive LTL freight.