Did you know that nearly 90% of Canada’s freight moves by truck, but choosing the wrong shipping method could cost your business thousands of dollars a year? If you’re shipping goods across Canada, the LTL vs. FTL shipping debate is crucial, should you pay for a full truckload or share space to save money?
The right choice depends on your shipment size, urgency, and budget. LTL (Less Than Truckload) is cost-effective for smaller loads, while FTL (Full Truckload) ensures faster, more secure deliveries. But what if there’s a smarter, more affordable way? In this guide, we’ll compare LTL vs. FTL shipping in Canada, helping you pick the best option and explore how intermodal rail shipping can reduce costs even further!
What is LTL Shipping?
Less Than Truckload (LTL) shipping is a cost-effective freight option designed for shipments that do not require a full truck. LTL consolidates multiple shipments from different shippers into a single truck, making it a budget-friendly alternative for businesses with smaller freight loads.
Key Features of LTL Shipping:
- Cost-Effective: You only pay for the portion of the truck space you use.
- Frequent Handling: Shipments may be loaded and unloaded multiple times at different terminals.
- Longer Transit Times: Because of multiple stops and consolidations, deliveries may take longer.
- Ideal for Small Shipments: Suitable for cargo typically ranging between 150 to 15,000 pounds.
How LTL Pricing Works
LTL shipping costs are calculated based on:
- Weight & Dimensions: Heavier and bulkier shipments cost more.
- Freight Class (NMFC Rating): The National Motor Freight Classification (NMFC) system categorizes goods based on their density, handling requirements, and liability risks.
- Distance: Longer shipping distances result in higher costs.
- Additional Services: Special requirements like liftgate delivery, residential service, or white-glove service can increase the price.
What is FTL Shipping?
Full Truckload (FTL) shipping is used for larger shipments that either require the entire truck space or demand exclusive use of the vehicle. This method is ideal for high-value or time-sensitive shipments that need to travel directly from the origin to the destination.
Key Features of FTL Shipping:
- Faster Transit Times: Shipments move directly from the pickup location to the delivery point without multiple stops.
- Higher Cost: Since you’re renting the entire truck, the cost is generally higher compared to LTL.
- Safer for Fragile Goods: Fewer touchpoints mean reduced chances of damage.
- Best for Large Shipments: Typically used for cargo over 15,000 pounds or more than 10 pallets.
How FTL Pricing Works
FTL shipping costs are determined by:
- Distance: The longer the route, the higher the price.
- Truck Availability: Seasonal demand can impact rates.
- Special Equipment Needs: Refrigerated trucks or flatbeds can increase costs.
- Fuel Prices: Fluctuations in fuel prices directly affect FTL shipping costs.
LTL vs FTL Shipping in Canada: A Detailed Comparison
Choosing between LTL and FTL shipping in Canada isn’t just about cost—it affects delivery speed, cargo security, and overall logistics efficiency. Whether you’re a small business shipping a few pallets or a large enterprise moving full truckloads, understanding the differences can help you make smarter, budget-friendly shipping decisions.
Let’s break down the key factors that set these two freight options apart.
| Feature | LTL Shipping | FTL Shipping |
| Shipment Size & Weight | Ideal for loads between 150 and 15,000 pounds, with up to 10 pallets. | Best for shipments over 15,000 pounds or that require a full trailer. |
| Handling & Fragility | More handling due to multiple stops increases the risk of damage. | Less handling, reducing the chances of damage to fragile or high-value goods. |
| Speed & Delivery Time | Longer transit times due to multiple stops and terminal transfers. | Faster deliveries with a direct route and no unnecessary stops. |
| Cost Efficiency | Lower costs since multiple shippers share the truck space. | Higher costs, but can be more economical for large shipments. |
| Security & Risk | Increased handling can lead to a higher risk of damage or loss. | Safer transport with minimal handling, reducing damage and theft risks. |
| Flexibility | More frequent shipping schedules are available, but they are subject to space availability. | Fixed schedule with dedicated truck use, providing more control over delivery times. |
| Special Requirements | Offers additional services like liftgate, residential pickup, and temperature control. | Can accommodate specialized needs, but with fewer additional service options. |
When to Choose LTL or FTL?
Deciding between LTL and FTL shipping isn’t just about cost. It’s about balancing speed, security, and shipment size. If your freight is small, flexible on delivery times, and budget-conscious, LTL is the way to go.
But if you need faster transit, minimal handling, and dedicated space, FTL is the better choice.
Use LTL Shipping When:
- You are shipping less than 12 pallets.
- Your freight can handle multiple handlings during transit.
- Cost-saving is a priority over fast delivery.
- Your shipment isn’t time-sensitive.
Use FTL Shipping When:
- Your shipment is more than 15,000 pounds or requires a full trailer.
- You’re transporting fragile or high-value goods that require minimal handling.
- Your cargo needs to arrive quickly and securely with no delays.
- You require guaranteed pickup and delivery times.
Factors That Influence Your Decision
Choosing between LTL and FTL shipping in Canada isn’t just about cost. It’s about efficiency, speed, and security. Several factors, such as shipment size, urgency, fragility, and budget, play a crucial role in determining the best freight option.
Understanding these key considerations will help you avoid delays, reduce costs, and improve supply chain efficiency. Let’s break them down.
1. Shipment Volume & Frequency
- If your business ships large volumes frequently, FTL may be a more economical long-term choice.
- If you ship small quantities more often, LTL offers better savings.
2. Budget Constraints
- LTL is a cost-effective solution for smaller shipments.
- FTL may be more cost-efficient for larger shipments where renting an entire truck is justified.
3. Delivery Speed
- If fast delivery is critical, FTL is the better choice.
- If you can tolerate longer transit times, LTL can save money.
4. Cargo Fragility & Security
- High-value or fragile goods should use FTL for reduced handling.
- Standard shipments without security concerns can benefit from LTL
Integrating Intermodal Rail for Cost-Efficient Freight Shipping in Canada
While LTL and FTL are the primary trucking options, intermodal rail shipping offers an alternative that combines the best of both worlds. It ensures cost efficiency and reliability for long-haul freight shipping.
Intermodal shipping moves cargo using a combination of trucks and trains, allowing businesses to optimize costs while reducing their environmental footprint. Compared to FTL trucking, intermodal rail can be a more economical choice for shipments traveling long distances across Canada. It provides:
- Lower Costs for High-Volume Shipments – Rail transport is often cheaper per ton-mile than trucking for longer distances.
- Increased Capacity & Scalability – Ideal for businesses shipping large volumes that exceed standard truckload limits.
- Reliable Transit Times – Rail networks follow fixed schedules, making transit times predictable.
- Reduced Carbon Footprint – A more sustainable shipping option compared to long-haul trucking.
For businesses looking to optimize their freight costs, RailGateway provides efficient intermodal rail shipping services across Canada. Whether you need a cost-effective alternative to FTL or a hybrid solution that leverages rail and truck transport, we can help streamline your logistics.
Final Thoughts
Choosing between LTL and FTL shipping in Canada depends on your specific shipping needs, budget, and delivery timelines. By evaluating the size, weight, fragility, and urgency of your shipments, you can determine the most cost-effective and efficient solution.
Looking for the best LTL or FTL shipping rates? Work with a trusted freight provider to get competitive pricing and tailored shipping solutions. Request a quote today and optimize your logistics strategy!
Learn how RailGateway can reduce your shipping costs: Get a quote today!
FAQs
1. Which is cheaper: LTL or FTL?
LTL is generally cheaper for small shipments because costs are shared among multiple shippers. FTL is more cost-efficient for large shipments that fill an entire truck.
2. What’s the main difference between LTL and FTL?
LTL consolidates multiple shipments into one truck, making it cheaper but slower. FTL dedicates an entire truck to a single shipment, providing faster transit and better security.
3. Does LTL or FTL shipping offer better security?
FTL offers better security since the shipment isn’t handled multiple times. LTL has increased handling, which can lead to higher risks of damage or theft.
4. Can I switch between LTL and FTL based on my shipment size?
Yes! Many businesses use both options depending on their shipping needs. Smaller loads can go via LTL, while bulk shipments can be sent using FTL. By understanding these key differences, Canadian businesses can improve efficiency, cut shipping costs, and enhance logistics operations in 2025 and beyond.
