When requesting a road freight quote, you are likely to encounter three acronyms: FTL, LTL, and groupage. These are the three different ways in which freight can move via road transport, and choosing the wrong one is the main mistake that companies make when incurring unnecessary freight costs, or even failing to deliver on time. The following article will give an explanation of what each of them entails, their cost compared to each other, and the factors that determine which of them suits your particular case.
At Beyond Logistics, we provide all three options on a daily basis from our offices based in Birmingham, and our first question to any new customer is usually not “Where is it going?” but “How much are you sending and by when do you need it?” Those two answers always point to the right options.
What Is FTL (Full Truck Load)?
FTL road transport involves hiring an entire truck solely for carrying your cargo. The truck is either loaded fully or half-loaded, but all it will carry is your goods. It goes straight from your loading place to your delivery place according to your time frame.
FTL is the right choice when:
- The volume of your consignment takes up (or nearly takes up) an entire trailer, generally in the range of 10 to 26 pallets or 20+ cubic meters
- The delivery needs to be urgent and cannot include any depot breaks or multi-delivery routes
- The items being transported have significant value or are fragile/sensitive and require minimal handling; FTL freight is handled only one time during the loading and unloading process
- You require a specific pickup and delivery window, such as a scheduled appointment at a distribution center.
In exchange for the above conditions, you pay for the entire truck. For UK FTL road transport services, this is great value for money when you’re utilizing most of the load capacity, but costly when you only have three pallets in a 13.6m trailer.
What Is LTL (Less Than Truck Load)?
In the case of LTL road freight transport, your cargo will have to share space in the vehicle with consignments of other companies heading in a similar direction. You pay for the space used by your cargo alone and the carrier arranges a route which serves several customers in one go.
LTL is the right choice where:
- The size of your shipment is in between, typically 4 to 10 pallets, and it is not worthy enough to ship through a full load transport
- There is some leniency in delivery time as the truck has to make several stops on the way
- Cost is an important factor while speed is secondary with some consideration for direct routes with minimum handling
On the negative side, the time taken in LTL road freight transport is a bit more than FTL while punctual delivery times cannot be ensured. But most cases of B2B shipments fall in this category.
What Is Groupage?
Groupage is a logical extension of consolidation. Various consignments from different shippers are brought to a local depot for sorting, grouped together into trailer loads on established runs, and delivered locally at the other end of the journey. This is like taking a minibus, not a taxi, if you go for road transport.
Groupage is the right choice where:
- You want to send 1-3 pallets, or various small shipments
- The main concern is the cost and the goods can withstand standard delivery times via the network (typically 1-3 days for UK, 3-6 days to most of Europe)
- The destinations are varied rather than fixed each week
The downside: The cargo will be processed in depots, making proper packing and palletisation important. Time-definite or guaranteed services incur additional costs. If it comes to lightly packed goods, however, a groupage service in Birmingham will be the most cost-effective choice for shipment to the UK and Europe.
FTL vs LTL vs Groupage at a Glance
How Do You Decide? Three Questions to Ask
- What is the actual volume your shipment takes up?
Measure it honestly, by footprint, height, and weight. It’s the chargeable volume of a load, rather than its number of pallets, that influences the choice between FTL, LTL, and groupage pricing, as anything bigger than about half a truckload will tilt the math towards FTL.
- Is there a time constraint?
If your line goes down or there is a contract penalty because of late arrivals, the point-to-point transportation of FTL makes it worth paying for. If “by this week” is enough, go groupage or LTL and save your budget.
- Are your shipments sturdy?
Your machinery fixed on a specially made pallet can safely go any route. Furniture not packed and sensitive equipment would benefit from one touch handling offered by an exclusive carrier, or professional packaging before joining a network of routes.
This simple criteria set ensures that you compare apples with apples, and it’s the exact process we use to scope your inquiries.
Mixing Options across Your Supply Chain
Very few shippers stick to one method only; they make use of all three methods at some point. For example, a Birmingham shipper may transport his full truckload on a weekly basis to the distribution center, LTL to his regional wholesalers, and groupage for his spare parts and samples. It is common practice that reviewing your freight methods will save you money every time you do it in a year.
Get the Right Option! Not Just a Quote
Lowest price may not be the lowest cost. The price of a groupage pallet delivered in a broken state, or the price of an LTL delivery that fails to book a slot, will be much higher than the small saving. It all comes down to assigning the appropriate service to each consignment.
Beyond Logistics offers full truckload (FTL), less-than-truckload (LTL), and groupage road transport services throughout the UK and Europe from 4 Henley Cres, Birmingham, Solihull B91 2JD , with in-house packaging, customs clearing of European consignments, and clear guidance on which service to use in each case.
Ring +44 (0)121 318 7888 or visit beyondlogistics.co.uk, tell us about your consignment, and we will recommend the service and quote you.