What exactly is FTL? – and other Logistics Jargon Decoded

A truckload is one of the key segmentations in the freight transport industry. Businesses that require freight carrier services are familiar with the term – truckload. Goods to be transported are categorized into two segments i.e. ‘FTL’ and ‘LTL’. But what exactly does these terms mean? 

Simple, FTL full form is full truckload, while LTL means less than a truckload. But it isn’t as straightforward as it appears to be. Less than a truckload (LTL) does not specify a particular quantity, though it is usually less than 5 tonnes. In short, FTL is ideal for large shipments and LTL for small shipments.

A] What Is FTL In Logistics?

FTL meaning in logistics does not necessarily convey that the goods to be transported would occupy an entire truckload. Usually, goods that weigh 50 kg or more, are best serviced by a logistics services and transportation company, rather than a courier and parcels company due to its more cost-effective option. A heavy commercial vehicle transports an average upwards of 15 tonnes. So, cargo between 50 kg to 5000kg (5 tonnes) is usually categorized as LTL, and above that it is FTL.

B] FTL vs LTL 

In LTL, goods from different customers are transported together. This makes commercial sense as each customer only pays for the load they need to be transported. FTL transportation is the preferred mode when it comes to time-sensitive distribution services and the transport of fragile materials. LTL usually takes a lot more time because trucks will not depart unless they are fully loaded. 

On the other hand, FTL is much quicker than LTL. LTL goods may also be required to be moved from one vehicle to another between source and destination. FTL goods remain untouched between source and destination. LTL occupies a very small share of the pie, and FTL in logistics accounts for more than 80% of the market share in the US.

C] Some Jargon Associated With FTL

• ODC

This stands for over-dimensional cargo. In simple terms, any cargo that protrudes outside the loading deck of a transport vehicle constitutes ODC. Following are the dimensions specified by the Indian government: A height of no more than 3.8m from the surface, a width of 2.6m, and a length of 12m for rigid trucks and 16m for articulated trucks. ODC attracts an additional surcharge and thus it is a significant factor in vehicle selection.

• Local loads 

Goods that require road transportation sеrvicеs and need to be transported within a radius of 50-100 km are called local loads. These are usually ferried using trucks that are permitted to enter city limits.

• Reverse Logistics 

While logistics refers to the management of goods to their destination, there are several instances when goods need to be transported back from their destination. When this is an unplanned activity (such as in cases of rejected, damaged, or over-supplied goods), it is referred to as reverse logistics. How well a transport company manages reverse logistics is often the hallmark of the efficiency of its operations.

• Milk Run

Whether it is large conglomerates like Amul, or micro-operations in a rural set-up, milk collection from dairy farmers has always entailed collection from a number of places before being transported to a centralized location. Similarly, when goods in small quantities are collected by a single truck from loading points and then transported to a single destination, it is called a Milk Run.

• Multiple Delivery

FTL transportation refers to an entire truckload dedicated to a single customer and is necessarily collected from a single location. But, at times, part of the FTL cargo performs its distribution services to various points en route to the final destination. This is referred to as Multiple Delivery.

In short, FTL can minimize the time because of its feature of a single delivery. In this evolving world and with the latest technology in every other sector, quick transportation of goods is a challenge. But, with a full truckload, one can perform this activity with ease. If you want assistance in shifting your goods or any other logistics services, Mega Ltd is here to help you out by providing the best technology for logistics.