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For businesses shipping smaller loads, less-than-truckload (LTL) shipping has long been seen as a cost-effective option. But while the initial savings might seem appealing, there are hidden costs and significant risks associated with LTL shipping that can quickly add up. Late deliveries, damages, and unexpected fees are just a few of the challenges that could impact your bottom line. If you're relying on LTL shipping, it’s crucial to understand its drawbacks and know that alternative solutions exist.Ìý

In this post, we’ll explore the key disadvantages of LTL freight shipping, including speed, damage rates, and upcoming regulations. We'll also discuss how Shared Truckload can offer a modern, efficient solution.Ìý

Speed Concerns

The average on-time delivery rate for LTL shipments in 2024 was only , meaning nearly 1 in 6 shipments arrived late. The root cause is that LTL shipments transit through a hub-and-spoke system. Goods are loaded and unloaded at multiple terminals, traveling complex routes before reaching their final destination. Each stop adds time, increasing the likelihood of delays.

For businesses working with strict deadlines, especially those supplying big-box retailers or grocery distributors requiring 95% or higher on-time delivery rates, this can be a deal-breaker. Late deliveries often result in hefty penalties or customer rejections of entire shipments. These challenges are a key reason many companies end up shipping partially empty truckloads to ensure on-time deliveries, sacrificing budget to meet tight delivery standards.Ìý

Higher Risks of Damage 

On average, shippers reported a damage rate for LTL shipments in 2024. This means 1 in every 80 shipments resulted in a damage or loss claim. At first glance, this percentage might seem small. However, the costs can quickly escalate, with damage claims averaging per shipment. For large enterprises shipping higher volumes, the financial impact is staggering. The average enterprise shipper spent around $5.1 million annually on LTL-related damage and loss issues in 2024.Ìý

Damage is mainly caused by the frequent handling inherent in the LTL hub-and-spoke model. Shipments are loaded and unloaded multiple times, exposing them to further risks of mishandling and theft. For fragile or high-value goods in particular, this can result in significant financial losses and operational disruption. In many cases, shippers resort to paying for an entire truckload to protect fragile items when they don't need the full capacity.Ìý

Upcoming NMFC Changes 

Changes to the National Motor Freight Classification (NMFC) code system, set to take effect in July 2025, will bring further challenges to LTL shipping. While aimed at simplifying freight classification, these reforms will introduce short-term uncertainty for many shippers.Ìý

Key updates include:

• Transition to standardized density-based classification
• Unique identifiers for specialized freight types
• Condensed commodity listings
• Enhanced freight classification tools

70.3% of LTL shippers are preparing for this shift by analyzing historical shipment data, changing packaging procedures, investing in pallet scales, and shifting to other freight modes. With reweighing and reclassification fees already common pain points in LTL, this shift means significant adjustments.

A fix for inefficiency: Shared Truckload

For businesses looking to mitigate the risks and hidden costs of LTL shipping or being forced to pay for an entire truck, Shared Truckload offers a compelling alternative. ÃÛÌÒ´«Ã½â€™s Shared Truckload service, ÃÛÌÒ´«Ã½Direct^®, is powered by advanced AI pooling technology. This technology identifies the best possible routes for shipments and pairs them with other ÃÛÌÒ´«Ã½ shippers heading in the same direction into a single Shared Truckload. This means shipments travel directly from origin to destination without intermediate stops, resulting in faster transit times and fewer handling risks.Ìý

Shipments using ÃÛÌÒ´«Ã½â€™s ÃÛÌÒ´«Ã½Direct^® Shared Truckload service saw a damage-free rate of 99.8% in 2024. This makes Shared Truckload shipments 5.4x less likely to be damaged than traditional LTL.Ìý

Shared Truckload eliminates reweigh or re-class fees, which is particularly valuable as NMFC changes loom in 2025. With no linear foot cutoffs or overlength tariffs, greater flexibility ensures businesses never get pushed into paying for space they don’t need.Ìý

ÃÛÌÒ´«Ã½â€™s Shared Truckload is a proven, innovative solution offering reliable, damage-free shipping without the hidden costs of LTL. With ÃÛÌÒ´«Ã½Direct^®, you’ll save time and money while avoiding emissions by up to 40%. LTL shipping may look like a cost-effective solution at first glance, but its hidden fees, delays, and damage risks can make it far more expensive in the long run. And with upcoming NMFC changes adding further uncertainty, it’s more important than ever for businesses to explore alternatives.Ìý

Avoid hidden shipping costs today. Learn More About ÃÛÌÒ´«Ã½Direct^® Shared Truckload.Ìý