← Business Metric: Industry Specific (Infrastructure, Transport & Utilities) (all topics)
FTL (full truck load) vs LTL (less than truck load)
What it is
Full Truck Load dedicates a vehicle to one customer point-to-point; Less than Truck Load consolidates multiple customers' freight, moving it through transhipment hubs
FTL is simpler and asset-light to broker; LTL needs network infrastructure but earns better margins per tonne
Impact on industries
- LTL margins exceed FTL because consolidation adds value the customer cannot replicate, and the network is a barrier to entry
- FTL is easy to scale through brokerage without owning vehicles, so it provides volume and market presence at low capital cost
- FTL is close to a commodity - thousands of small operators compete, pricing is transparent and margins are minimal
- LTL requires hubs, sorting and route density before it works, so entry needs sustained investment ahead of profitability