Freight Shipping for Small Businesses: LTL vs Full Truckload

Parcel networks have hard limits. UPS and FedEx accept packages up to 150 lb, 108 inches long and 165 inches in length plus girth, while USPS stops at 70 lb. FedEx’s freight page puts it simply: “If your shipment is over 150 lbs., it’s considered freight.” Above that point, or whenever you’re moving pallets, you’re choosing between less-than-truckload (LTL) and full truckload (FTL) freight.

Two recent changes affect small shippers:

Freight classes are now based on density. On July 19, 2025, the National Motor Freight Classification (NMFC) moved many items from commodity-based to density-based freight classes.
FedEx Freight is a separate company. It split from FedEx on June 1, 2026, and FedEx says it now runs its own website.

This guide explains how each freight mode works, how LTL pricing and freight classes work, how to vet a carrier or broker, and how to prepare shipments and claims.

When a Small Business Needs Freight

Consider freight when:

A single piece or shipment is heavier than about 150 lb, or larger than parcel size limits.
You’re shipping palletized goods to a retailer, distributor or warehouse, or restocking inventory from a supplier.
You’re moving furniture, equipment or machinery.
Parcel surcharges make heavy boxes expensive. UPS and FedEx add large-package charges of $219.50 or more per package over 110 lb, or over 130 inches in length plus girth.

Below 150 lb, compare parcel options first. Our heavy package guide shows where USPS, UPS and FedEx are cheapest by weight.

LTL vs. Full Truckload

Factor	LTL (less-than-truckload)	FTL (full truckload)
Trailer	Shared with other shippers’ freight	Dedicated to your shipment
Typical size	One or a few pallets	Enough freight to fill, or justify, a whole trailer
Routing	Moves through the carrier’s terminals	Usually goes directly from pickup to delivery
Pricing basis	Weight, freight class, distance and extra services	The lane (origin and destination), market conditions and equipment
Handling	More handling between terminals	Less handling

LTL works like a shared ride. You pay for your share of the trailer, and the carrier combines your pallets with other freight, moving them through its terminal network. That makes it the usual choice for small businesses shipping one to several pallets.

Full truckload books an entire trailer, typically a 53-foot dry van, for your freight. It makes sense when you have enough volume to fill most of a trailer, need faster point-to-point transit, or want to limit handling for fragile or high-value goods. FTL is priced by lane and market conditions, which change with demand and fuel costs, so get a current quote rather than relying on a rule-of-thumb rate per mile.

How LTL Pricing Works

LTL quotes depend on four things:

Weight. The per-pound rate typically falls as shipment weight rises.
Freight class. The NMFC assigns classes ranging from 50 for the densest freight to 500 for the lightest. A lower class generally means a lower rate.
Distance, meaning the specific origin-to-destination lane.
Extra (“accessorial”) services, such as liftgate pickup or delivery, residential delivery, inside delivery and delivery appointments. Each carrier prices these in its own rules tariff, so list every service you need when you ask for a quote.

The 2025-2026 Freight Class Changes

Old Dominion Freight Line’s guide to the changes explains that a class reflects four characteristics:

Density: pounds per cubic foot.
Handling: fragility, hazardous materials or unusual packaging.
Stowability: whether the freight is hard to stack or regulated.
Liability: how easily it is damaged, stolen or spoiled.

The changes under Docket 2025-1, effective July 19, 2025, include:

A new 13-subprovision density scale replaced the 11-tier scale and added classes 50 and 55, which “could lower rates for heavier, more compact shipments.”
About 2,000 commodity listings were consolidated, cutting the number of NMFC items.
New special-handling identifiers flag freight with handling, stowability or liability concerns.
Follow-up dockets continue the process: Docket 2025-2 in fall 2025, and Docket 2026-1 in February 2026.

Because classes now depend so heavily on density, you need accurate weights and dimensions. To find density, divide the weight by the volume in cubic feet. A pallet measuring 48 x 40 x 48 inches occupies 92,160 cubic inches, which is 53.3 cubic feet (92,160 ÷ 1,728). If it weighs 600 lb, its density is about 11.25 lb per cubic foot. Old Dominion warns that noncompliance with the new NMFC items “could lead to adjustments in freight rates, clerical fees, and operational disruptions,” so measure every pallet, including the pallet itself.

Choosing a Carrier or Broker

You can book LTL in three main ways:

Directly with an LTL carrier. FedEx Freight, now separate from FedEx, says it is “100% focused on LTL shipping.” It offers FedEx Freight Priority for speed, FedEx Freight Economy for lower cost, and FedEx Freight Direct for heavy deliveries to, or through, the customer’s door. Old Dominion and many other national and regional LTL carriers sell directly too.
Through a carrier’s logistics arm. UPS no longer runs its own LTL fleet, but it says its supply chain unit offers “less-than-truckload and truckload services.”
Through a freight broker or software. Brokers compare carriers and book the shipment for you. Some shipping software includes freight. ShipStation’s pricing page, for example, lists LTL quoting and booking.

Check credentials before you book. The Federal Motor Carrier Safety Administration (FMCSA) requires for-hire interstate motor carriers, brokers and freight forwarders to hold operating authority in addition to a USDOT number. A property broker must also file a $75,000 surety bond (Form BMC-84) or trust fund agreement (Form BMC-85). FMCSA’s free SAFER Company Snapshot lets you search a company by USDOT number, MC number or name and see its identification and safety record.

Compare like with like. Give every carrier or broker the same weights, dimensions, freight class, pickup and delivery details and extra services, so the quotes are comparable.

Preparing a Freight Shipment

FedEx’s freight packaging guidelines give practical pallet rules:

Use a standard pallet. The FedEx Packaging Lab prefers the standard wood pallet developed by the Grocery Manufacturers Association, now called the Consumer Brands Association. It “typically measures 40” by 48"" with four-way forklift entry. A new pallet is recommended over a damaged or repaired one.
Stack in columns, without overhang. FedEx says freight hanging over the pallet edges can lose “as much as 32 percent” of its compression strength, and that “claims resulting from improper stacking or load shifting may not be honored.”
Secure the load with banding and stretch wrap so it can’t shift.
Check international rules. For export shipments, some countries require wood pallets and crates to be heat- or chemically treated against pests.

Each shipment also needs a bill of lading (BOL), the contract and receipt for your freight. It lists the shipper and consignee, the number of pallets or pieces, weight, NMFC class and item, a description of the goods and any special instructions. Label each pallet so it can be matched to the BOL. When the freight arrives, the recipient should inspect it before signing and write any visible damage or shortage on the delivery receipt.

Freight Claims: Know the Rules

Freight claims run under federal law, not parcel-carrier claim pages:

Filing and lawsuit deadlines. Under the Carmack Amendment (49 U.S.C. 14706), a motor carrier “may not provide… a period of less than 9 months for filing a claim” or less than two years for bringing a lawsuit. Your bill of lading sets the exact deadline.
A note on the delivery receipt isn’t a claim. FMCSA’s claim rules (49 CFR Part 370) say notations of damage on delivery receipts don’t count as a claim. You have to file a written claim for a specified amount with the carrier.
Carrier response times. The carrier must acknowledge your claim within 30 days. It must pay, decline or make a firm settlement offer in writing within 120 days after receiving it.

Ask about the carrier’s liability limits before you ship high-value goods, because LTL liability is set in each carrier’s tariff and may not cover full value. For parcel claims, see our guide to filing a shipping claim.

Next Steps

Measure and weigh your typical pallet, and calculate its density.
Confirm the freight class for your commodity with your carrier or broker under the current NMFC.
Get at least two quotes with identical details and every extra service you need.
Verify the carrier or broker in FMCSA’s SAFER system.
Read more about parcel options in our small business shipping guide. If your freight is headed to Amazon, see our FBA shipping guide.