Less-Than-Truckload

Definition of 'Less-Than-Truckload'


Shipping for relatively small loads or freight. Less-than-truckload services are offered by many large, national parcel services. These services can accommodate the shipping needs, including speed of shipment of small companies without the business being forced to buy, operate, insure and maintain a fleet of vehicles, which can be expensive enough to erode the profit offered by smaller loads.

Investopedia explains 'Less-Than-Truckload'


Companies providing less-than-truckload services can range from specialized services developed for this particular need and parcel services. They often combine the loads and shipping requirements of several different companies on their trucks, which makes it more cost effective than running an entire truck for one small load. It allows the carrier to distribute costs among several different businesses.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  2. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  3. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  4. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  5. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  6. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
Trading Center