Less-Than-Truckload

AAA

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.



RELATED TERMS
  1. Truck Tonnage Index

    An index that measures the gross tonnage of freight that is transported ...
  2. Cost, Insurance and Freight - CIF

    A trade term requiring the seller to arrange for the carriage ...
  3. Free Alongside - FAS

    A trade term requiring the seller to deliver goods to a named ...
  4. Free On Board - FOB

    A trade term requiring the seller to deliver goods on board a ...
  5. Cost and Freight - CFR

    A trade term requiring the seller to arrange for the carriage ...
  6. Common Carrier

    A commercial entity that gets paid to transport goods or people. ...
RELATED FAQS
  1. How does a company efficiently keep track of its distribution channels?

    Tracking distribution channels is a critical and challenging process. A company must understand how to communicate with vendors, ... Read Full Answer >>
  2. How are distribution channels generally organized?

    Distribution channels are generally organized according to specific business needs. They can be simple or complex, direct ... Read Full Answer >>
  3. Where on the Internet can I find free sample templates for a bill of exchange?

    A number of different websites offer free templates to help an individual or business generate a bill of exchange. A bill ... Read Full Answer >>
  4. What is the difference between a bill of exchange and a bill of lading?

    A bill of exchange is a documentation of payment, much like a promissory note. On the other hand, a bill of lading is a receipt ... Read Full Answer >>
  5. What is the best software for managing bills of lading?

    The best software program for managing bills of lading depends on an organization's size and industry, as well as its overall ... Read Full Answer >>
  6. Can I use the same bill of lading for all modes of transportation?

    The same bill of lading cannot be used for all modes of transportation. There are several types of bills of lading, including ... Read Full Answer >>
Related Articles
  1. Active Trading Fundamentals

    Channel Dow Jones To Tackle Transport Stocks

    Trade the Dow Jones Transportation Average directly through a traditional fund or break components into baskets of sub-sectors.
  2. Investing

    What does Free Carrier Mean?

    Free carrier is a trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. Costs for transportation and risk of loss transfer ...

You May Also Like

Hot Definitions
  1. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  2. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  3. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  4. Current Account Deficit

    A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services ...
  5. International Monetary Fund - IMF

    An international organization created for the purpose of: 1. Promoting global monetary and exchange stability. 2. Facilitating ...
  6. Risk-Return Tradeoff

    The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!