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. Free On Board - FOB

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

    A trade term requiring the seller to arrange for the carriage ...
  4. Cost, Insurance and Freight - CIF

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

    A trade term requiring the seller to deliver goods to a named ...
  6. Common Carrier

    A commercial entity that gets paid to transport goods or people. ...
Related Articles
  1. What does Free Carrier Mean?
    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. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
  2. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  4. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  5. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  6. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
Trading Center