FTL, LTL, and Drayage: Different Types of Land Transport Modes Explained

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Trucks play an essential role in making sure the value chain is working correctly. It will not be an overreaction to say that taking them away will cripple the economy of the United States. The numbers show that truck drivers deliver 70% of the total goods across several states.

Nearly nine people are dependent on the industry for their livelihood. Of that number, 3.5 million are working as truck drivers. Overall, the data shows that there are an estimated 15.5 million trucks all across the US operated by more than one million logistics companies.

These logistics companies make up a transport segment known as Land Freight Services. A significant chunk of the total is made up of small and medium businesses. For instance, 9 in 10 of these companies have fleets fewer than six trucks. 

But land transportation has several types, and it is essential that you choose one that best fits your needs. It ensures that your goods arrive on time and in good condition while you save money in turn.

Here are the primary types of Land Freight Services:

1. Drayage. The term is derived from the word “dray,” which referred to a low cart pulled by a horse or cattle that were used to carry heavy cargo at short distances. While people nowadays do not use livestock to pull the cart, the practice remains. As you might expect, drayage freight refers to the service of carrying your shipment from point A to point B. When you need to transport your cargo from the port to the warehouse or storage unit, then this would be the service for you.

1. Full Truck Load. The FTL is an industry term that refers to the practice of shipping one dedicated cargo. If you need to send a shipment from point A to point B, and the volume is enough to fill up one truck, then a Full Truck Load is the ideal option for you. You end up saving more if the shipment will fill a whole shipping container. It also makes sure that your goods will arrive at the destination faster. Since the truck is not carrying other cargo that it needs to drop somewhere else, the driver can make good time. Another benefit is the security of your cargo. The handling is likely going to be limited at the ports as your precious goods would not be transferred from one truck to another at mid-transit. Unless, of course, the truck will encounter engine trouble on the way to its destination.

1. Less Than Truckload. As opposed to FTL, LTL will carry various cargoes from different companies. It means that the truck driver will make several stops as he drops the shipments at different destinations. Logistics companies typically calculate the fees on the standard cost per mile. It is a significantly cheaper option compared to the FTL since you do not have to pay for the whole container. As you might expect, it is also the riskier option. Your shipment is vulnerable to theft or damage during transit.

Those are the three primary modes of land transport used by freight companies. Each one has distinct pros and cons. Make sure to choose the correct option for your company when shipping your precious cargo.

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