Small Parcel vs. LTL

In this article, we delve into the characteristics of LTL and Small Parcel to help you decide which of the two is ideal based on your unique needs and circumstances. 

What Is the Difference Between LTL and Small Parcel?

Small parcel shipping is a delivery method that involves the transport of small packages from origin to destination. It is great when just sending a couple of items or even an individual order.

For e-commerce businesses that do in-house fulfillment, small parcel shipping makes up the bulk of their order delivery. The downside of small parcel shipping is that since it is a low-volume shipping method, it costs more per unit than LTL shipping. 

LTL is a freight delivery method that is used when your shipment is not large enough to fill up the truck. In LTL, shipments from different shippers are consolidated onto one truck, making it a cost-effective freight delivery option. 

It's not as cheap as FTL, but you get significant cost savings over shipping parcels individually. 

An example of LTL shipping is an Amazon seller sending palletized shipments to various Amazon warehouses. Their merchandise will be sent to the fulfillment centers along with other sellers' goods. 

Differences Between Small Parcel and LTL

Weight

For most carriers, including UPS and FedEx, parcel shipping is used to send packages that weigh 150 pounds or less. Small parcels over 150 pounds may be subject to surcharges and extra fees. 

Shipments over 150 pounds are considered freight and must be delivered through services like LTL and FTL. With LTL, shipments typically weigh between 150 and 15,000 pounds. If your LTL shipment is over the weight limit, you'll need to contact your carrier's freight solutions team for a custom arrangement. 

Pricing

Small parcel and LTL shipping rates are calculated based on several factors, including weight, dimensions, distance to destination, and additional services required. However, LTL pricing is more complex, including another factor known as freight class. 

What Is a Freight Class?

Based on the National Motor Freight Classification (NMFC) standard, a freight class is a system that is used to represent categories of freight items. The NMFC assigns a freight class to each type of commodity, ranging from class 50 to class 500. The class of an item is based on its characteristics, such as stowability, ease of handling, density, and liability. 

Carriers use the freight class to determine rates and how to handle the shipments. The higher the freight class of an item, the more it costs to ship it.

Tracking and Insurance

With parcel shipping, packages are scanned at multiple sorting terminals along the way, and their status is updated for you to view in your online reporting portal. However, with LTL, tracking may be less detailed due to a concept known as zone skipping. 

Instead of following the traditional step-by-step shipping process where packages move through multiple distribution centers, zone skipping allows the consolidated shipments to be transported directly to a sorting hub closer to the recipient. This can result in temporary information gaps, reducing real-time visibility for shippers and recipients. 

However, carriers often provide estimated delivery windows or update tracking information once the packages reach the destination zone.

Processing and Delivery Time

Since parcels are lower volume and lighter than LTL shipments, packing and shipping them is faster and easier. With LTL shipping, you may need to liaise with your carrier to provide shipment details or book a dock. 

Parcel shipping can also offer faster delivery than LTL shipping. 

Full Truckload (FTL)

Apart from small parcel shipping and LTL, another common shipping method is FTL or Full Truckload. Full Truckload shipping is ideal when you're shipping an entire truck of goods from one point to another. 

With FTL, truck capacity is totally dedicated to your shipments alone - there is no mixing with other shippers' goods. FTL is ideal when you're shipping many items or want your freight delivered quickly with no interruptions. 

For example, a manufacturer of body lotion may receive a large order from a retailer. FTL would be the perfect delivery method for the manufacturer to get the shipment from their warehouse to the retailer's distribution facility.  

A thing to note with LTL and FTL shipments is extra fees. For example, if you don't have a dock, you may need to pay a separate lift-gate charge, among other charges. 

To maximize resources, you should utilize all three of the above methods when applicable, depending on the volume of the load you're transporting. Some carriers can help you do Modal conversion to get the shipping method that best suits you. 

Sometimes, you may even need an intermodal shipment, which is where you use LTL, FTL, and a small parcel for one shipment.

What Is Amazon Partnered Carrier?

Amazon Partnered Carrier is a discount shipping service that allows Amazon sellers to ship merchandise to fulfillment centers using third-party logistics companies that Amazon authorizes. 

To be eligible for the Amazon Partnered Carrier program, sellers need to fulfill specific requirements, including maintaining a favorable seller rating, consistently meeting order fulfillment deadlines, and adhering to Amazon's shipping policies and guidelines.

The program has several benefits for sellers, including:

• Lower shipping costs - Since the carriers are in partnership with Amazon, sellers enjoy lower rates and discounts that have been negotiated between the two companies.

• Enhanced tracking - Your Amazon seller central is linked with the carrier's tracking systems, making it easy to follow up on your shipments. Better tracking can, in turn, help to improve customer experience. 

• Faster shipping times

• Access to Amazon's customer service, which can help to answer your queries and resolve any issues quickly.

• Convenience - Sending your goods to Amazon is easier since the program allows sellers to restock inventory, create outbound shipments, and print shipping labels all in one place.

Sellers enrolled in the partnered carrier program can choose between three delivery options:

• Small parcel deliveries
• Less than truckload (LTL) deliveries
• Full truckload (FTL) deliveries

Amazon recommends small parcel for boxes and LTL or FTL for palletized shipments. Let's dive deeper into these three shipment categories: 

What Is the Difference Between Small Parcel Delivery and Less Than Truckload Amazon?

Amazon Partnered Carrier - Small Parcel Delivery

With APC, you can ship your domestic shipments with a partnered carrier within the 48 contiguous U.S. states, Canada and Mexico. The partnered carrier program lets sellers ship small parcels with UPS in the U.S. and Canada and DHL in Mexico. 

After you have ordered your small parcel shipment, tracking info is automatically provided in your Seller Central account. Tracking updates will be provided as your boxes are scanned in transit to the fulfillment center. The seller is responsible for coordinating the pick-up or drop-off of the package with the selected carrier, incurring the associated costs.

After your small parcel shipment reaches the Amazon Fulfillment Center, the products will become available for sale on the Amazon Marketplace.

Please refer to the Amazon SPD requirements for more information on sending small parcels using Amazon Partnered Carrier.

Amazon Partnered Carrier - Less Than Truckload and Full Truckload

The APC program lets you ship LTL or FTL using partnered carriers to the 48 contiguous states. 
When you choose 'Less Than Truckload' as your delivery option, Amazon automatically sends your shipment to the least-expensive carrier available. This saves you the inconvenience of hunting for and bidding on truckload carriers.

When ordering an LTL shipment using an Amazon Partnered carrier, you need to provide information such as a freight ready date, freight class, and pallet dimensions. Once this information is provided, Amazon will provide you with an estimated pick-up date, on which the shipment must be ready by 8 AM. 

The estimated cost of your LTL shipment is based on the information you provide and the pick-up date. The shipping cost will be charged directly to your seller account as an 'inbound transportation charge'.

Sometimes, sending a full truckload (meaning shipments with over 12 pallets) or using Amazon Freight may be more cost-effective and have better lead times than LTL shipments. 

Pro Tip: Sending a full truckload (shipments with more than 12 pallets) or using Amazon Freight may be more cost-effective and have better lead times than LTL shipments. However, FTL and Amazon freight both require the seller to request a dock appointment from the Amazon fulfillment center before pick-up of the shipment. 

Amazon Partnered Carrier FTL and LTL Tracking - To track your LTL and FTL shipments, you need two numbers:

• The carrier's PRO number - A PRO (Progressive Rotating Order) number is a unique identifier assigned to a specific shipment by the carrier that allows stakeholders to track a shipment.
• The carrier's PO number - Purchase Order (PO) number, is a unique alphanumeric code assigned to a specific purchase order used to track, manage, and communicate about the order.

These can be found in your Bill of Lading (BOL).

For detailed information regarding LTL and FTL shipments within the Amazon Partnered Carrier program, please refer to the Amazon LTL requirements.

How Long Does Small Parcel Shipping Take?

The time it takes for your small parcel to arrive at its destination depends on the shipping carrier, origin, destination, and the selected service level. Other factors like bad weather, accidents, or peak shipping periods can also affect delivery time. 

Generally, small parcel shipments can range from same-day and next-day delivery for express services to several business days for standard options. To give you an idea of what you can expect, we have listed delivery times of standard shipping services offered by the most popular carriers; UPS, FedEx, and USPS.

UPS

FedEx

USPS

How ShipSigma Can Help

At ShipSigma, we understand it can be hard to pore through your package-level detail data, trying to find where you could be overspending. That's why we use our best-in-class AI-backed technology to analyze your shipping invoices to find the best cost-saving and discount opportunities. This process has enabled us to serve over 300 companies, saving them an average of 25.2% in shipping costs. 

Ready to pay less and save money? Reach out to us today.