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Freight modes

Freight modes: LTL, shared truckload, full truckload and parcel

The same order can cost very different amounts depending on how it ships. Picking the right mode for each shipment, based on size, weight, timing and temperature, is one of the most direct ways to lower your freight spend.

This guide explains when each mode fits a CPG food and beverage shipper, what drives the cost, and how we choose the right one with you.

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The main freight modes, in plain terms

Less-than-truckload (LTL)

Your pallets share a trailer with other shippers' freight and move through the carrier's terminal network, often changing trucks along the way. You pay for your portion, priced by weight, distance and freight class, plus accessorials like liftgate or appointment fees. Good fit: a few pallets, flexible delivery dates, durable product. Watch out for: more handling (higher damage risk), less predictable transit, and freight class, reweigh and reclass charges that can push the price up after the fact.

Volume LTL

A larger LTL shipment quoted as a block instead of through standard class-based tariffs. It still moves through the LTL network. Good fit: shipments too big for standard LTL pricing but well short of a full trailer.

Shared and partial truckload

Your freight shares a full-size trailer with one or a few other shipments, but stays on the same truck from pickup to delivery instead of moving through terminals. Pricing is usually based on the trailer space and lane, not freight class. Good fit: mid-size shipments where you want less handling and more predictable transit than LTL, without paying for a whole trailer.

Full truckload (FTL)

You pay for the entire trailer, and it goes straight from your dock to the destination (or a few planned stops). Good fit: shipments that fill most of a trailer by space or weight, multi-stop routes to stores or DCs in one region, and retail deliveries with tight appointment windows. Watch out for: paying for empty space. A half-full truckload costs nearly as much as a full one, which is why load planning and consolidation matter.

Intermodal (truck plus rail)

Freight moves in a container by rail for the long middle of the trip, with trucks handling pickup and delivery at each end. Good fit: long-haul lanes with steady volume and lead time to spare. Watch out for: longer and less flexible transit, rail ramp locations, and drayage costs at each end that can erase the savings on some lanes.

Refrigerated (reefer)

Temperature-controlled trailers for frozen, chilled and some heat-sensitive products. Available as truckload, LTL and intermodal. Good fit: product that genuinely needs it all year, or only in certain seasons and lanes. Watch out for: paying reefer rates for product that only needs protection some of the time. Using refrigerated equipment only where it's needed is a common savings opportunity.

Parcel

Individual cartons shipped through parcel networks, priced per package by weight, size and zone, plus surcharges. Good fit: small, lightweight orders, samples, and direct-to-consumer shipments. Watch out for: dimensional weight pricing, residential and delivery-area surcharges, and the point where several cartons to one destination would cost less as a single LTL pallet. How we help: we review your parcel invoices alongside the rest of your freight, check dimensional weight and surcharges, look at carton sizes, compare your parcel agreements and discount tiers with the market, and negotiate with your parcel carriers. We also flag orders that should move as LTL instead.

Co-loading and pool distribution

Two ways to get truckload economics without a full truck of your own. Co-loading puts your freight on the same truck as compatible freight from other shippers going the same way. Pool distribution sends one consolidated truckload to a regional hub, where it's split into local deliveries. Good fit: steady volume into one region that's too small for your own truckloads, and retail or distributor deliveries that would otherwise go LTL one by one. Watch out for: product compatibility (food safety, temperature, odor), fixed pickup schedules, and how appointments and retailer delivery windows are handled at the final stop. How we help: we find where co-loading or pool distribution beats your current LTL costs, compare providers, and help set up and measure the program. Carriers and pool providers haul the freight; we work for you, not for them.

Industry data

Mode choice in numbers

Third-party figures from the sources linked under each number. They are not Maximizer Team results and do not predict your savings.

Freight mode comparison table

ModeTypical shipmentHandlingTransit predictabilityHow it's pricedMain cost risksBest fit for CPG
ParcelIndividual cartonsSeveral sorts and scansHigh for standard servicePer package: weight, size, zone, surchargesDimensional weight, residential and delivery-area surchargesSamples, small replenishment, direct-to-consumer
LTLA few palletsMultiple terminal transfersModerateWeight, distance, freight class, accessorialsReclass and reweigh charges, damage, minimum chargesSmall, flexible, durable orders
Volume LTLLarger multi-pallet shipmentsTerminal networkModerateQuoted per shipmentSame as LTL, plus quote validityShipments between LTL and a partial truck
Co-loading / pool distributionRegular smaller shipments into one regionConsolidated truck, then local delivery (pool)Good on scheduled lanesShare of truck, or hub plus delivery chargesFixed schedules, compatibility, final-mile handlingSteady regional volume that would otherwise go LTL
Shared / partial truckloadMid-size, part of a trailerStays on one truckGoodTrailer space and laneFewer carrier options on some lanesMid-size retail orders that need less handling
Full truckloadMost or all of a trailerDirect, minimal handlingHighPer load (lane rate plus fuel)Paying for empty space, detention, TONU (truck ordered, not used)Full or near-full loads, multi-stop routes, DC deliveries
IntermodalFull container loadsTruck to rail to truckLower; longer transitPer container, plus drayageDrayage, ramp distance, slower transitLong-haul lanes with steady volume and lead time
Refrigerated (any of the above)Temperature-sensitive productDepends on modeDepends on modePremium over dry equipmentPaying reefer rates when dry would workProduct that truly needs temperature control

The right answer usually isn't one mode. Most shippers need a mix, chosen lane by lane and order by order.

Cost tradeoffs to understand

  • Per-pound price vs. total costLTL can look cheaper per shipment and cost more per case once you add accessorials, reclasses and damage. We compare modes on cost per case and cost per pound, not just the freight bill.
  • Fill vs. frequencyShipping more often keeps inventory low but leaves trucks partly empty. Holding orders a day or two, or batching them, can turn several LTL shipments into one fuller truckload.
  • Speed vs. priceFaster isn't always needed. Matching service levels to real delivery dates avoids paying for speed nobody asked for.
  • Handling vs. damage and finesEvery extra touch is a chance for damage, shortages and late deliveries, which can become retailer deductions. See trade and deductions optimization.
  • TemperatureRefrigerated equipment protects product but costs more. Using it only where and when it's needed can lower spend without putting product at risk.
  • Freight class (LTL)LTL pricing depends on freight class, which is now driven largely by density after the industry's 2025 classification changes. Correct class and accurate weights help avoid reclass and reweigh charges.

Public research

What the EPA found

EPA's SmartWay® program groups carriers into categories including truckload, LTL, flatbed, refrigerated, package delivery and multimodal, so shippers can compare like with like, and encourages "determining the most efficient mode for each shipping need" (EPA420-F12-018, 2012, pp.1–3). Its intermodal bulletin highlights regional truckload lanes of 500 to 1,500 miles as a growing intermodal opportunity (EPA-420-F-19-013, 2019, p.1).

EPA's 2023 overview adds that "converting from LTL to TL mode means that a company has fewer shipments and thus fewer pickups, fewer deliveries, and less paperwork/processing" (EPA-420-F-23-003, 2023, p.2).

Source: U.S. EPA SmartWay publications (2012, 2019, 2023). The examples and figures are EPA's, not Maximizer Team results. Maximizer Team is not affiliated with or endorsed by the U.S. EPA.

How our mode optimization lever picks the right mode

Mode optimization is the first of our 10 savings levers. It works with shipment consolidation and trailer and equipment optimization, because the right mode depends on how full each shipment can be.

1. Benchmark. From 12 months of your freight invoices, we map every shipment by lane, size, weight, mode, temperature and cost per case. We compare your rates with the current market and set a finance-approved baseline.

2. Find the mismatches. We look for: - LTL shipments that could be combined into full truckloads, or moved to volume LTL or shared truckload - Small orders that could move to a carrier's lower-cost LTL tier - Parcel shipments that would cost less as LTL, and LTL shipments small enough for parcel - Parcel spend driven by dimensional weight, surcharges or discount tiers that no longer fit your volume - Regional LTL volume that could move through co-loading or pool distribution - Truckloads leaving partly empty that could be consolidated or planned as multi-stop routes - Long-haul truckload lanes that could move to intermodal - Refrigerated loads that don't need temperature control on every lane or in every season - Service levels that are faster (and pricier) than delivery dates require

3. Implement. We work with your team and your carriers to change how those shipments move, including order timing, batching, and carrier rate and contract terms by mode, parcel included. We don't haul freight or sell capacity. Your carriers, your contracts.

4. Verify. Every month we check paid invoices against the baseline and report realized savings by lane and mode. Savings from different levers are tracked separately, so nothing is counted twice.

Mode choices for food and beverage shippers

  • Retail DC deliveriesusually reward full or near-full truckloads with reliable appointment performance, since late or partial deliveries can trigger retailer fines.
  • Distributor orders(for example to UNFI or KeHE) are often mid-size, which makes the choice between LTL, volume LTL and shared truckload especially important.
  • Beverage, wine and beerare heavy, so trucks often hit the legal weight limit before they run out of space. Load planning matters as much as mode.
  • Snacks and light packaged foodstend to fill space before weight, so pallet height and stacking drive cost.
  • Chilled and frozen productneeds reefer, but not always the same level of protection on every lane and season.

Internal links: Food and beverage, including specialty food, beer and wine

FAQ

Freight modes FAQ

More answers on our FAQ page

What's the difference between LTL and FTL?

With LTL, your pallets share a trailer and move through the carrier's terminals, and you pay for your portion. With full truckload, you pay for the whole trailer and it goes direct. LTL suits small shipments; FTL is usually cheaper per case once a shipment fills most of a trailer.

What is shared truckload?

Shared (or partial) truckload puts your freight on a full-size trailer with one or a few other shipments, but it stays on the same truck from pickup to delivery. It's often a middle ground between LTL and full truckload, with less handling than LTL.

When does intermodal make sense?

On long-haul lanes with steady volume and enough lead time to absorb longer transit. Drayage at each end and the distance to the rail ramp decide whether it actually saves money on a given lane.

Do I need refrigerated trucks for all my food shipments?

Not always. Some products need temperature control only in certain seasons or on certain lanes. We check where reefer is required and where dry equipment would protect the product just as well.

Do you help with parcel shipping?

Yes. We review parcel invoices, dimensional weight, surcharges and your carrier agreements, negotiate with your parcel carriers, and move shipments between parcel and LTL when the other mode costs less.

What is pool distribution?

One consolidated truckload goes to a regional hub, where it's split into local deliveries. It can cost less than sending many separate LTL shipments into the same region.

Will changing modes hurt delivery performance?

It shouldn't. We match each mode to your actual delivery requirements and retailer appointment windows, and we track on-time performance after the change.

Are you a broker?

No. Maximizer Team is an independent freight savings advisor. We don't haul freight, sell capacity or take carrier commissions. No upfront fees. We're paid only from savings verified on your invoices.

Does freight class matter for every mode?

No. Freight class applies mainly to LTL. Truckload is usually priced per mile or per load, parcel by weight, size and zone, and intermodal by lane. That's one reason the cheapest mode can change as a shipment gets bigger or heavier.

Are fuel surcharges calculated the same way for every mode?

No. Each mode and carrier uses its own fuel table, index and base, and parcel surcharges change often. We check each one against your agreements when we compare modes, so the comparison reflects what you would really pay.

Find out if your freight is in the right mode

Start with a short intro call. Then send us 12 months of freight invoices. In 14 days you'll get a free written review of your biggest freight savings opportunities, including mode changes that fit your service needs. A CPG snack company saved $823,500 in year one: $637,500 in recurring savings plus a $186,000 one-time credit. Read the case study

Get my free freight reviewNo upfront fees. Paid only from savings verified on your invoices. NDA available.