Less-than-truckload (LTL) freight is the awkward middle ground between parcel and full truckload. Pallets ship with other shippers' freight, billed by a combination of weight, dimensions, and "freight class" — a coded system that confuses even experienced shippers.
The standard pallet
In North America, the standard pallet is 48 × 40 inches (GMA pallet). With typical 4.5-inch deck heights:
48 × 40 × 4.5 = 8,640 in³ before any product is loaded
Maximum stack height (for most LTL carriers) is 96 inches total, meaning ~91.5 inches usable above the pallet. Maximum loaded volume:
48 × 40 × 91.5 = 175,680 in³ ≈ 101.7 ft³
European standard pallets (EUR/EPAL) are 1200 × 800 mm (~47 × 31.5 inches), smaller than North American GMA.
How LTL freight pricing works
LTL pricing components:
- Origin and destination ZIP codes
- Total weight
- Dimensions of each pallet
- Freight class (a code from 50 to 500)
- Accessorials (lift gate, residential, inside delivery, appointment)
Rates vary dramatically by class: Class 50 might be $30/CWT (per 100 lb), while Class 200 could be $100/CWT for the same route.
The freight class system
Freight class is determined by four characteristics:
- Density (lb/ft³)
- Stowability
- Handling
- Liability
For most commodities, density is the dominant factor. The National Motor Freight Classification (NMFC) maps density to class:
| Density (lb/ft³) | Freight class |
|---|---|
| Over 50 | 50 |
| 35-50 | 55 |
| 30-35 | 60 |
| 22.5-30 | 65 |
| 15-22.5 | 70 |
| 13.5-15 | 77.5 |
| 12-13.5 | 85 |
| 10.5-12 | 92.5 |
| 9-10.5 | 100 |
| 8-9 | 110 |
| 7-8 | 125 |
| 6-7 | 150 |
| 5-6 | 175 |
| 4-5 | 200 |
| 3-4 | 250 |
| 2-3 | 300 |
| 1-2 | 400 |
| Less than 1 | 500 |
Higher class = higher cost. Dense products (machinery, hardware) are class 50-85. Light, bulky products (foam, pillows, lampshades) are class 250-500.
Calculating density
Density (lb/ft³) = Weight (lb) ÷ Volume (ft³)
For a 48 × 40 × 60 inch pallet weighing 300 lb:
Volume = (48 × 40 × 60) ÷ 1,728 = 66.67 ft³ Density = 300 ÷ 66.67 = 4.5 lb/ft³
4.5 lb/ft³ falls into the 4-5 range — class 200. For 300 lb, a class 200 rate at $100/CWT means $300 just on weight.
Compare 300 lb in a denser configuration — 48 × 40 × 30 inches:
Volume = 33.3 ft³ Density = 300 ÷ 33.3 = 9.0 lb/ft³
9.0 lb/ft³ is class 100 — significantly cheaper. Same product, same weight, completely different freight class.
Dim weight in LTL
Many LTL carriers also apply dimensional weight — using a divisor (typically 10.4 to 13) to compute a billed weight from volume:
LTL dim weight (lb) = Volume (ft³) × Divisor
For our 66.67 ft³ pallet at a 12 divisor: 66.67 × 12 = 800 lb. If actual weight is 300 lb, billed weight is 800 lb — more than 2.5× more.
This is in addition to class-based rate. For light, bulky shipments, dim weight can dominate cost.
How to reduce LTL costs
1. Increase density
The single biggest lever. Compressing a pallet from 60 inches tall to 40 inches tall — without changing weight — can drop class 175 to class 85, saving 30-50%.
Strategies:
- Sturdier inner packaging that allows tighter stacking
- Disassemble bulky items
- Vacuum-compress soft goods
- Switch from inflated to deflated packaging
2. Build optimal pallets
Standard pallet is 48 × 40. Building above this footprint incurs an "overhang" penalty — many carriers charge as if the pallet were 53 × 45 anyway. Build to footprint, stack neatly, secure with stretch wrap.
3. Use the right class code
Misclassifying to a lower class than warranted is fraud — carriers audit and reclassify aggressively. But many shippers default to a generic class higher than necessary because they haven't checked actual density.
Calculate density for each SKU. If yours falls in class 65 but you've been booking class 85, you're overpaying 20-30%.
4. Negotiate freight class
For repeat shippers, NMFC classes can be negotiated. Working with a 3PL or freight broker often gets a "freight all kinds" (FAK) rating — single class for all your shipments, often 20-50% better than published rates.
5. Consolidate pallets
Two half-loaded pallets cost more than one full pallet. Minimum charges on LTL are significant ($100-150 minimum even for small shipments).
When to use FTL instead
Full-truckload (FTL) doesn't use freight class — flat rate for the entire truck ($2-4 per loaded mile in 2026):
- 1-5 pallets: LTL almost always wins
- 6-12 pallets: Either works; LTL slightly cheaper but slower
- 13+ pallets: FTL almost always wins
FTL also has faster transit times, less damage risk, more predictable schedules. For high-value shipments above 8 pallets, FTL is often worth it even if LTL is nominally cheaper.
The takeaway
LTL freight pricing rewards density. Calculating pallet density correctly — and reducing it where possible through packaging changes — has the highest ROI of any cost-reduction effort in warehouse operations.
Every shipment should have its actual density on the bill of lading, calculated from current measurements. Carriers reclassify mistakes aggressively, almost always upward. The shippers who get the best rates are the ones whose numbers are auditable and accurate.