What is Full Truckload (FTL) Shipping?

At its most basic, full truckload is one of the most straightforward shipping modes available to shippers. Let’s look at the typical process involved in booking FTL shipments:

1. Booking: To book a full truckload shipment, the shipper typically contacts either a carrier (a trucking company) or their logistics providers (often a transportation-focused third-party logistics provider, or 3PL). The shipper specifies the details of the shipment, including the type and quantity of goods, the pickup and delivery locations, special requirements and instructions (such as guidelines for stacking pallets to ensure the goods are not damaged in transit).
2. Price Negotiation: The booking process also includes price negotiation. 3PLs play a crucial role by negotiating shipping rates and obtaining freight quotes on behalf of their shipper clients. Shipping rates are based on a number of factors, including:
   • Total shipment weight: Shipment weight is taken into consideration as it drives fuel consumption and wear and tear on vehicles.
   • Type of goods: Some freight requires special handling, which can lead to added charges or specialized equipment.
   • Mileage: The distance the shipment will travel directly influences fuel consumption, wear and tear on the vehicle and driver utilization.
   • Fuel costs: Also known as the fuel surcharge, fuel costs are a significant factor in the price of a truckload shipment.
   • Market conditions: Supply and demand, driven by seasonality, geography, weather conditions and other factors can greatly influence the truckload rate.
   • Service level requirements: Expedited service, or specific precise pickup and delivery times can increase the rate.
   • Accessorial charges: Extra fees for loading/unloading services, liftgate services, and detention (waiting time), if applicable, can drive up the shipment cost.
   • Shipment volumes: 3PLs can leverage their relationship with carriers and the overall volume of shipments they book with a carrier to negotiate discounts on behalf of the shipper.
3. Documentation: Once the shipper or 3PL and the carrier agree upon on a rate, the next step involves a variety of key documents that that are sent to the carrier to ensure proper handling and management of the shipment and to comply with relevant regulations (for example, if special permits are required). These documents are often exchanged between shippers, 3PLs and carriers via Electronic Data Interchange (EDI) in order to streamline communications and reduce errors and miscommunication.
   • Bill of Lading: The Bill of Lading, or BOL, is a primary document in the booking process. The BOL serves as a receipt for the goods, as a contract for the transportation of the goods, and a document of title for the goods. The BOL will detail the shipment’s contents, origin, destination, and handling instructions.
   • Carrier Rate Confirmation: Know colloquially as a “rate con,” this document outlines the agreed-upon rate, including accessorials, for the shipment.
   • Load Tender: The load tender is a formal offering of the shipment to the carrier and includes all relevant shipment details.
   • Packing List: This document provides a detailed inventory of the goods being shipped. The carrier will use this document to confirm the contents of the shipment and ensure accurate delivery.
   • Special Permits of Certifications: Oversized loads, or loads containing hazardous materials like chemicals, require permits and certifications in order to be in compliance with regulations.
   • Insurance Documentation: For shipments that require special or additional insurance coverage, proof of insurance and other relevant documentation is provided.
   • Customs Documentation: International shipments require additional documentation, such as customs declarations and export/import permits as part of the customs clearance process.
4. Loading and Transportation: With the booking, price negotiation, and documentation complete, the shipment is loaded onto a truck and the shipping process begins. Truckload shipments typically travel directly from the origin to the destination without making additional stops or transfers. The exclusive nature of truckload shipping is one of the key benefits to shippers when using this mode of transportation.
5. Tracking: While the shipment is in transit, shippers can get real-time location updates via onboard Global Positioning System (GPS) units, Electronic Logging Devices (ELD), telematics systems, integration with a Transportation Management System (TMS) or Real-Time Transportation Visibility Platforms (RTTVP) such as project44, FourKites, and Macropoint.
6. Delivery and Unloading: Once the truck arrives at the final destination, the truck is unloaded by the receiver or by a lumper, a laborer that is contracted to provide loading and unloading services. The delivery is documented by a delivery receipt or Proof of Delivery (POD).
7. Payment Process: After the delivery is complete, the carrier provides the shipper with the BOL, invoices, and any other required documentation and paperwork. The shipper processes the payment, and the transportation process is complete.