LTL Freight Consolidation

LTL (less-than-truckload) freight consolidation services combine multiple smaller shipments from different shippers heading in similar directions to fill trucks, reducing costs for all parties.

With LTL rates typically 30-50% higher per pound than full truckload, consolidators generate revenue of $150,000-$450,000 annually with profit margins of 18-28% by offering savings to shippers while optimizing truck capacity.

The business requires freight forwarder or broker authority, understanding of LTL pricing and routing, and relationships with both shippers and carriers.

Services include route optimization, load consolidation, cross-docking coordination, and shipment tracking.

The consolidator earns by charging less than standard LTL rates while paying carriers truckload rates for full loads.

Success factors include strong logistics planning, ability to match complementary shipments, and efficient operations to minimize handling costs.

Many consolidators focus on specific lanes or regions where they can consistently fill trucks.

Technology for route optimization and shipment matching is valuable.

Clients include small to medium businesses shipping 2-10 pallets that don't fill a full truck.

Marketing focuses on demonstrating cost savings compared to standard LTL and building shipper volume on key lanes.

With freight costs remaining high in 2025 and small businesses seeking affordable shipping options, LTL consolidation offers opportunities for logistics professionals who can build sufficient shipment volume to make consolidation profitable.