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What Is The Difference Between Less Than Truckload Operations and Parcel Carrier Operations?

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A parcel carrier traditionally only handles shipments weighing less than approximately 150 pounds. Parcel carriers typically still compete with Less Than Truckload carriers by convincing shippers to break larger shipments down to smaller packages. Parcel carriers typically refer to multipiece shipments as Hundredweight shipments as the rating is based on 100 pounds. The Hundredweight rate is multiplied by the shipment's weight and then divided by 100 and then rounded up to the nearest hundred.

Less Than Truckload carriers prefer to handle shipments with the least amount of handling units possible. Less Than Truckload carriers prefer a shipment of 1 pallet containing 100 boxes shrink-wrapped to form one piece rather than 100 individual pieces. This reduces handling costs and the risk of damage during transit. Typically the rates of Less Than Truckload carriers per pound are less than the rate of parcel carriers.

Both Less Than Truckload carriers and parcel carriers are similar in the fact that they both use a network of hubs and terminals to deliver freight. Delivery times by both types of service providers are not directly dependent upon the distance between shipper and consignee. Also, using a Less Than Truckload carrier is very similar to that of using a parcel carrier.

The shipper often has a regular, if not daily, pickup schedule and can log onto the carriers homepage to schedule pickups, track shipments, print paperwork, and manage billing information.

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