Less-than-truckload (LTL), or groupage, freight means consolidating the cargo of several shippers who cannot fill a truck on their own and carrying it in the same vehicle. Each shipper pays only for the space or weight it uses. The price is usually set by comparing loading metres (ldm), actual kilograms and the weight calculated from cubic metres, and charging on whichever is highest.
How does groupage transport work?
In groupage transport, the forwarder brings together small shipments heading in the same direction to build a full truckload. A typical flow looks like this:
- Collection: Each shipment is picked up from the shipper's address with a small vehicle, or the shipper delivers the cargo to the warehouse itself.
- Consolidation: At the cross-dock warehouse, the cargo is weighed and measured, customs documents are checked, and shipments are loaded onto the same truck according to destination region.
- Main haul: The truck travels with the consolidated load to the distribution warehouse in the destination country. Customs formalities are carried out with a separate declaration for each shipment.
- Distribution: At the destination warehouse the cargo is broken down and delivered to the consignees with small vehicles.
On some lanes the vehicle visits several loading points in sequence without calling at a warehouse; this reduces the number of transshipments but makes planning harder.
Pricing: ldm, kilograms and cubic metres
A loading metre (ldm) is one metre of trailer floor length across the full width of the trailer. The calculation is: ldm = (cargo length × cargo width) / 2.4. Common practice in the European road freight market is to convert 1 ldm into 1,750 kg and 1 m³ into 333 kg of chargeable weight; the ratios may vary by company and lane.
Example: four euro pallets (1.2 × 0.8 m), each 1.6 m high, non-stackable, with a total weight of 1,400 kg.
- ldm: 4 × 0.96 / 2.4 = 1.6 ldm → 1.6 × 1,750 = 2,800 kg
- Volume: 4 × 0.96 × 1.6 = 6.14 m³ → 6.14 × 333 ≈ 2,045 kg
- Actual weight: 1,400 kg
The invoiced value is the highest one, 2,800 kg. If the pallets were stackable, the ldm would be halved and the price would drop significantly. For different scenarios, see the entry how groupage freight is calculated.
Groupage compared with full truckload
| Criterion | Groupage (LTL) | Full truckload (FTL) |
|---|---|---|
| Pricing unit | ldm, kg or m³ | Per vehicle |
| Transit time | Longer because of collection and distribution | Direct, shorter |
| Handling | Multiple times in warehouses | Only loading and unloading |
| Customs risk | Other shippers' paperwork can hold up the vehicle | Single shipper |
Which one to choose in which situation is explained in the entry difference between FTL and LTL.
Which cargo is it suitable for?
- Shipments from a few pallets up to roughly 6–8 ldm
- Orders shipped in small lots at regular intervals
- Machine parts and spare parts that are too heavy for air freight but too small for a full truck
- Cargo too large to hand over to a parcel carrier but not enough to fill a truck; where the line is drawn is explained in the entry international courier vs groupage truck
Risks and precautions
- Damage: The cargo is moved by forklift in more than one warehouse. Sturdy pallets, edge protectors and stretch wrapping should be used.
- Delay: Waiting until the vehicle is full and another shipper's missing documents at customs can extend the transit time. For cargo with a fixed delivery date, this margin should be asked about at the quotation stage.
- Incompatible cargo: Dangerous goods must be segregated in line with ADR mixed loading rules, and food products according to the risk of odour and contamination.
- Incorrect dimensions: If the value measured at the warehouse is larger than the one in the quotation, the invoice goes up.
How does Voltim Global support you?
For groupage (LTL) freight requests, Voltim Global shows the ldm, weight and volume calculation at the quotation stage, making it clear what the price is based on.