The main difference between FTL (Full Truck Load) and groupage is that with FTL, one shipper uses an entire truck, whereas with groupage, multiple shipments from different companies are combined into a single vehicle. Which transport solution is most suitable depends on factors such as the volume of your goods, the required delivery time, the destination and the available transport budget. Within an efficient supply chain, both solutions can play an important role.
What is FTL?
FTL stands for Full Truck Load. With this transport solution, an entire truck is reserved for a single customer. The truck travels directly from the collection address to the delivery address without picking up or delivering goods for other shippers along the way.
FTL is mainly used when:
- a shipment is large enough to fill an entire truck;
- a delivery is time-critical;
- goods need to be transported directly to a single destination;
- additional transhipment points are undesirable.
Because the truck is exclusively reserved for one customer, the route is usually shorter and more predictable.
What is groupage?
With groupage, smaller shipments from different companies are consolidated into a single load. This ensures that the available loading space is used as efficiently as possible and transport costs are shared among multiple shippers.
Within groupage, goods are often first collected at a distribution centre or cross-dock facility. The different shipments are then efficiently consolidated and transported to their destinations.
This transport solution is particularly suitable when a shipment is too large for parcel delivery but does not have enough volume to fill an entire truck.
The main differences between FTL and groupage
Although both transport solutions use trucks, they differ in several ways.
Use of loading space
With FTL, the entire loading space is reserved for one customer. With groupage, the same loading space is shared by multiple shippers.
Transport costs
When a truck is fully utilised, FTL is often the most efficient option. If you have smaller shipments, groupage is usually more cost-effective because you only pay for the portion of the loading space that you actually use.
Delivery time
FTL generally offers the shortest transit time because the truck travels directly to the final destination.
With groupage, there may be multiple collection and delivery stops along the route. As a result, the transit time can be slightly longer, although modern planning systems ensure that delivery times remain highly predictable.
Flexibility
Groupage offers greater flexibility for companies that regularly ship smaller consignments. You do not have to wait until an entire truck is filled before your goods can be transported.
FTL, on the other hand, is particularly suitable when large volumes are regularly transported to the same destination.
Which factors determine the right choice?
The choice between FTL and groupage depends on several logistics factors.
Shipment size
One of the most important criteria is the volume of the goods. As the size of a shipment increases, the likelihood that a full truckload becomes the more economical option also increases.
Required delivery time
When speed is essential, FTL often offers advantages because the shipment is transported directly to the consignee.
For less time-critical deliveries, groupage can be an efficient and cost-effective solution.
Destination
The destination also plays an important role. For both national and international transport, the most suitable transport solution is determined based on the route, the available capacity and the required delivery schedule.
When should you choose FTL?
FTL is particularly suitable when you transport large volumes or when speed and direct delivery are important. Because the truck is fully reserved for your shipment, it travels directly from the collection address to the delivery address. This eliminates additional transhipment or loading stops along the route, resulting in a short and predictable transit time.
This transport solution is particularly attractive when you can largely fill an entire truck, delivery times are critical or your goods need to be transported directly to a single destination.
When should you choose groupage?
Groupage is a good choice when your shipment is too small to fill an entire truck. Instead of reserving a complete truck, your freight is combined with shipments from other companies following a similar route. As a result, you only pay for the space that you actually use.
For organisations with fluctuating order volumes or regular pallet shipments, groupage offers an efficient combination of lower transport costs, greater flexibility and better utilisation of transport capacity. When delivery time is slightly less critical, groupage is often an attractive alternative to FTL.
And where does LTL fit into this?
In addition to FTL and groupage, the term LTL (Less Than Truckload) is also frequently used. This transport solution sits between the two. With LTL, a truck is partially filled with one or several larger partial loads, which generally results in fewer collection and delivery addresses than groupage.
In practice, the terms LTL and groupage are often used interchangeably. However, there is a difference: groupage mainly focuses on combining multiple smaller shipments from different shippers, whereas LTL usually consists of larger partial loads with a more limited distribution route.
Which transport solution is the most sustainable?
From a sustainability perspective, there is no universally best solution. The most efficient option depends on the available loading space and the characteristics of your goods flow.
When a truck is fully utilised, FTL can be a highly efficient transport solution. If only part of the loading space is required, groupage often offers advantages because multiple companies share the same truck. As a result, fewer individual journeys are required and the available transport capacity is utilised more efficiently.
A well-planned logistics operation therefore always aims to achieve the optimal balance between cost, delivery time, reliability and the sustainable use of transport capacity.
How does a logistics partner support this?
Choosing the right transport solution involves more than simply comparing rates. A logistics partner analyses your goods flows, delivery frequency, shipment volumes and required service levels to determine which solution best fits your supply chain.
By combining transport with services such as contract logistics, an integrated logistics solution is created in which warehousing, inventory management and distribution work seamlessly together. Would you like to learn more about efficiently transporting smaller shipments? Read more about groupage and discover which transport solution best fits your logistics processes.
