How to Win with LTL: Margins, Pitfalls, and Profit Opportunities

Why LTL Matters

Freight brokers have long relied on full truckload as the backbone of their business, but shippers are increasingly asking for more flexible options. Less-Than-Truckload (LTL) shipping fills that gap, offering a way to move partial loads efficiently without paying for unused trailer space.

Adding LTL to your service mix helps capture smaller customers, retain existing accounts, and maintain revenue through market shifts. It’s a simple way to expand your wallet share and provide a complete shipping solution.

Now that Sunnybrook subscribers can access LTL carrier rates directly within the platform, brokers can quote and manage LTL shipments without third-party systems or manual work.

What to Consider Before Adding LTL

Before diving into LTL, it’s important to understand how it differs from traditional truckload freight.

1. Carrier Network LTL carriers use a hub-and-spoke terminal model, so you’ll need to balance national coverage with regional specialists. Each carrier offers different transit times, freight classes, and service areas.

2. Rating Complexity LTL pricing depends on freight class, weight, dimensions, distance, and accessorials like liftgates or residential delivery. Automated rating helps you avoid costly quoting errors and maintain consistent pricing.

3. Automation and Visibility Manual quoting and tracking can drain your team’s time. Carrier integrations and automated workflows streamline rating, dispatching, and tracking which are all crucial for scaling profitably.

4. Customer Expectations LTL customers expect transparency. Providing accurate delivery estimates and real-time tracking enhances trust and reduces inbound service calls.

Common Challenges in LTL Freight

LTL can be highly profitable when managed well, but it also introduces new challenges.

Freight Class Disputes and Reweighs Incorrect freight classifications can lead to reweighs and billing adjustments. Automated tools and carrier integrations help minimize disputes.

Inconsistent Service Levels Each carrier operates differently, which can lead to variability in performance. Real-time visibility helps identify service gaps and strengthen relationships with reliable carriers.

Slow or Inaccurate Quoting Manual rate checks can delay quotes and risk lost opportunities. Instant quoting through integrated rating tools ensures speed and accuracy.

Complex Billing Accessorials and adjustments often complicate LTL billing. A unified platform simplifies invoicing and improves cash flow.

LTL Margins and Profit Expectations

Typical LTL gross margins range between 12 and 25 percent, depending on the carrier mix, customer type, and shipment volume. While the margins are often smaller per load than in full truckload, they can scale quickly when managed efficiently.

Many brokers access competitive rates through partnerships or co-brokerage arrangements, which allow them to offer strong pricing without the long runway or shipment volume usually required to establish direct carrier agreements. This approach helps level the playing field, giving smaller brokerages access to high-quality rates and reliable service options.

Automation continues to be a key factor in margin performance. Brokers who streamline quoting, billing, and tracking processes typically see healthier profits because they reduce time spent on manual work and minimize costly errors.

The Revenue Opportunity

Even moderate LTL volume can drive meaningful revenue.

For example:

• 100 LTL shipments per month × $200 average revenue per shipment = $20,000 in gross revenue

• Scale that to 500 shipments and it becomes $100,000 per month
  

Beyond revenue, offering LTL strengthens retention. Shippers prefer working with a single provider who can handle all modes, making your brokerage a one-stop solution.

How Sunnybrook Makes LTL Simple

Sunnybrook now includes LTL carrier rates within the platform, enabling users to quote, book, track, and bill LTL freight alongside truckload shipments.

Benefits include:

• Instant LTL rating: Access integrated carrier rates without separate portals.

• Automated quoting: Generate and compare LTL rates in seconds.

• Built-in tracking: Provide customers with updates from pickup to delivery.

• Unified billing: Manage invoices and margins for all freight in one view.
  

With Sunnybrook, brokers can expand into LTL confidently and profitably without adding administrative work.

Adding LTL is no longer just a “nice-to-have” for freight brokerages, it’s a growth strategy. It diversifies your revenue, keeps customers engaged, and builds resilience in changing markets.

When supported by the right technology, LTL becomes an efficient, scalable profit center. With Sunnybrook’s built-in LTL rating and automation tools, you can start quoting today and capture more business from the customers you already serve. Contact Sunnybrook to start capitalizing on LTL opportunities. Schedule a time to meet with one of our experts.

Catch you on the road,

The Sunnybrook TMS Squad

www.sunnybrooksoftware.com