Hub and Spoke vs. LTL Trucking

Actually, both systems may often work together. For instance, small shipments don’t fill a trailer unless combined with other small loads. Hub and Spoke freight trucking takes multiple small shipments to a location, often a city (called the hub) to be delivered to the spokes (individual destinations within a reasonable distance from the hub). This works well when multiple drops are located within the hub city.

Combining the Two

Hub and spoke strategy may sometimes be combined with LTL trucking when delivery destinations are farther from the hub and spokes. LTL is less than truckload and is used for deliveries farther afield from the hub. Both strategies work because smaller shippers can find trucks at reasonable rates. Both segments are popular with carriers and shippers. Receivers also find both systems simple and quick, facilitating inventory control for receivers and taking advantage of reasonable shipping rates. Definitely a win-win.

Defining LTL Trucking

Less than truckload (LTL) refers to carriers hauling multiple shipments to different locales, often over long distances, even reaching into several different states. For example, a single trip hauling fresh produce with multiple deliveries over many miles between. LTL shipments are often loaded on pallets and placed in the trailer in reverse order to simplify unloading in the right order of deliveries. Truck drivers like it because they can call the receiver to provide a delivery time and are in and unloaded and back on the road quickly.

Oftentimes, the road home may look similar to the delivery load. A number of pickups may be involved in the drive back to the home terminal when you’re an LTL driver. But the reality is that pickups are usually loaded quickly. Shippers want their product on the truck and rolling.