Parcel vs. Pallet Shipping: Which One to Choose?

Parcel Shipping vs. Pallet Shipping: Key Differences

We often get questions from our clients regarding which shipping option should they choose for their business: parcel shipping or pallet shipping. These two options are quite similar, so the choice between them is not easy.

This informative guide will help you familiarize yourself with the key differences between LTL and parcels, and ship your products in the most efficient, safe, and cost-effective way possible.

Parcel shipping

Parcels are small, lightweight shipments that weigh below 150 lbs and can be lifted without assistance. They are labeled and shipped individually, and usually come in boxes with internal protective material, such as bubble wrap or styrofoam.

Some carriers categorize boxes as parcels if their combined length and girth don’t exceed 165 inches.

The carrier will consolidate your parcel shipment on a pallet with other parcel shipments, send it to a localized facility, and then reconsolidate it again. With this much manual handling, your boxes are at a greater risk of loss and damage, especially since they are lighter and more fragile than pallets.

However, the fact that there are many checkpoints and possible transfers of parcels means that they are generally easier to track than pallets. 

Another benefit of shipping parcels is that, in case of having more or fewer boxes than intended, the carrier will spend minimum time loading them all up, which isn’t the case with pallet shipments.

Also, parcel trucks have a daily-calculated route that rarely changes, which makes parcel shipping a better option if your shipment is time-sensitive.

Parcel shipping is the right choice if you’re shipping single, smaller items to individual customers (for example, if you own an artisan shop), if you’re shipping locally, or on-demand, and if timely delivery is important to your business. 

Pallet shipping (LTL)

LTL shipping is a better choice for freight that is heavier than 150 lbs, bulky, or uniquely shaped.

Palletized shipments are a less risky option, as they are packaged more safely, and they go through fewer manual handling and checkpoints, so there is a smaller risk of loss and damage. They are also most commonly moved using a forklift, which is generally safer than a conveyor belt used for parcel shipments. 

Pallet shipping allows for transporting multiple packages together to the same location, saving money on shipping costs per package.

Once it is picked up, an LTL shipment travels to a distribution or fulfillment center, where it is unloaded, consolidated with other pallets moving to the same area, and then shipped to another terminal to be re-consolidated, or shipped directly to the delivery location.

LTL is the right choice for you if you have a business that ships large amounts of freight regularly, or if you need multiple shipments to arrive at the same time.

The key differences between parcel and pallet shipping

1. Safety

Parcels are generally more fragile than pallets, shipped in higher volumes, and handled at many checkpoints, making them more susceptible to getting lost and damaged.

2. Tracking

Better tracking is a huge advantage of many checkpoints of parcel shipping. On all of these checkpoints, parcel carriers get updates of the shipment location. 

3. Cost

Pallets are larger and heavier than parcels, and therefore more expensive, but are nevertheless a more cost-effective option if you’re shipping large amounts of freight to the same place. 

4. Speed

LTL shipments are more likely to encounter unexpected delays while traveling from a terminal to a terminal, via truck or train. Also, a human error can play a larger role in LTL shipping. If a carrier comes to pick up two pallets and finds out there are twice as many, loading time is dramatically increased, and if the carrier ends up with no room in the truck, pickups scheduled for the same day may get pushed to the next. 

This doesn’t typically happen with parcel shipments. Several unexpected parcels will not make that much of a difference when it comes to loading and pickups. 

Final thoughts

Now that you know the main differences between pallet shipping and parcel shipping, you’ll be able to choose the option that best fits your needs. 🙂

Freightera offers business shipping across Canada and the USA, and cross-border between these two countries.