Your freight is traveling from Chicago to Atlanta. Along the way, it may share trailer space with shipments headed to Nashville, Birmingham, and other destinations. How do LTL carriers coordinate all that freight while keeping transportation efficient and costs manageable? 

The answer is the hub-and-spoke model, a transportation strategy that connects local terminals and regional distribution hubs to move freight through an organized network. By consolidating shipments and coordinating routes, less-than-truckload (LTL) carriers can serve businesses that don’t have enough freight to fill an entire truck. 

But what does the hub-and-spoke model look like in action? Let’s follow an LTL shipment from pickup to delivery and explore how this approach influences shipping costs, transit times, and freight handling. 

What is LTL shipping? 

Less-than-truckload (LTL) shipping allows multiple businesses to share space on the same truck. Instead of reserving an entire trailer, you pay to transport your freight alongside shipments from other customers. 

LTL shipping is commonly used for palletized goods that are too large or heavy for conventional parcel shipping but don’t require a full truckload. Shipments often weigh approximately 150 to 15,000 pounds, although carrier requirements and service options vary. 

For example, imagine three businesses shipping freight from Chicago: 

  • A furniture manufacturer sends four pallets to Atlanta. 
  • An electronics distributor ships two pallets to Nashville. 
  • An automotive supplier sends six pallets to Birmingham. 

Although each shipment has a different destination, all three are headed toward the same general region. This allows them to share trailer space for part of the journey before being separated and routed to their final destinations. 

What is the hub-and-spoke model in logistics? 

The hub-and-spoke model is a shipping system that uses a network of terminals to move freight. At each terminal, shipments are unloaded, sorted, and loaded onto trucks headed toward their next destinations. Some shipments may pass through several terminals and travel on different trucks before reaching their final destinations. On each leg of the journey, shipments can share trailer space with freight from other businesses traveling in the same general direction. 

Think about how connecting flights work. Airlines bring passengers from different cities into major airports, where they board connecting flights to their destinations. This arrangement allows airlines to connect more cities without operating nonstop flights between every possible pair. 

Hub and spoke logistics uses a similar strategy. Local trucks collect shipments and bring them to nearby terminals. From there, carriers organize freight for longer-distance transportation before sending it to facilities responsible for final delivery. 

What are the main components of the hub-and-spoke model? 

Several facilities and transportation activities work together to move shipments through an LTL network. 

Component What it does
Shipper Prepares the freight and provides shipment information.
Pickup and delivery trucks Collect freight from businesses and deliver shipments to their destinations.
Origin terminal Receives outbound freight, sorts shipments, and prepares trailers for departure.
Hub or breakbulk terminal Redistributes freight between different routes, regions, or terminals.
Linehaul transportation Moves freight between terminals, generally over longer distances.
Destination terminal Organizes incoming shipments for local delivery.
Consignee The party designated to receive the freight.

Carriers don’t all organize their networks the same way. Some use major regional hubs, while others rely more heavily on direct connections between local terminals. These facilities may also be called service centers. 

What is cross-docking? 

Cross-docking is an important activity within many LTL networks. It involves transferring freight from incoming trucks to outgoing trucks with little or no long-term storage. 

For example, a shipment arriving at a terminal in the evening might be unloaded, sorted, and moved to another trailer scheduled to depart later that night. Unlike a traditional warehouse, where products may remain in storage for extended periods, a cross-docking operation focuses on moving freight through the facility. 

How does the hub-and-spoke model work? Follow an LTL shipment 

Let’s return to our Chicago furniture manufacturer. The business needs to deliver four pallets of office furniture to a customer in Atlanta. The shipment is packaged, labeled, and ready for pickup. 

Here’s one possible journey through an LTL carrier’s network. The specific terminals, connections, and transportation schedule would depend on the carrier. 

Step 1: The carrier picks up the freight 

A local LTL driver arrives at the warehouse to collect the four pallets. The driver may have several other pickups scheduled in the area, allowing the carrier to collect freight from multiple businesses during the same route. 

The shipment’s bill of lading (BOL) provides important information, including the shipper, consignee, freight description, and transportation requirements. The carrier also typically assigns a tracking identifier, commonly called a PRO number. 

Step 2: The freight arrives at the origin terminal 

After completing the pickup route, the driver returns to the local terminal. Dockworkers unload the collected freight, identify where each shipment needs to go, and prepare outbound trailers based on the carrier’s routing plan. 

Our four pallets are assigned to a trailer traveling toward the Southeast, alongside other freight moving through the same part of the network. 

Step 3: The shipment begins its linehaul journey 

The truck departs on its scheduled linehaul route. Linehaul transportation refers to the movement of freight between terminals, typically over longer distances than local pickup and delivery routes. 

Carriers coordinate these departures with other terminals and connecting routes. If freight misses an outbound departure, it may need to wait for another available movement. 

That’s one reason pickup cutoffs and terminal processing times can influence delivery expectations. 

Step 4: Freight is transferred at an intermediate terminal 

Depending on the carrier’s network, the trailer may stop at a regional terminal. Workers unload the freight and sort shipments according to their next destinations. Our furniture might be placed on a trailer headed toward Atlanta, while other shipments continue toward Charlotte or Jacksonville. 

This is why an LTL shipment may not take the shortest route to its destination. Carriers consider terminal connections, freight volumes, scheduled departures, and service requirements when planning routes. Sometimes, moving freight through another terminal is more efficient than sending a truck directly to its destination. 

Step 5: The shipment reaches the destination terminal 

The furniture arrives at the carrier’s Atlanta-area terminal. Dockworkers organize the freight for local delivery routes and prepare it for dispatch. If the consignee requires a delivery appointment, the carrier may need to coordinate a receiving window before sending the shipment out. 

Step 6: The carrier completes final delivery 

A local driver transports the four pallets to the customer. The receiving party should inspect the shipment for visible damage or shortages and document any exceptions on the delivery receipt. 

Once delivery is completed, the carrier records the shipment’s final status. Our furniture has reached Atlanta, even though it may have traveled on several trucks along the way. 

Hub-and-spoke model flowchart 

Here’s a simplified illustration of how freight can move through a connected LTL network. 

This illustration represents one possible shipment journey. Some LTL freight moves directly between origin and destination terminals without passing through a separate regional hub. 

Hub-and-spoke vs. point-to-point logistics: What’s the difference? 

Not all freight moves through a network of terminals. With point-to-point shipping, a truck typically travels directly from the pickup location to its destination, without stopping at terminals to unload or transfer freight. 

For example, a manufacturer shipping a full truckload to a distribution center may use a direct route instead of moving freight through multiple terminals. 

Here’s how the two approaches compare. 

Hub-and-spoke logistics (common in LTL) Point-to-point logistics (common in FTL)
Uses connected terminals to organize freight Emphasizes direct transportation between locations
Supports shipments from many origins and destinations Works well when direct movements are practical
May involve multiple freight transfers Generally involves fewer intermediate handling events
Helps carriers consolidate smaller shipments Often depends on sufficient volume or dedicated capacity
Common in LTL and parcel transportation Common in dedicated truckload transportation

 
Neither approach is automatically better. Some LTL carriers combine both methods, using direct terminal connections on certain routes and intermediate facilities on others. 

Why do LTL carriers use the hub-and-spoke model? 

The hub-and-spoke strategy helps carriers operate extensive transportation networks without needing direct truck routes between every possible shipping location. 

For shippers, this approach offers several advantages: 

  • Better use of transportation capacity: Carriers can consolidate smaller shipments traveling through similar markets, making more productive use of available trailer space. 
  • Broader geographic coverage: Connected terminals allow carriers to serve destinations that may not generate enough freight to support frequent direct transportation. 
  • Flexibility when demand changes: Carriers can adjust equipment assignments, linehaul capacity, and routing to respond to changing freight volumes and operating conditions. 

These advantages help explain why the hub-and-spoke distribution model is widely used in LTL shipping, even though it may involve additional freight transfers. 

How does the hub-and-spoke model affect LTL shipping costs? 

The hub-and-spoke distribution model influences a carrier’s operating costs, but it doesn’t determine your freight rate by itself. 

Carriers must maintain terminals, employ dockworkers, operate material-handling equipment, and coordinate transportation between facilities. At the same time, the network helps carriers consolidate shipments and use transportation capacity efficiently. 

Your actual LTL shipping rate depends on several factors, including: 

  • Shipment weight and dimensions 
  • Origin, destination, and distance 
  • Carrier pricing agreements 

These factors help explain why two similar shipments can receive different quotes, even when they’re traveling comparable distances. 

Does passing through more hubs increase shipping costs? 

Not necessarily. LTL carriers generally don’t calculate rates by adding a separate charge for each terminal a shipment visits. Instead, pricing reflects the carrier’s applicable rating structure and shipment characteristics. 

A shipment traveling through multiple terminals may still receive a competitive rate, while a more direct service could cost more or less depending on the carrier and lane. 

The number of stops alone isn’t a reliable way to predict what you’ll pay. 

How does the hub-and-spoke model affect transit times? 

Your freight might spend only a portion of its journey traveling on the highway. The rest involves scheduled pickups, terminal processing, connecting departures, and final delivery arrangements. 

These activities are built into a carrier’s transportation schedule, but several factors can affect how smoothly they work together. 

What can cause LTL shipping delays? 

  • Missed connections: Freight arriving after an outbound trailer departs may need to wait for another available movement. 
  • Terminal congestion: High shipment volumes can increase unloading, sorting, and loading times. 
  • Weather and road conditions: Severe weather or transportation disruptions can affect scheduled routes. 
  • Capacity constraints: Equipment availability and freight volumes may influence how quickly shipments move. 
  • Delivery appointments: Some consignees require scheduled receiving windows, which can affect the final delivery date. 

These factors help explain why a carrier’s estimated transit time may differ from the actual delivery schedule. 

When delivery timing is critical, review available service options and determine whether a guaranteed delivery service is appropriate. Even guaranteed services have applicable terms and exceptions, so review those conditions before booking. 

How does tracking work in a hub-and-spoke network? 

LTL carriers use tracking identifiers, barcode scans, and transportation management systems to record shipment activity. Common tracking events include pickup, terminal arrival, terminal departure, out-for-delivery status, and completed delivery. 

However, tracking isn’t necessarily continuous. A shipment may travel overnight between terminals without generating a new customer-visible update until it reaches the next facility. A pause in tracking information doesn’t automatically mean the freight is delayed. 

For businesses managing multiple shipments, centralized shipping technology can make it easier to review available tracking information and identify exceptions that need attention. 

Does the hub-and-spoke model increase freight damage risk? 

LTL freight may be loaded, unloaded, and transferred several times before delivery. Each handling event presents another opportunity for damage if the shipment isn’t adequately protected. 

That doesn’t mean LTL shipping is inherently unsafe or that every LTL shipment has a higher probability of damage. Actual risk depends on factors such as packaging, handling practices, freight characteristics, and transportation conditions. 

However, shippers should understand where vulnerabilities can occur. 

What makes freight vulnerable to damage? 

Consider a pallet of boxed electronics. 

During its journey, forklifts may move the pallet between trailers and dock areas. If the boxes aren’t secured properly, the load could shift or become unstable. 

Common packaging problems include: 

  • Boxes extending beyond pallet edges 
  • Unevenly distributed weight 
  • Insufficient stretch wrap or banding 
  • Inadequate cushioning for fragile products 
  • Packaging that can’t withstand normal handling conditions 

Freight that looks secure while sitting in a warehouse may not be adequately prepared for repeated movement. 

How can shippers protect their LTL freight? 

Start with a pallet capable of supporting the shipment’s weight. Arrange products to create a stable load and avoid unnecessary overhang. 

Use suitable stretch wrap, banding, corner protection, or cushioning based on the freight’s characteristics. Follow applicable carrier packaging requirements and any relevant NMFC packaging provisions. 

Labels should be accurate and securely attached. Special handling instructions can communicate requirements, but they don’t replace proper packaging. 

Document the shipment’s condition before pickup. At delivery, inspect the freight for visible damage or shortages and record exceptions on the delivery receipt. Retain relevant photographs and packaging if damage is discovered, as they may be important to a freight claim. 

The goal is to prepare freight for the entire transportation process, not just the time it spends inside a truck. 

How to make hub-and-spoke LTL shipping work for your business 

Understanding how LTL networks operate is useful. Putting that knowledge to work is even better. 

Here are five practical ways to improve your shipping experience. 

1. Provide accurate shipment information 

Incorrect weights, dimensions, freight descriptions, or freight classifications can lead to billing adjustments and other complications. Measure and weigh freight after it’s packaged and verify the applicable freight classification before booking. 

2. Plan around delivery requirements 

Confirm receiving hours, appointment requirements, and any special services before the shipment moves. If a customer has a strict delivery deadline, allow enough time for the carrier’s estimated transit schedule and any necessary coordination. 

3. Choose carriers based on shipment needs 

The lowest rate isn’t always the best fit. Consider transit expectations, service coverage, delivery requirements, and available tracking capabilities when evaluating LTL freight carriers. 

4. Understand pickup cutoffs and terminal schedules 

Pickup timing can influence when freight enters a carrier’s transportation network. Ask about applicable pickup cutoffs and service schedules, especially when shipping time-sensitive freight. 

5. Use shipping technology to stay organized 

Comparing rates, managing shipment details, and reviewing tracking information can become complicated when you’re working across multiple carriers. Shipping technology can help bring those activities into a more consistent workflow. 

Frequently asked questions about hub-and-spoke logistics 

Standard LTL shipping typically includes delivery to the consignee’s location. However, some carriers offer terminal pickup as an alternative. Availability, pickup requirements, and potential charges vary by carrier and location.
Carriers may use other shipment identifiers and documentation to identify freight. However, missing or unreadable labels can complicate sorting and potentially delay transportation.
Some LTL carriers accept certain hazardous materials, subject to applicable regulations, carrier restrictions, documentation requirements, and handling procedures. Not every hazardous commodity is eligible for standard LTL service.
A delivery address change may be possible, depending on carrier policies and shipment status. Reconsignment requests can affect transportation charges and delivery timing.
The carrier may hold the freight while requesting further instructions. Depending on the circumstances and applicable terms, storage, redelivery, return transportation, or other charges may apply.

Make smarter LTL shipping decisions with ShipStation 

Now that you understand the hub-and-spoke model, you have a clearer picture of what happens to your freight after pickup and why carrier networks matter. 

But managing LTL shipping shouldn’t require you to become an expert in terminal operations. 

With ShipStation’s LTL shipping tools, you can manage parcel and LTL shipping within a connected workflow. Compare available LTL rates and services, book shipments, generate bills of lading and freight labels, and access tracking information without switching between separate shipping processes. 

Whether you’re sending your first pallet or managing a growing freight operation, ShipStation helps simplify the process so you can focus on running your business. 

Explore LTL shipping with ShipStation and discover a simpler way to manage your freight. 

Want to learn more?  Log in or sign up for a free trial today. 

Dustin Coleman
Dustin Coleman
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