LTL Freight Rates Explained

Have you ever wondered why LTL freight rates fluctuate so much?

You’re not alone! 

The world of shipping can often be confusing for the average person to navigate. That’s where we come in! 

We’re here to explain how LTL rates are calculated and why they frequently fluctuate. 

Let’s break it down: 

Weight

Freight carriers refer to a chart to determine which weight category your shipment falls into. As your LTL shipment weight increases, it moves into the next highest weight category, which has a lower rate per hundred pounds. To put it simply, The more your LTL shipment weighs, the less you pay per hundred pounds. 

Density

Density is the space a shipment occupies in relation to its weight. This is used as a major factor in determining your shipment’s freight class. A High density product has a lower classification than a product that is less dense. 

Freight Class

There are 18 freight classes established by the National Motor Freight Classification system, numbered from 50 to 500. Lower classes represent very dense freight that is difficult to damage and is easy to handle. These lower classes have lower LTL shipping rates. Higher classes represent lighter and less dense freight that typically takes up more space. Higher classes have higher shipping rates. 

Distance

Distance is perhaps one of the simplest price determinants to understand. In general, the longer distance your freight will travel, the higher the price will be. This is because fuel costs, driver costs and equipment costs all increase with distance. 

Accessorials 

Accessorial charges are extra services performed by the carrier that go beyond dock-to-dock pick up and delivery. These extra services come as an additional cost to you. Common examples include lift gate service, residential pickup or delivery, limited access locations and inside delivery. 

Still have questions about your LTL shipment? We’d love to help! Contact us at 844-774-4787 or get a quote now!