Mastering Less Than Truckload Rate Calculation

Truckload on the left side of the road heading south.
Mastering Less Than Truckload Rate Calculation

Less-than-truckload shipping rates can be incredibly variable. It makes sense that the rates would be variable because LTL shipping weights, amounts, and spatial usage aren't standardized. The less-than-truckload shipping (LTL) market is worth an estimated $35 billion. Still, to many, it remains a little mysterious. LTL shipping services are their special classification which means freight only takes up part of a shipping trailer. 

FACTORS TO FAMILIARIZE YOURSELF WITH LESS THAN TRUCKLOAD RATE

Less-than-truckload shipping rates can be incredibly variable. It makes sense that the rates would be variable because LTL shipping weights, amounts, and spatial usage aren't standardized. The less-than-truckload shipping (LTL) market is worth an estimated $35 billion. Still, to many, it remains a little mysterious. LTL shipping services are their own special classification which means freight only takes up part of a shipping trailer. 

  • The Usual Suspects

Truckload shipping rates will never escape the standards of weight and distance. The lighter your freight is and the farther it's being shipped, the higher the cost of shipment is. That's calculated via centum weight, or hundredweight pricing, which lowers the shipping rate as the centum weight increases. There are some additional, more technical considerations to take into account as well.

  • FAK, Density, And Class

Freight All Kinds (FAK) is a shipping category that applies to shipments that have several different classes being shipped together. In LTL freight shipping,  there are 18 freight classes, and density is one of the most important determining factors of your freight class. Generally, the denser something is, the less it costs to ship, but costs rise with freight that is less dense. High density denotes lower classifications and lower shipping costs. Low density denotes higher classifications and higher costs.

  • Miscellaneous

It's easy to not think about the little things that certain LTL truck companies might tack onto your less than truckload rate, so it pays to be vigilant. Firstly, being conscious of the base rates of whatever shipping service you use is huge, beyond that, seek out discounts and haggle a little. Many shipping and freight companies will grant discounts for loyalty, bulk purchases, etc. Don't lose out on these opportunities because you're too shy to ask.

If you're looking into LTL shipping, look no further. The professionals at Diversified Transportation Services will answer any questions you have. After all, shipping logistics are our specialty, so get in touch with us today.

What Can DTS Do For You?

Whether you're a company looking to improve one facet of your supply chain, your entire supply chain, or simply looking for a transportation and logistics consultation, we can help.

Get In Touch
Copyright © 2022 – 2024 , Diversified Transportation Services. All Rights Reserved
magnifiercrosschevron-down