How Are LTL Freight Rates Calculated?

LTL freight rate calculations are complicated.  Most do not know all of the variables that are compiled to calculate a freight quote or freight rate.  Today we hope to bring you transparency to the process.

The following are the 10 factors involved in determining an LTL freight rate:

1.  Shipment weight

2.  Freight Density

3.  Classification of Freight

4.  Distance or mileage traveled

5.  Base or Tariff Rates

6.  Freight All Kinds (FAK) rating

7.  LTL Minimums

8.  Negotiated Rate Tariffs or Negotiated Contract Rates

9.  Negotiated Discounts off Base or Tariff Rates

10.  Accessorials or Surcharges

To get a complete description of each of these factors, click here.

To get a handy online density formula calculator, click here.

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