The cost of an LTL freight shipment is influenced by much more than distance and weight.
Two shipments with similar weights can have very different prices depending on their dimensions, freight class, pickup and delivery locations, required services, and how difficult the freight is to transport.
Understanding the main factors that affect LTL pricing can help you prepare more accurate shipping estimates and reduce unexpected charges after the shipment has been delivered.
What Is LTL Shipping?
LTL stands for Less-Than-Truckload.
It is commonly used when a shipment is too large or heavy for normal parcel shipping but does not require an entire truck.
Instead of paying for a full trailer, several shippers share space on the same truck. The carrier combines freight moving through its transportation network and charges each customer based on the characteristics of the individual shipment.
Because several shipments share the same equipment, carriers must consider how much space each shipment occupies and how difficult it is to handle.
1. Shipment Weight
Weight is one of the most important factors in freight pricing.
In general, heavier shipments cost more to transport because they require more fuel and reduce the amount of additional freight that can be loaded onto the truck.
However, LTL pricing does not increase in a simple dollar-per-pound relationship.
Carriers often use weight breaks, meaning the rate per pound may decrease as the shipment becomes heavier.
For example, a 1,000-pound shipment may have a lower cost per pound than a 300-pound shipment, even though the total shipping charge is higher.
2. Shipment Dimensions
The physical size of the freight is also important.
A pallet that weighs only 300 pounds but occupies a large amount of trailer space may be more expensive to transport than a compact 600-pound pallet.
Carriers have a limited amount of usable space inside each trailer, so bulky freight can reduce the carrier's ability to load other shipments.
Always measure the shipment after it has been completely packaged.
Include:
- Pallet height
- Crating
- Packaging
- Pallet overhang
- Protruding parts
- Protective materials
The carrier may use the shipment's actual outside dimensions rather than the dimensions of the product itself.
3. Freight Density
Density compares the shipment's weight with the amount of space it occupies.
A shipment with high density places more weight into a relatively small amount of trailer space.
A low-density shipment uses more space for the same amount of weight.
For example, compare these two shipments:
Shipment A
Weight: 500 lb
Dimensions: 48 x 40 x 30 inches
Shipment B
Weight: 500 lb
Dimensions: 48 x 40 x 72 inches
Both weigh exactly the same, but Shipment B occupies considerably more trailer space.
That difference can affect the shipment's density, freight class, and transportation cost.
4. Freight Class
Freight class is commonly used in LTL pricing in the United States.
Classes generally range from 50 to 500.
A shipment assigned a higher freight class will often have a higher transportation rate than a comparable shipment assigned a lower class.
Freight classification can consider factors such as:
- Density
- Handling
- Stowability
- Liability
- Commodity characteristics
The freight class entered when requesting a quote should be as accurate as possible.
If the carrier later determines that a different classification applies, the freight bill may be adjusted.
5. Distance Between Origin and Destination
Distance naturally affects transportation cost.
A shipment traveling from Miami to Orlando will normally cost less than a similar shipment traveling from Miami to Seattle.
However, mileage alone does not determine the price.
LTL carriers operate through networks of terminals. Freight may move through several terminals before reaching its destination.
Pricing can therefore also depend on the carrier's network, the origin and destination markets, and the amount of freight moving through those areas.
6. Pickup and Delivery ZIP Codes
The exact origin and destination can make a substantial difference in the rate.
Carriers may have strong coverage in some metropolitan areas and less frequent service in rural or remote regions.
A shipment moving between two major transportation hubs may be less expensive than a similar shipment traveling to a remote destination, even when the mileage is comparable.
ZIP codes are therefore an important part of most freight quotes.
7. Fuel Surcharges
Fuel is a major operating expense for freight carriers.
Many LTL rates include a separate fuel surcharge that changes periodically based on fuel prices and the carrier's pricing structure.
As a result, the cost of the same shipment may change even when the weight, dimensions, freight class, and route remain exactly the same.
When comparing freight quotes, verify whether the quoted price includes the applicable fuel surcharge.
8. Residential Pickup or Delivery
Standard LTL service is generally designed around commercial locations such as warehouses, factories, and businesses.
Residential locations can require additional time and equipment.
A carrier may therefore apply a residential pickup or residential delivery charge.
A location can sometimes be considered residential even when a business operates from the property.
If the address is a home or residential property, it is important to indicate this when requesting the freight quote.
9. Liftgate Service
A liftgate is a hydraulic platform mounted on the back of a truck that allows freight to be lowered from the trailer to ground level.
Liftgate service may be required when the pickup or delivery location does not have:
- A loading dock
- A forklift
- Another safe method of loading or unloading the freight
Liftgate service normally carries an additional charge.
For example, a pallet being delivered to a warehouse with a loading dock may not require a liftgate, while the same pallet being delivered to a residence probably will.
10. Limited-Access Locations
Certain locations can require additional time, coordination, or special handling.
Carriers may classify these as limited-access locations.
Examples can include:
- Schools
- Churches
- Construction sites
- Storage facilities
- Military installations
- Farms
- Camps
- Government facilities
- Airports
- Some medical facilities
The definition of a limited-access location can vary between carriers.
If you are unsure about a pickup or delivery location, it is better to provide the complete information when requesting the quote.
11. Inside Pickup or Inside Delivery
Standard freight service typically involves pickup and delivery at an accessible loading area.
If the driver must move freight inside a building, additional charges may apply.
Inside service does not necessarily mean the carrier will move freight to any room requested. The exact service provided depends on the carrier and the location.
These requirements should be discussed when arranging the shipment.
12. Delivery Appointments
Some receivers require the freight carrier to schedule an appointment before delivery.
An appointment requirement can increase the cost because the carrier must coordinate the delivery with the recipient rather than simply delivering during the normal route.
Appointment delivery is common at locations such as:
- Warehouses with controlled receiving schedules
- Distribution centers
- Residential addresses
- Schools
- Construction sites
- Facilities with restricted receiving hours
13. Reweigh Charges and Weight Adjustments
Carriers may weigh freight after pickup.
If the carrier's measured weight differs from the weight shown on the shipping documents, the transportation charges may be recalculated.
For example, if a shipment is declared as 600 pounds but actually weighs 780 pounds, the carrier may issue a weight adjustment.
This is one reason it is important to include the weight of the pallet, crate, packaging, and other shipping materials.
14. Reclassification Charges
A carrier may also review the freight classification.
If the freight class entered on the Bill of Lading does not match the classification the carrier determines is applicable, the shipment can be reclassified.
A change in freight class may substantially affect the final transportation charge.
Accurate descriptions, measurements, weight, and classification information can help reduce the likelihood of these adjustments.
15. Oversized or Excessive-Length Freight
Very long freight can be more difficult to load inside an LTL trailer.
Examples include:
- Pipes
- Lumber
- Metal bars
- Long machinery
- Automotive components
- Rolled materials
Because long items can interfere with normal pallet positioning and reduce usable trailer space, many carriers apply additional charges once a shipment exceeds certain length thresholds.
These thresholds and charges vary by carrier.
16. Special Handling Requirements
Some freight requires special treatment because of its shape, value, fragility, or transportation requirements.
Examples may include:
- Fragile equipment
- Machinery
- High-value goods
- Non-stackable freight
- Irregularly shaped items
- Hazardous materials
- Temperature-sensitive products
Special handling can affect both the available carrier options and the total shipping cost.
17. Non-Stackable Freight
Freight that cannot have another shipment placed on top of it can consume more trailer space than its physical dimensions suggest.
For example, a pallet that is only 36 inches high may prevent the carrier from using the space above it if the shipment is marked as non-stackable.
Because trailer space is valuable, some carriers may apply additional pricing or different rules to this type of freight.
18. Detention and Driver Waiting Time
Freight drivers generally operate on tight pickup and delivery schedules.
If a driver must wait an excessive amount of time while freight is prepared, loaded, unloaded, or released, the carrier may charge detention.
To help avoid this charge:
- Have the shipment ready before pickup.
- Make sure loading equipment is available.
- Inform the receiver before delivery.
- Confirm receiving hours.
- Prepare required documents in advance.
19. Redelivery Charges
If the carrier attempts delivery but cannot complete it, a second delivery attempt may result in a redelivery charge.
Common causes include:
- The business is closed.
- The receiver is unavailable.
- No unloading equipment is available.
- A required delivery appointment was not arranged.
- The receiver refuses the shipment.
- The delivery address is incorrect.
Confirming delivery requirements before shipping can help avoid these charges.
20. Carrier and Service Level
Different freight carriers may quote different prices for the same shipment.
One carrier may have a stronger network in a particular region, while another may offer better pricing on a different lane.
Service levels can also vary.
The lowest freight quote is not always the best option if the shipment is time-sensitive or requires specialized handling.
When comparing carriers, consider:
- Price
- Estimated transit time
- Service area
- Claims history
- Tracking capabilities
- Pickup reliability
- Required accessorial services
Why the Original Quote and Final Freight Bill Can Be Different
A freight quote is normally based on the information supplied before the shipment is picked up.
If that information changes or is found to be inaccurate, the final bill can change as well.
Common reasons include:
- Incorrect weight
- Incorrect dimensions
- Incorrect freight class
- Additional pickup or delivery services
- Residential delivery
- Liftgate requirements
- Limited-access locations
- Redelivery
- Detention
- Oversized freight
Providing complete and accurate shipment information before booking is one of the best ways to reduce unexpected freight charges.
Before Requesting an LTL Freight Quote
Have the following information available:
- Origin ZIP code
- Destination ZIP code
- Number of pallets or handling units
- Length
- Width
- Height
- Total weight
- Commodity description
- Freight class when applicable
- Pickup location type
- Delivery location type
- Liftgate requirements
- Any special handling requirements
The more accurate this information is, the more reliable the freight quote is likely to be.
Calculate Before You Request a Freight Quote
Before requesting an LTL shipping rate, completely package your shipment and obtain its final dimensions and weight.
You can then use the Freight Class Calculator to calculate shipment density and estimate the freight class information needed when preparing your freight quote.