Less Than Truckload (LTL) rates:

Rates for LTL freight are determined by weight, class, pick up and destination zip codes (in the transportation industry this is referred to as the “lane”), and any additional services required to meet the shipper’s and consignee’s (this is another term used for the delivery location) needs.

Carriers will offer shippers and brokers discounts for freight that they are wanting to secure for business. The amount of discount is negotiated with the carrier and may be offered to lessen the perceived cost of shipments in addition to the discounted rates. What this really means is say a shipper wants to move his products which are class 85 computers and is negotiating his rates with a carrier. The carrier may offer to move this freight at a lower class of 50 thus lowering the perceived cost.

Fuel surcharges are the fuel costs associated with the lane of a shipment and added on top of line haul costs. Fuel is updated on a weekly basis and is based on the national average of diesel. With rising fuel costs LTL has seen an increase as when people are buying less the need to ship is lower. So where a company used to fill up a whole trailer with their product now they may only need half as much trailer space and can ship their product cheaper by going LTL instead of using a full truck load carrier.

Accessory charges such as residential pick up, lift gate delivery, call ahead notification to the receiver, or job site pick up or delivery are some additional services that LTL carriers will offer. These services are very handy for customers whose freight may not always pick up at or deliver to a facility that is equipped with a dock and fork lift.

Carriers determine some of these charges as a percentage of the weight or simply as a flat charge.

Reference: click here.