Freight answersLTL
How Is LTL Freight Priced?
Short answer
An LTL charge usually starts from a base rate per hundredweight (100 lb) that depends on the freight class, the shipment's weight break and the lane. A negotiated discount is applied, subject to a minimum charge. A fuel surcharge tied to the weekly U.S. diesel price and any accessorial charges, such as liftgate or residential delivery, are added on top.
What it depends on
The pieces of an LTL charge
| Piece | What it is | Source of the number |
|---|---|---|
| Base rate | Cents or dollars per 100 lb (CWT) for the class and weight break on the lane | The carrier's rate base |
| Discount | A percentage off the base rate, or special pricing | Your agreement with the carrier |
| Minimum charge | The least the shipment can cost after discount | The carrier's tariff |
| Fuel surcharge | A percentage on linehaul that moves with the weekly diesel price | The carrier's fuel table |
| Accessorials | Liftgate, residential, inside delivery, limited access and similar | The carrier's rules tariff |
Base rates and weight breaks
In a typical LTL rate table, "the rates shown in the columns are the charges per each 100 lbs (cwt-hundredweight)," and "as the weight breaks increase, the rate per cwt decreases" while "as the class increases, the rate per cwt increases." The breaks run from under 500 lb (L5C) through 500, 1,000, 2,000, 5,000 and 10,000 lb minimums.[1]
Rate bases also include an alternation clause: when a shipment would cost less rated at the next higher weight break, the carrier charges the lower amount. The same training paper gives an example where 445 lb is cheaper rated as 500 lb.[1]
Minimums, fuel and accessorials
A carrier's tariff sets a minimum charge that applies after discounts; one LTL rules tariff says charges "will not be reduced below the applicable minimum charge after discount or absolute minimum charge."[2] The same tariff sets the fuel surcharge from "the weekly national average diesel fuel price set by the U.S. Department of Energy effective each Monday,"[2] a price the U.S. Energy Information Administration publishes weekly.[3] Accessorials such as liftgate, residential delivery and inside delivery are separate items in the same rules tariff.[2]
Example
A 1,200 lb shipment is 12 CWT and falls in the 1,000 to 1,999 lb weight break. The charge is 12 x the base rate for its class on that lane, less the shipper's discount, but not below the minimum charge; then the fuel surcharge percentage for that week is applied to the linehaul, and a liftgate charge is added because the receiver has no dock.
Limitations
Pricing is contractual and differs by carrier and customer, so no single rate applies. Some shipments, such as volume LTL, are priced on the space they occupy instead. Rates and fees in any published tariff change over time.
Related
Related terms
- Less-Than-TruckloadLess-than-truckload (LTL) is freight shipping in which several shippers' shipments share one trailer, each...Glossary
- Freight ClassFreight class is the category from 50 to 500 that the National Motor Freight Classification assigns to a...Glossary
- HundredweightA hundredweight (CWT) in U.S. freight is 100 pounds; LTL base rates are commonly quoted per hundredweight.Glossary
- Accessorial ChargeAn accessorial charge is a fee added to the base freight rate for extra services or events, such as...Glossary
- NMFCThe National Motor Freight Classification (NMFC) is the standard, published by the National Motor Freight...Glossary
- Freight DensityFreight density is the weight of a handling unit divided by the space it occupies, usually stated in pounds...Glossary
Related questions
- Why Was My LTL Shipment Reclassified?Because the carrier found that the class, weight or description on the bill of lading did not match the...Answer
- LTL vs. FTL: Which Should You Use?Use LTL when your freight fills only part of a trailer and can be handled at terminals along the way; you pay...Answer
Sources
- Georgia Institute of Technology, ISyE course materials, “LTL Module 1 (training white paper, Horizon Logistics, 2010),” Industry training paper. Published 2010. Accessed September 30, 2026.
- FedEx Freight, “FedEx Freight 100-Y Rules Tariff (effective January 5, 2026),” Carrier rules tariff. Published January 5, 2026. Accessed September 30, 2026.
- U.S. Energy Information Administration, “Gasoline and Diesel Fuel Update,” Government data. Accessed September 30, 2026.
- DAT Freight & Analytics, “How to Calculate LTL Freight Rates,” Industry publication. Published August 7, 2023. Accessed September 30, 2026.
- NMFTA Help Center, “Classification FAQ: What factors determine NMFC codes?,” Industry standards body. Accessed September 30, 2026.
General operational information, not legal, customs or regulatory advice. Rules and rates change; confirm current requirements with the agency, carrier or contract that governs your shipment.