Freight glossaryLTLFreight Pricing
Hundredweight (CWT)
Definition
A hundredweight (CWT) in U.S. freight is 100 pounds. LTL carriers quote base rates per hundredweight, so a rate of $20/cwt means $20 for every 100 pounds of billed weight.
In simple English
CWT is short for hundredweight, which is 100 pounds in the U.S. A freight rate written as "$20/cwt" means you pay $20 for each 100 pounds. Divide the weight by 100, then multiply by the rate.
What it means
NIST notes that when "hundredweight" is used unmodified in the U.S., it is commonly understood to mean 100 pounds. It may be called the "net" or "short" hundredweight when it has to be told apart from the British "gross" or "long" hundredweight of 112 pounds.[1] Carrier tariffs use the 100-pound unit. One LTL rules tariff defines CWT as "rate in cents per 100 pounds."[2]
In LTL rate tables, each rate is the charge for 100 pounds of freight. The rate depends on the lane, the freight class and the weight break. As the weight breaks increase, the rate per hundredweight decreases. As the class increases, the rate per hundredweight increases.[3]
Charge = (weight in pounds / 100) x rate per CWT. Then apply discounts, the minimum charge and any accessorials.
What $20/cwt means
A quote of $20/cwt (also written $20 per cwt or $20 per hundredweight) is $20 for every 100 pounds. That is the same as 20 cents per pound. The steps are always the same:
- Take the billed weight in pounds.
- Divide by 100 to get the number of hundredweights.
- Multiply by the rate per CWT.
- Compare the result with the minimum charge and the next weight break, then add accessorials.
| Billed weight | Hundredweights (CWT) | Charge at $20/cwt |
|---|---|---|
| 150 lb | 1.5 | $30.00 |
| 480 lb | 4.8 | $96.00 |
| 1,250 lb | 12.5 | $250.00 |
| 3,600 lb | 36 | $720.00 |
Check the unit in the tariff. Some carrier tariffs state CWT rates in cents, so a rate printed as 2000 would mean 2,000 cents, or $20.00, per 100 pounds.[2] Carriers also use per-CWT pricing for some accessorial charges. One 2026 rules tariff lists a shipper-load or consignee-unload fee of $3.16 per cwt, subject to a $60.00 minimum per shipment.[2] To turn kilograms or other units into pounds before you do the math, use the unit converter.
Weight breaks and minimum charges in LTL
LTL rate tables split weight into bands called weight breaks. One industry training paper lists these common breaks:[3]
| Label | Applies to |
|---|---|
| L5C | Less than 500 lb (1 to 499) |
| M5C | 500 to 999 lb |
| M1M | 1,000 to 1,999 lb |
| M2M | 2,000 to 4,999 lb |
| M5M | 5,000 to 9,999 lb |
| M10M | 10,000 to 19,999 lb |
| M20M, M30M, M40M | 20,000 lb and up (rarely used in LTL) |
Because the rate drops at each break, a shipment just under a break can cost more than one just over it. The alternation clause makes the carrier charge the lower total. The shipment is rated at the next higher break, and the gap between the actual weight and that break is billed as deficit weight.[3]
Small shipments also hit a floor. The discounted charge cannot go below the minimum charge, also called an absolute minimum charge or minimum floor charge.[3] FedEx Freight defines the absolute minimum charge as the minimum charge after all pricing terms are applied. Its 2026 tariff sets it at $254.00 for Priority and $243.00 for Economy shipments, except as otherwise provided.[2] For how class, discounts and accessorials fit together, see how LTL freight is priced.
Short (US) vs. long (UK) hundredweight
| Unit | Pounds | Where used |
|---|---|---|
| Short or net hundredweight | 100 lb | U.S. default; LTL tariffs |
| Gross or long hundredweight | 112 lb | British measure; limited U.S. use |
In the U.K., the Weights and Measures Act 1985 defines the hundredweight as 112 pounds and the ton as 2,240 pounds. It lists them among units that may not be used for trade except as supplementary indications. The same schedule defines a separate unit, the cental, as 100 pounds.[4] NIST says the gross or long hundredweight and ton are used commercially in the U.S. only to a very limited extent, usually in restricted industrial fields.[1]
The gap is 12 pounds per unit, or 12 percent. If an old British document or a foreign quote gives weight in hundredweight, confirm which one it means before you convert it to pounds.
How to say CWT
CWT is written, not spoken. Cambridge Dictionary lists cwt as the written abbreviation of hundredweight and gives the pronunciation /ˈhʌn.drəd.weɪt/, which sounds like "HUN-dred-wayt." The plural is also hundredweight.[5] So "$20/cwt" is said aloud as "twenty dollars per hundredweight." In everyday freight talk many people shorten it to "twenty dollars a hundred."
Why it matters
Most LTL quotes start from a per-CWT rate, so reading CWT correctly is the first step to checking an invoice. The weight on the bill of lading drives the hundredweight count, and a reweigh that adds pounds raises the charge in direct proportion. Knowing where the weight breaks and the minimum charge sit also explains why two shipments of different weights can cost about the same. RapidShips runs a warehouse dock in East Brunswick, NJ, and is not a carrier or broker, so the carrier's tariff and your contract set the actual rate.
Example
Illustrative only, not a real job or quote. A shipper is quoted $20/cwt for a 1,250 lb pallet shipment in one class and lane. 1,250 / 100 = 12.5 CWT, and 12.5 x $20 = $250.00 before discounts. If the discounted result falls below the carrier's minimum charge, the minimum is billed instead.
Illustrative weight break check. A 450 lb shipment has a rate of $40.00/cwt under 500 lb and $34.00/cwt at 500 lb. Rated as is: 4.5 x $40.00 = $180.00. Rated at 500 lb with 50 lb of deficit weight: 5.0 x $34.00 = $170.00. The lower $170.00 applies.
Common mistakes
- Multiplying the rate by the full weight. A $20/cwt rate times 1,250 pounds is not $25,000. Divide the weight by 100 first.
- Ignoring the next weight break. A shipment just under a break may be cheaper rated at the break, with deficit weight added.[3]
- Forgetting the minimum. A low per-CWT rate on a light shipment often ends at the minimum charge.
- Mixing units. Check whether the tariff states rates in dollars or cents, and whether a foreign document means the 112 lb hundredweight.
Related
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Related questions
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Frequently asked questions
What is CWT in freight?
What does $20/cwt mean?
How is hundredweight pricing calculated?
How is CWT pronounced?
Is a hundredweight 100 or 112 pounds?
Sources
- National Institute of Standards and Technology, “NIST Handbook 44 (2026), Appendix C: General Tables of Units of Measurement,” Government standard. 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.
- 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.
- UK Government, legislation.gov.uk, “Weights and Measures Act 1985, Schedule 1 (Definitions of units of measurement),” Statute. Accessed October 14, 2026.
- Cambridge University Press, “hundredweight (Cambridge Dictionary),” Dictionary. Accessed October 14, 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.
