How is LTL freight calculated?

LTL carriers use a rating engine based on the NMFC tariff. Here's how the rate is calculated step by step:

Step 1: Determine chargeable weight

• Weigh the shipment (include pallet weight — typically 35–50 lbs for a standard wood pallet)
• Measure dimensions (length × width × height including pallet)
• Calculate density → determine freight class

Step 2: Apply the base rate
Carriers use a published tariff table (100-series, 500-series, etc.). You look up the rate per 100 lbs (CWT) for the origin/destination zip pair and your freight class.

Example:

• 400 lb shipment, Class 100, Chicago to Dallas
• Tariff rate: $35.50 per CWT
• Base rate: 400 ÷ 100 × $35.50 = $142.00

Step 3: Apply the discount
LTL carriers offer 'discount off tariff' — negotiated discounts of 40–85% off the base tariff are common through freight brokers.

• Example: 75% discount → \$142 × (1 - 0.75) = $35.50

Step 4: Add minimums and accessorials

• Minimum charge per shipment (typically $40–100 after discount)
• Fuel surcharge: typically 15–30% of base freight charge
• Accessorials: residential delivery (+$50–100), liftgate (+$50–150), inside delivery, etc.

Final rate = discounted base + fuel surcharge + accessorials.