LTL (less-than-truckload) freight pricing is more complex than FTL because you're not paying for a whole truck, you're paying for a share of the truck based on your shipment's characteristics. Understanding what drives LTL costs helps you make better shipping decisions and avoid the pricing surprises that catch many shippers off guard.
What determines LTL freight cost
Freight class (NMFC classification)
The National Motor Freight Classification system assigns a freight class (50-500) to every commodity based on density, handling difficulty, stowability, and liability. Lower class numbers (higher density, easier to handle) get lower rates. Higher class numbers (lower density, fragile, hazardous) get higher rates.
Class 50 is the lowest, dense, durable freight like steel or sand. Class 500 is the highest, low-density, high-value, or fragile freight like ping pong balls or gold dust. Most general freight falls between Class 70 and Class 200.
Getting your freight class right is critical. Misclassifying your freight can result in reclassification charges from the carrier, they'll weigh and measure your shipment at the terminal and adjust the class (and the rate) if it doesn't match what you declared.
Weight
LTL rates are quoted per hundred pounds (CWT). Heavier shipments get lower per-CWT rates because they're more efficient for the carrier to handle. But total cost still increases with weight, you just get a volume discount.
There are also weight break points where it's actually cheaper to declare a higher weight. For example, if 800 lbs at Class 100 costs $1,200, but 1,000 lbs at Class 100 costs $1,100 due to the next weight break, you'd save $100 by bumping to the higher weight bracket. A good freight broker catches these opportunities automatically.
Distance and lane
Longer distances cost more, but the per-mile rate decreases with distance. The specific origin-destination lane also matters, high-density trade lanes (Chicago to Atlanta) have more competitive rates than low-density lanes (rural Montana to rural Maine) because more carriers compete on popular routes.
Accessorial charges
These are the charges that surprise unprepared shippers. Common LTL accessorials include liftgate service (if the pickup or delivery location doesn't have a loading dock), residential delivery, inside delivery, appointment scheduling, limited access locations, reweigh and reclassification fees, and hazmat handling surcharges.
Accessorials can add 20-40% to the base LTL rate. Knowing which ones apply to your shipment before you book prevents invoice surprises.
Market conditions
LTL rates fluctuate with demand. During peak seasons (holiday shipping, produce season) and capacity-constrained periods, LTL carriers raise rates through general rate increases (GRIs) and surcharges. Off-peak periods may offer more competitive pricing.
Strategies to reduce LTL costs
Classify your freight accurately. Reclassification fees are expensive and avoidable. Know your freight class before you ship.
Consolidate shipments. Two 500-lb shipments cost more than one 1,000-lb shipment to the same destination. Consolidating orders reduces per-unit shipping costs.
Optimize packaging density. Higher density means a lower freight class and a lower rate. Reducing package dimensions or eliminating unnecessary void fill can move your shipment to a more favorable class.
Consider partial truckload. For shipments over 5,000 lbs, partial TL is often 20-30% cheaper than LTL with faster transit and less handling.
Negotiate volume discounts. Consistent LTL volume gives you leverage to negotiate discounted rates with carriers or through your freight broker.
Use a freight broker who quotes multiple carriers. LTL rates vary significantly between carriers on the same lane. A broker who quotes 5-10 carriers on every shipment finds you the best rate automatically.
How Total Connection handles LTL
We quote multiple LTL carriers on every shipment, identify the best rate for your lane and freight characteristics, and flag accessorial requirements before they become invoice surprises. We also compare LTL rates against partial truckload and FTL to make sure you're using the most cost-effective mode.
Call 732-817-0401 or request a quote.
Frequently Asked Questions
How is LTL freight priced?
By freight class, weight, distance, and accessorial charges. Freight class (50-500) is based on density, handling difficulty, stowability, and liability. Rates are quoted per hundred pounds (CWT) with discounts at higher weight brackets.
What is freight class?
An NMFC classification (50-500) assigned to every commodity based on its characteristics. Lower classes (dense, durable freight) get lower rates. Higher classes (light, fragile, hazardous freight) get higher rates. Most general freight falls between Class 70-200.
What are LTL accessorials?
Additional charges for services beyond standard pickup and delivery, liftgate, residential delivery, inside delivery, appointment scheduling, limited access, reweigh/reclassification, and hazmat surcharges. They can add 20-40% to the base rate.
When is partial truckload cheaper than LTL?
For shipments over 5,000-8,000 lbs, partial TL is frequently 20-30% cheaper than LTL with faster transit and less handling. Always compare both options for mid-sized shipments.
