How LTL freight rates are actually calculated

An LTL quote looks like one number, but it’s built from several moving parts. Understanding them is how you spot a good rate — and why two shippers moving identical freight often pay very different amounts.

1. The base rate (class × weight break)

Every carrier publishes a base rate per hundredweight (per 100 lbs, or CWT) that depends on your freight class and your lane. Rates step down as weight goes up — these are weight breaks. Move into the next weight break and your cost per pound drops, which is why adding a little weight sometimes lowers your total.

2. The discount

Almost no one pays the published base rate. Carriers apply a negotiated discount — often 50–80% — off that base. Your discount depends on your volume and relationship, which is exactly why a broker with network pricing can beat what a single shipper is quoted directly.

3. FAK (Freight All Kinds)

An FAK arrangement lets mixed freight of several classes be rated at one agreed class. If you ship a range of classes, an FAK can simplify billing and lower cost on higher-class items.

4. Fuel surcharge

A fuel surcharge is a percentage added on top of the discounted linehaul, updated regularly against a national diesel index. It’s standard on every LTL invoice — worth confirming it matches the carrier’s published table for your ship date.

5. Accessorials

Accessorial charges are add-ons for anything beyond a standard dock-to-dock move — liftgate, residential, inside delivery, limited access, and more. These are the most common source of a quote and an invoice disagreeing.

6. The minimum charge

Every lane has an absolute minimum charge (AMC) — the floor no shipment prices below, however small. Very light shipments are usually priced at this minimum.

Why two shippers pay different amounts

Because pricing is negotiated per carrier, the same pallet on the same lane can be priced very differently across carriers on any given day. That’s the entire case for comparing carriers on one screen: you see tariff, dynamic, and volume pricing side by side and take the best fit instead of the first number.