Editorial · August 20, 2023
LTL Freight Shipping: How Rates and Classes Work
LTL freight shipping moves a load that is too big for a parcel service and too small to fill a whole truck. A quote for it rests on four things: the freight class, the weight, the density and any extra services. This guide explains each one in plain words so a quote makes sense before you accept it.
What LTL means and how it works
LTL stands for less than truckload. It covers freight sized between a parcel and a full truckload. Parcel carriers usually handle pieces under about 150 pounds. Full truckload carriers rent out a whole trailer to one shipper. LTL sits in the middle, so your pallets share a trailer with freight from other shippers.
Most LTL carriers run a hub and spoke network. A local terminal collects freight from shippers in its area. The freight then moves to a larger hub, where it is sorted by destination. Because of this, pickups usually happen in the afternoon and deliveries in the morning. Transit time depends on how many times the freight is sorted, not only on distance. Freight that is sorted once may arrive the next business day. Freight that needs more stops can take up to ten days.
The big saving is cost. You pay for a share of the trailer instead of the whole thing. Pallets and crates protect it best, and carriers prefer a shipment with as few separate pieces as possible.
Freight class: the label that sets the price tier
Freight class is a grade for your goods. In the United States it comes from the National Motor Freight Classification, or NMFC. The National Motor Freight Traffic Association publishes it. The NMFC sorts goods into 18 classes, from class 50 at the low end to class 500 at the high end.
Four traits decide the class: density, handling, stowability and liability. Density is how tightly the goods pack their space. Handling covers how easy the goods are to lift and move. Stowability covers how well they fit with other freight. Liability covers how likely they are to be stolen, damaged or to damage other freight. Together these traits describe how hard a product is to transport.
As a rule, a lower class number means a lower price tier, and a higher number costs more per pound. The NMFC is also a standard that carriers and shippers use to start a price talk. It does not set the final price. Each carrier still publishes its own rates and discounts.
If you cannot tell which class fits your product, ask. The association's classification experts give an opinion on the item number they think applies. The opinion covers one article per request, it depends on the details you send, and it is not legally binding.
Density: how to work it out
Density is the weight of the shipment divided by the space it takes up. The result is in pounds per cubic foot.
Here is the method, step by step.
- Measure the length, width and height of the shipment in inches, at the longest, widest and tallest points.
- Multiply the three numbers to get cubic inches.
- Divide by 1,728 to get cubic feet.
- Weigh the whole shipment as it will ride, with pallet and wrap.
- Divide the weight in pounds by the cubic feet.
A worked example from a freight guide uses a shipment of 44 by 48 by 57 inches. That is 120,384 cubic inches, or 69.66 cubic feet. At 957 pounds, the density is 13.73 pounds per cubic foot. The guide places that shipment in class 85.
Extra service fees that change a quote
The base rate covers pickup from a dock and delivery to a dock. Anything beyond that is an extra service, often called an accessorial. These are billed as a flat fee or as a rate per hundred pounds, and they can raise a quote a lot.
- Liftgate. You need one when the site has no freight dock or forklift. A liftgate is a hydraulic platform that lowers freight to street level. In 2021, one carrier listed a range of $185 to $450 and another $75 to $350, set by weight with a minimum and a maximum.
- Residential. Homes, apartment complexes and dormitories count as residential, and so does a business run out of a home. Carriers tend to rely on the address type the Postal Service lists.
- Limited access. This covers sites with no walk-in hours, no dock, no one to receive the freight or a security checkpoint. A driver can make three to five stops in a business district in the time of one limited access stop.
Each carrier writes its own rules in a document called a rules tariff, and the tariffs change several times a year. The prices in them are list prices, so you may be able to negotiate the services you use most. A tariff beats any summary, so read the one that applies to your carrier before you book.
Reclassification and rebills
When freight reaches a terminal, it is weighed and checked against the paperwork. All LTL freight can be inspected, though not every shipment is. If the weight, size or description does not match, the carrier can correct it and send a new bill. That can mean a higher class and a higher price than your first quote.
The NMFC includes the Uniform Straight Bill of Lading and rules for billing disputes, so the paperwork you sign matters. Keep it accurate. List the class, the NMFC item number, the real weight and the number of pieces. If you disagree with a correction, keep your measurements and photos as proof.
A short checklist before you ask for a quote
- Pack on a pallet or in a crate, and shrink wrap loose boxes into one unit.
- Measure and weigh the full shipment, pallet included.
- Work out the density and find the class and NMFC item number for your product.
- Say whether the site is residential, has no dock or has limited access.
- Ask for the carrier's rules tariff and check each service fee against it.
- Write the same details on the bill of lading that you gave for the quote.