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How Is LTL Freight Calculated

LTL Freight Cost Formula:

\[ Cost = Weight \times Class \times Distance + Fees \]

lb
miles
USD

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1. What is LTL Freight Calculation?

Definition: This calculator estimates the cost of Less Than Truckload (LTL) freight shipments based on weight, freight class, distance, and additional fees.

Purpose: It helps shippers and logistics professionals estimate transportation costs for partial truckload shipments.

2. How Does the LTL Calculator Work?

The calculator uses the formula:

\[ Cost = \frac{Weight \times Class \times Distance}{100} + Fees \]

Where:

Explanation: The base rate is calculated by multiplying weight, class, and distance, then dividing by 100 (standard LTL rate calculation). Fees are added to this base rate.

3. Importance of LTL Cost Calculation

Details: Accurate LTL cost estimation helps with budgeting, rate negotiation, and comparing carrier options.

4. Using the Calculator

Tips: Enter the shipment weight in pounds, freight class (default 70), distance in miles, and any additional fees. All values except fees must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is freight class?
A: Freight class (50-500) is determined by density, stowability, handling and liability. Common classes are 50 (dense), 70 (machinery), 125 (auto parts).

Q2: How is distance calculated?
A: Carriers use zip code-based distance tables. For estimation, use actual miles or online distance calculators.

Q3: What fees might apply?
A: Common fees include fuel surcharge, liftgate, residential, inside delivery, or storage fees.

Q4: Why divide by 100 in the formula?
A: This converts the rate to dollars per hundredweight (CWT), the standard LTL pricing unit.

Q5: How accurate is this estimate?
A: This provides a baseline estimate. Actual quotes may vary based on carrier, discounts, and exact shipment details.

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