LTL Rate Formula:
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Definition: This calculator determines the actual freight rate by applying a discount percentage to the base tariff rate.
Purpose: It helps shippers and logistics professionals estimate their actual transportation costs for Less-Than-Truckload shipments.
The calculator uses the formula:
Where:
Explanation: The tariff rate is reduced by the discount percentage to calculate the actual rate you'll pay.
Details: Accurate rate calculation helps in budgeting, cost comparison between carriers, and identifying potential savings opportunities.
Tips: Enter the carrier's tariff rate and your negotiated discount percentage (default 30%). Discount must be between 0-100%.
Q1: What's a typical LTL discount range?
A: Discounts typically range from 20-70% off tariff rates, depending on volume, carrier, and market conditions.
Q2: How do I find my tariff rate?
A: Tariff rates are published by carriers or can be obtained through freight quotes and rate calculators.
Q3: Does this include accessorial charges?
A: No, this calculates linehaul rates only. Additional fees (fuel surcharge, liftgate, etc.) would be extra.
Q4: Why would my discount percentage change?
A: Discounts may vary based on shipping volume, lane density, contract terms, and market fluctuations.
Q5: How often should I renegotiate discounts?
A: Typically annually, or whenever your shipping patterns or market conditions change significantly.