1. What is an LTL Freight Savings Calculator?

Definition: This calculator determines the savings achieved when using discounted LTL (Less Than Truckload) freight rates compared to standard rates.

Purpose: It helps logistics professionals and shippers quantify cost savings from negotiated rates or special programs.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Savings \) — Amount saved (USD)
• \( Standard\ Rate \) — Published or non-discounted rate (USD)
• \( Discounted\ Rate \) — Negotiated or special program rate (USD)

Explanation: The difference between what you would normally pay and what you actually pay represents your savings.

3. Importance of Freight Savings Calculation

Details: Tracking LTL savings helps evaluate carrier performance, measure negotiation effectiveness, and justify logistics decisions.

4. Using the Calculator

Tips: Enter both the standard rate and your discounted rate in USD. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good savings percentage?
A: Typical LTL discounts range from 30-70% off standard rates, depending on volume and negotiation.

Q2: Should I include accessorial charges?
A: For accurate comparisons, include all applicable fees in both rate calculations.

Q3: How often should I calculate these savings?
A: Monthly calculations help track performance; quarterly for contract evaluations.

Q4: Can I calculate annual savings?
A: Yes, multiply the per-shipment savings by your annual shipment volume.

Q5: What if my discounted rate is higher?
A: The calculator will show negative savings, indicating you're paying more than standard rates.