LTL Freight Cost Formula:
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Definition: This calculator estimates the total cost for Less-Than-Truckload (LTL) shipments based on weight, rate, accessorial charges, and fuel surcharge.
Purpose: It helps shippers and logistics professionals accurately estimate transportation costs for partial truckload shipments.
The calculator uses the formula:
Where:
Explanation: The base cost is calculated by weight, then accessorial charges and fuel surcharge are added to determine the total freight cost.
Details: Accurate LTL cost estimation helps with budgeting, rate comparison between carriers, and determining optimal shipment sizes.
Tips: Enter the shipment weight in pounds, rate per hundred weight (default $15.00/cwt), accessorial charges (default $25.00), and fuel surcharge percentage (default 15.5%).
Q1: What is LTL shipping?
A: Less-Than-Truckload (LTL) shipping is for shipments that don't require a full truckload, typically between 150-10,000 lbs.
Q2: What are common accessorial charges?
A: These may include liftgate service, residential delivery, inside delivery, or special handling fees.
Q3: How often do fuel surcharges change?
A: Most carriers update fuel surcharges weekly based on national diesel price indexes.
Q4: What's a typical LTL rate range?
A: Rates typically range from $10-$50 per hundred weight depending on distance, freight class, and market conditions.
Q5: How can I reduce LTL costs?
A: Consider consolidating shipments, optimizing packaging, and negotiating volume discounts with carriers.