Avoid unexpected charges for your LTL shipments
While it may seem like determining the cost of shipping less-than-truckload (LTL) freight should be relatively straightforward, that is not always the case. There are a number of factors that go into the calculation of your shipments, some more intuitive than others.
How is the cost of shipping LTL freight determined?
The first factor that affects the cost of an LTL shipment is the distance. Shipping costs are typically calculated using the distance between the origin and destination of the shipment. The longer the distance, the more expensive the shipment will be. Carriers may charge a fuel surcharge to cover the cost of fuel, which also takes the distance of the shipment into account and increases the price.
The weight of the shipment is another important factor that affects the cost of LTL shipping. Rates generally increase as the weight of the shipment increases (although this is not always the case, which will be explored more below). Heavier shipments may also require specialized equipment, which can add to the cost.
The dimensions of the shipment also play a role in the cost of shipping LTL freight. Carriers typically have a standard size and weight limit for LTL shipments. If a shipment exceeds these limits, it may be subject to additional fees or may require special handling. The size of the shipment can also impact the base cost, as larger shipments take up more space and may require specialized equipment.
Another factor that affects the cost of LTL shipping is the freight classification. The National Motor Freight Classification (NMFC) system is used to classify LTL freight based on its density, stowability, handling, and liability. The classification determines the rate that the carrier will charge for the shipment, with lower classes costing less than higher classes. Density is generally considered to be the primary determining factor for classification, which is why the weight of cargo may not always be directly correlated with the cost of the shipment. One of the most commonly cited examples of freight class 500, the most expensive class, is ping pong balls. While they don’t weigh very much, they are extremely low density. Properly classifying freight is important to ensure that the shipment is billed correctly.
LTL shipping quotes are only as accurate as the information used to calculate them
When you get a quote for a shipment from an LTL carrier, it would seem safe to assume that’s the price you’ll be charged once the shipment is completed. However, this is not always the case. Charges may be added to your freight bill if the cargo’s weight, dimensions, or freight classification are not accurate. Not only will the rates be adjusted to reflect the actual measurements, but a fee for making the change will be charged.
Additional charges, sometimes referred to as freight rebills, will also result from services or special equipment required to complete the delivery. Examples include pickup or delivery at limited access or residential locations, the use of a liftgate to unload cargo where a loading dock or forklift isn’t available, or redelivery fees for freight that is unable to be unloaded when the truck arrives because no one is available to accept it. LTL carriers refer to these services and special equipment as accessorials.
How can I avoid additional charges?
Making sure you have an accurate bill of lading (BOL) with precise measurements and classification of your freight is the first step to avoiding surprise freight rebills. Additionally, inform your carrier of any accessorials that will be required to complete your shipment. Using a tech-enabled 3PL like Koho can help ensure that you’re aware of potential additional charges before you book your shipment. When you make a booking using Koho’s collaborative platform, you’ll find a list of accessorials and, depending on the pickup and delivery locations you provide, they may be automatically suggested.
To learn more about potential hidden charges in LTL shipping, visit gokoho.com. While you’re there, you can get quotes from top LTL carriers for your next shipment.
Avoid unexpected charges for your LTL shipments
While it may seem like determining the cost of shipping less-than-truckload (LTL) freight should be relatively straightforward, that is not always the case. There are a number of factors that go into the calculation of your shipments, some more intuitive than others.
How is the cost of shipping LTL freight determined?
The first factor that affects the cost of an LTL shipment is the distance. Shipping costs are typically calculated using the distance between the origin and destination of the shipment. The longer the distance, the more expensive the shipment will be. Carriers may charge a fuel surcharge to cover the cost of fuel, which also takes the distance of the shipment into account and increases the price.
The weight of the shipment is another important factor that affects the cost of LTL shipping. Rates generally increase as the weight of the shipment increases (although this is not always the case, which will be explored more below). Heavier shipments may also require specialized equipment, which can add to the cost.
The dimensions of the shipment also play a role in the cost of shipping LTL freight. Carriers typically have a standard size and weight limit for LTL shipments. If a shipment exceeds these limits, it may be subject to additional fees or may require special handling. The size of the shipment can also impact the base cost, as larger shipments take up more space and may require specialized equipment.
Another factor that affects the cost of LTL shipping is the freight classification. The National Motor Freight Classification (NMFC) system is used to classify LTL freight based on its density, stowability, handling, and liability. The classification determines the rate that the carrier will charge for the shipment, with lower classes costing less than higher classes. Density is generally considered to be the primary determining factor for classification, which is why the weight of cargo may not always be directly correlated with the cost of the shipment. One of the most commonly cited examples of freight class 500, the most expensive class, is ping pong balls. While they don’t weigh very much, they are extremely low density. Properly classifying freight is important to ensure that the shipment is billed correctly.
LTL shipping quotes are only as accurate as the information used to calculate them
When you get a quote for a shipment from an LTL carrier, it would seem safe to assume that’s the price you’ll be charged once the shipment is completed. However, this is not always the case. Charges may be added to your freight bill if the cargo’s weight, dimensions, or freight classification are not accurate. Not only will the rates be adjusted to reflect the actual measurements, but a fee for making the change will be charged.
Additional charges, sometimes referred to as freight rebills, will also result from services or special equipment required to complete the delivery. Examples include pickup or delivery at limited access or residential locations, the use of a liftgate to unload cargo where a loading dock or forklift isn’t available, or redelivery fees for freight that is unable to be unloaded when the truck arrives because no one is available to accept it. LTL carriers refer to these services and special equipment as accessorials.
How can I avoid additional charges?
Making sure you have an accurate bill of lading (BOL) with precise measurements and classification of your freight is the first step to avoiding surprise freight rebills. Additionally, inform your carrier of any accessorials that will be required to complete your shipment. Using a tech-enabled 3PL like Koho can help ensure that you’re aware of potential additional charges before you book your shipment. When you make a booking using Koho’s collaborative platform, you’ll find a list of accessorials and, depending on the pickup and delivery locations you provide, they may be automatically suggested.
To learn more about potential hidden charges in LTL shipping, visit gokoho.com. While you’re there, you can get quotes from top LTL carriers for your next shipment.
