LTL Freight Costs: Complete Guide

LTL freight cost is the price a carrier charges to move a shipment between 150 and 15,000 pounds that does not fill an entire trailer. The rate is built from freight classification, weight, distance between zip codes, fuel surcharge, and accessorial charges. US domestic LTL pricing follows the National Motor Freight Classification (NMFC) system and a tariff-and-discount model where most shippers pay 50 to 80 percent off published rates.

What LTL Means and When It Applies

Less Than Truckload (LTL) is the mode used when a shipment occupies 1 to 6 pallets, weighs roughly 150 to 15,000 pounds, and shares trailer space with other shippers. Below 150 pounds, parcel carriers like FedEx Ground and UPS handle the package. Above 15,000 pounds or 12 pallets, full truckload (FTL) becomes cheaper per pound. Between 5,000 and 15,000 pounds, carriers offer Volume LTL or Partial Truckload at hybrid rates that sit between standard LTL and FTL.

An LTL shipment moves through hub-and-spoke terminals. The carrier picks up the freight, consolidates it at a local terminal, line-hauls it to a destination terminal, and runs final delivery. Every handling event adds cost, which is why LTL pricing is sensitive to packaging, density, and accessorial requirements.

NMFC Freight Class and Density

The NMFC system assigns each commodity to one of 18 classes ranging from 50 (densest, cheapest) to 500 (lightest, most expensive). Density is the primary driver. The formula is:

Density (lb/ft³) = Weight in pounds ÷ (Length × Width × Height in inches ÷ 1728)

The 1728 figure converts cubic inches to cubic feet (12 × 12 × 12). Higher density means lower class and lower price. Approximate density bands:

• Class 50: more than 50 lb/ft³ (bricks, steel rods)
• Class 55: 35 to 50 lb/ft³
• Class 60: 30 to 35 lb/ft³
• Class 65: 22.5 to 30 lb/ft³ (auto parts, books in boxes)
• Class 70: 15 to 22.5 lb/ft³
• Class 77.5: 13.5 to 15 lb/ft³
• Class 85: 12 to 13.5 lb/ft³
• Class 92.5: 10.5 to 12 lb/ft³
• Class 100: 9 to 10.5 lb/ft³
• Class 110: 8 to 9 lb/ft³
• Class 125: 7 to 8 lb/ft³
• Class 150: 6 to 7 lb/ft³
• Class 175: 5 to 6 lb/ft³
• Class 200: 4 to 5 lb/ft³
• Class 250: 3 to 4 lb/ft³
• Class 300: 2 to 3 lb/ft³
• Class 400: 1 to 2 lb/ft³
• Class 500: less than 1 lb/ft³ (ping pong balls, light fixtures)

Stowability, handling, and liability can override the density-only result. Hazardous materials, fragile items, and high-value goods carry surcharges or fixed higher classes regardless of density.

FAK Agreements and How They Lower Cost

A Freight All Kinds (FAK) agreement is a negotiated rate where a carrier groups multiple classes into a single rated class. A shipper that moves classes 70, 85, and 100 may negotiate FAK 70, paying the lowest class for everything in the FAK band. FAK simplifies invoicing and reduces reclassification disputes, which are a frequent source of post-billing adjustments. FAK agreements typically require minimum monthly volume and are common with regional carriers like SAIA, Estes, and R+L Carriers.

Distance, Lane Density, and Zip-to-Zip Pricing

LTL rates are calculated by zip-to-zip pair, not flat mileage. Two factors set the lane price:

• Distance: longer hauls cost more per shipment but less per pound on the line-haul portion.
• Lane density: lanes the carrier already runs daily (LA to Chicago, Atlanta to Dallas) are cheaper than thin lanes into rural zip codes.

Sample base rates (before fuel and accessorials):

• 250 lb shipment, class 70, Los Angeles (90021) to Chicago (60607): $200 to $400
• 1,500 lb shipment, class 70, same lane: $400 to $700
• 500 lb shipment, class 125, into a residential zip: add $150 to $300 in accessorials

Fuel Surcharge and Tariff Discounts

Every US LTL carrier applies a fuel surcharge as a percentage of the base rate, indexed weekly to the Department of Energy (DOE) national diesel average. When diesel sits at $3.80 per gallon, the surcharge is typically 35 to 45 percent of base. Shippers should always quote rates inclusive of fuel.

Carriers publish tariffs (CZAR-Lite, CZ-100, SMC3 Czarlite) but actual paying customers receive 50 to 80 percent discounts off tariff. The discount level depends on volume, lane mix, and contract length. Tariff transparency is real, but the published number is not the price anyone pays.

Accessorial Charges That Inflate the Quote

Accessorials are extra fees for services beyond standard dock-to-dock pickup and delivery. The most common accessorials and 2025 ranges:

• Liftgate (pickup or delivery): $50 to $150
• Residential delivery: $75 to $200
• Inside delivery: $75 to $250
• Limited access location (church, school, military base, prison, farm): $75 to $200
• Construction site delivery: $100 to $250
• Notification before arrival (call appointment): $25 to $75
• Redelivery after failed first attempt: $75 to $150
• Weekend or after-hours delivery: $150 to $400
• Hazmat handling: $50 to $150 plus required documentation

Half of LTL invoice disputes come from accessorials the shipper did not declare at booking. If the destination is a private residence, school, or rural area without a dock, declare it upfront. Carriers reweigh and reclassify in transit, and post-billing accessorials are non-negotiable.

The 2023 Yellow Bankruptcy and Current Capacity

Yellow Corporation filed for bankruptcy in August 2023 and ceased operations, removing roughly 10 percent of US LTL capacity overnight. The market absorbed the freight through SAIA, ABF Freight, Old Dominion Freight Line (ODFL), XPO, R+L Carriers, FedEx Freight, Estes, and TForce Freight (the former UPS Freight unit sold to TFI International in 2021). Rates rose 15 to 25 percent on competitive lanes through 2024 and have since softened. The current market is more concentrated, with ODFL and SAIA leading on service quality and FedEx Freight and XPO competing on price.

How to Reduce LTL Freight Cost

• Measure and weigh accurately. Carrier inspectors reweigh shipments. A reclass from 70 to 125 can double the bill.
• Optimize packaging. Tighter packing increases density and lowers class. Shrink-wrap pallets to a uniform footprint.
• Negotiate an FAK. If you ship multiple classes, push the carrier for an FAK rate.
• Declare accessorials at booking. Surprises become post-billing adjustments at full carrier discretion.
• Compare 4 to 6 carriers per lane. Discounts vary by lane density. The best carrier on a westbound lane is rarely the best on the return.
• Use Volume LTL above 5,000 lbs. Hybrid rates beat both standard LTL and small FTL on this band.
• Audit invoices. Carriers issue weight and inspection adjustments on 5 to 10 percent of bills.

How LTL Pricing Compares to Ocean and Air

LTL uses density-driven NMFC classes and zip-to-zip lanes. Ocean container pricing runs on full container loads (FCL) or less than container loads (LCL) by volume in cubic meters, with rates set by carrier alliances and capacity cycles. For the parallel logic on ocean rate construction, see how shipping lines set freight rates and how port congestion and capacity constraints impact rates. Cross-border lanes between the US and Canada add tariff exposure, covered in how US tariffs impact freight rates and trade costs.

When to Use a Forwarder for LTL

Direct carrier contracts work for shippers with consistent volume on stable lanes. A digital freight forwarder makes sense when lanes shift, when volume is below the threshold for direct carrier discounts, or when international ocean and air freight share the same shipment workflow. Exfreight aggregates LTL volume across SAIA, ABF, ODFL, XPO, R+L, FedEx Freight, Estes, and TForce, books shipments through a single API and dashboard, and audits accessorials before invoicing. See the full Exfreight services overview or get an instant LTL quote at exfreight.com.