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Dimensional LTL Pricing Guide

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Class Rating Relationship with Density

One of the Primary Pricing Elements of LTL Pricing is Density

Expanding Number of NMFC Classifications are now

Density Based
  • Practically all NMFC Groups have one or more items that are density based
    • Common Groups with Density Based Rating:
Today’s LTL Costing Models are Quite Sophisticated
  • Historically Based and Driven by Lane Specific Activity
  • Lane Specific Pricing vs. Blanket Discount Levels
LTL Density Calculation
  • The Total Dimensions of the Packaging Determine Density

Dimensional Direction

“The LTL Industry is no longer focused on cube utilization but density and stowability.”

“The desire to secure shipments with freight density of 15 lbs or greater drives a carriers line haul and pickup and delivery operations to a positive margin position. Shippers with desirable packaging and high density shipments will benefit in the world of dimensional pricing.”

Dimensionalizing the Shipper
  • Automation of Density Calculations
  • True Shipment Characteristics Drive Pricing
  • The Push for Shipment Separation in LTL Loading Practices Drive Lower Claim Ratios and Less Delivery Exceptions
    • LTL Trailer Racking
    • Improved Handling and Loading Techniques

The Pinch on LTL Volume

“LTL Carrier tariff rules focused on defining LTL Volume shipments are now enforced throughout their operations in order to maintain service levels and avoid lane imbalances with equipment.”

Defining Volume Characteristics
  • Linear Foot: Space allocated to a shipment loaded by the shipper
    • Many volumes are defined in as little as 12 feet or greater
  • Packaging: “Do Not Stack”
    • Pallets labeled as do not stack are defined as 96” in height
  • Density
    • Low density shipments greater than 750 cuft fall into cubic capacity rulings to meet minimum density requirements

The Unknown Variable in LTL Dimensional Pricing

“Stowability has become a greater factor as carriers review packaging, ease of loading and delivery of Shipments within their network. Utilization of the preferred LTL Trailer Footprint will assist shippers in driving lower costs to ship their products.”

Defining the Shipment Footprint
  • Space: 40 x 48 x 48
    • Allows for racking from the carrier
    • Utilizes the entire LTL Space Footprint
  • Space: 40 x 48 x 96
    • Maximum LTL Footprint