Take advantage of LTL weight breaks
By Ray Bohman -- Logistics Management, 8/1/2006
Just about every less-than-truckload (LTL) carrier that is party to the National Motor Freight Classification (NMFC)—nearly 1,000 in number—publishes its own scale of class rates or uses rate bureau's class-rate scales that are based on NMFC classification ratings (classes).
Most class-rate scales have six weight breaks that provide for lower rates per 100 pounds as the weight of the shipment increases. They are shown below:
| Weight Break | Tariff Symbol |
| 0–500 lbs. | LC5 |
| 500–999 lbs. | SC |
| 1,000–1,999 lbs. | 1M |
| 2,000–4,999 lbs. | 2M |
| 5,000–9,999 lbs. | 5M |
| 10,000–19,999 lbs. | 10M |
I decided to check one major LTL carrier's class-rate scale to determine how much rates per 100 pounds fall when a shipment’s weight bumps it up to the next-heavier weight break. For purposes of illustration, I used class rates published by this carrier that apply from Atlanta, Ga., to Memphis, Tenn., for five different classes I picked at random. The class rates showed the following percentage reductions as the shipment moves from one weight break to the next-heavier weight break:
Class |
LC5 |
SC |
1M |
2M |
5M |
10M |
200 |
-- |
8.48% |
21.89% |
18.58% |
20.85% |
14.89% |
150 |
-- |
8.48% |
21.90% |
18.51% |
20.84% |
14.40% |
100 |
-- |
8.49% |
21.87% |
18.58% |
20.84% |
14.40% |
70 |
-- |
8.80% |
21.90% |
18.57% |
20.83% |
14.42% |
60 |
-- |
8.48% |
21.89% |
18.58% |
20.85% |
14.40% |
As you can see from this illustration, if you ship 500 pounds (which would put your shipment into the “SC” category) rather than 400 pounds, your savings amount to between 8.48 percent and 8.80 percent. If you can increase the weight of the shipment to 1,000 pounds, you’d save an additional 21.87 percent to 21.90 percent. And when you calculate the freight charges for a shipment weighing 10,000 pounds compared to a shipment of the same commodity weighing 500 pounds, the cumulative savings would be a hefty 60.5 percent.
The above savings are before any fuel surcharges are added in. You’ll still be saving money after you add them in: Because fuel surcharges are calculated on a percentage of the total freight charge after discounts are applied, you’ll pay less per 100 pounds for those surcharges, too.
Even figuring in discounts or F.A.K.s (Freight, all kinds), you’ll still save as the weights of your shipments move up into the heavier weight breaks.
It is important to note that the percentage savings shown above may not be the same as those offered by other LTL carriers. This was just one example, but I believe it to be representative of savings other LTL carriers offer.
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