How to Negotiate LTL Minimum Charges

file000417094001A shipper might wonder how their shipping prices for LTL (less than truckload) are determined. There are numerous factors that shape an LTL freight quote, including the destination, the commodity, the size and the weight. If the weight of your shipment is under about 500 pounds, then you might have to pay the Absolute Minimum Charge (AMC). In trucking, this is also referred to as the minimum floor charge. This is the lowest price a carrier will offer for LTL shipping. There are usually no additional discounts available when you are paying the Absolute Minimum Charge. The reason for the existence of the Absolute Minimum Charge is because of the higher cost for a carrier to move a small shipment.

There is some good news if you encounter the Absolute Minimum Charge. You might be able to negotiate the price with the trucking company. For example, if your LTL shipment has the pickup and destination locations in the same state or same region, then you might be able to ask for a lower price. You could also ask for a volume discount if you cross an international border. Essentially, the more volume for your LTL shipment, then you could get a discounted percentage rate.

If your trucking company refuses to negotiate, then perhaps you should seek out a trusted freight forwarder who has a large network of trucking companies. They can locate a carrier for you who might be willing to negotiate. That is the best way to get a better LTL rate when you encounter the Absolute Minimum Charge.

This entry was posted in Trucking. Bookmark the permalink.