LTL Freight Tariffs: What You Need to Know
There is much to consider when a shipper forms a relationship with a carrier. Like in any relationship, both sides need to consider what the other side desires and how much they can give. Shippers must determine if the carrier’s base rate, fees, and additional services are right for their business, while the carrier must decide if they can handle the load.
The relationship between carriers and shippers can be as dynamic or tenuous depending on how communicative and responsive both sides are. Different types of contracts and agreements can be made, but carriers like to use freight tariffs, also known as carrier tariffs.
These are used for less-than-truckload (LTL) shipments since full truckloads have their own tariffs and fees. LTL freight tariffs outline the relationship between carrier and shipper, detailing rates and charges for transporting LTL freight. They are necessary fees shippers will pay to help cover the shipment while compensating the carrier and driver.
If you ship LTL, you should know what these freight tariffs are and how they affect your shipping rate.
Why do Carriers Use LTL Freight Tariffs
Before 1980, carriers could charge shippers whatever they wanted for shipping. There was no standard rate for them to follow; they could make up whatever price they saw fit, and shippers would have no choice but to pay for the lowest rate they could find.
That changed when the Motor Carrier Act was passed in 1980, deregulating the trucking industry and standardizing rates. This created competition amongst carriers, so many had to decrease their rates and increase the quality of their services.
Since then, other changes have been made to ensure carriers present fair, transparent offerings to shippers. For example, in 1995, carriers were ordered by the Surface Transportation Board (STB) to publish their rates on their websites so shippers could compare with other carriers; in 2010, carriers were required to disclose accessorial charges on all Bill of Ladings (BOLs).
Today, technology has evolved LTL tariffs to the 21st century. Carriers use unique software to help shippers decide on their rates, such as using new models like dynamic pricing. This pricing system uses real-time market demand to determine a shipment’s base rate. 3PL providers like FreightCenter also use comparison software to get multiple quotes from carriers instantly.
Types of LTL Freight Tariffs
The type of LTL freight tariffs a shipper pays largely depends on your chosen carrier and their services. Governments impose standard tariffs on goods that cross international borders such as taxes and duties. Similarly, LTL freight tariffs are determined by the carriers, who set their own rates and fees to cover the costs associated with transporting LTL goods.
However, LTL freight tariffs can’t just be imposed on shippers. The STB regulates the economics of different transportation modes, including rail and truck. Carriers file their tariffs with the STB and must get them approved before implementing them for their customers. This ensures carriers act in good faith towards shippers and don’t take advantage of their naivety.
Every carrier has their own unique tariffs, but here are some of the most common ones:
- The base rate
- Accessorial charges (liftgate, white glove services, etc.)
- Fuel surcharges
- Lumper fees
- Late or rescheduling fees
- Additional charges
Shippers are told upfront about many of these charges while booking their shipments; however, some are hidden fees that shippers don’t know until it is too late. This is why learning about your carrier’s specific LTL freight tariffs is essential when beginning a relationship with them, as knowing what you will have to pay can alter or terminate your agreement with the carrier.
How to Learn About Your Carrier’s LTL Freight Tariffs
Since the Motor Carrier Act was passed, LTL freight tariffs have turned the tide of carrier-shipper relationships. Carriers can no longer overcharge shippers without their knowledge and must be transparent and open about pricing. Shippers, meanwhile, can fully understand what they’re being charged for and calculate their total spending via the carrier’s published rates.
Unfortunately, carriers have found ways to be sneaky about how shippers can find the published rates. They may hide them on a page inaccessible from the homepage or force you to make an account on their website before seeing the rates.
Not all carriers do this; some have their rates right where you can see them, though they may call it their “rules tariff” (like Estes does on their 90-page rules and regulations document) or “carrier tariff.” However, some make finding a list of LTL freight tariffs impossible without turning it into a scavenger hunt.
Many carriers list their tariffs under a section on their website labeled “resources.” If you can’t find a direct link on their website, contact your carrier by email or phone and request their tariff list. By law, they must provide it or point you where you can find it on their website.
Remember: if you are booking your shipment via a 3PL provider, they will not have a tariff list for you. The carrier, not the 3PL, issues LTL freight tariffs. If you are having trouble finding the carrier’s tariff list, your 3PL freight agent can assist you in either finding their list for you or contacting them directly.
Learn More About LTL Freight Tariffs with FreightCenter
LTL freight tariffs are not meant to make you spend more. These are expenses that are necessary for transporting LTL shipments safely and efficiently. However, carriers may not be as upfront about the costs you must pay as they should be.
As a 3PL provider, FreightCenter is dedicated to providing quality service. That’s why we aim to be transparent about every aspect of your shipping experience. If the carrier doesn’t offer their list of LTL freight tariffs or you can’t find it, we can ask them on your behalf or assist you in finding their resources page to get their tariff list.
Do you need more information or have any questions about LTL freight tariffs? Call one of our knowledgeable agents at (800) 716-7608, or try our free quote tool on our website to see what an initial quote from FreightCenter’s network of trustworthy carriers looks like. We’ll help you get the best deal for your LTL freight!
