Understanding LTL Freight Class Rates

Understanding LTL Freight Class Rates

Understanding LTL Freight Class Rates

Befuddling. Nonsensical. Jibberish. If you’ve ever configured Carrier Rates or glanced at a Czarlite, you’ve probably noticed all discombobulated FreightClass IDs, which are used to sort and identify LTL Carrier rates.

Within LTL Carrier Rate Matrixes, abbreviations like L5C or M30M are typically assigned to classes without any translation guide or key and it becomes the consultant’s ability to translate these terms into functional information for system upload. So…What does it all mean? To make sense of these LTL abbreviations, you simply need to break them down into three parts: the first letter, the number, and the last letter.

-The first letter is one of two comparative operators: (L)ess than or (M)ore than.

-The number is the multiplication factor.

-The last letter is a Roman numeral to be multiplied, typically either: (C)entum = 100 or (M)ille = 1000.

Therefore, if we put altogether using our examples: L5C is literally saying “Less than 5 * 100” or “<500” while M30M is literally saying “More than 30 * 1000” or “>30,000.” Since there is no break within AX that is defined by “>30,000” this class is typically changed to a “Less than” statement from the next break, in this case, “Less than 40,000” or “<40,000.” This is because LTL rate breaks are set up in a “More than x, but less than y” fashion.

With that, if you can remember the three parts of an LTL Freight Class: Operator, Multiplier, and Numeral, the mystery of these abbreviations should disappear and Freight Class rates should never again be lost in translation.

  • Freight Classes are confusing
  • Freight Classes Abbreviations are made up of three parts
  • First Letter – Comparative Operator: (L)ess than or (M)ore than
  • Numbers – Multiplication factor
  • Roman Numeral – (C)entum = 100 or (M)ille = 1000
  • Remember: “More than” freight classes will be represented as “Less than” for the next break

International Lonestar

Above: International Lonestar — a truck that might carry LTL Freight

 

LTL Carrier Rate Matrix

Above: LTL Carrier Rate Matrix highlighting Freight Classes

 

The first picture is included for visual appeal. The second for functional reference.

 

 

 

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