Tuesday, November 15, 2005

"FREE" Freight Shipping

As most shipper know, within each LTL carrier's rate group there is a weight (referred to as "weight break") where it is cheaper to rate the shipment at the lowest weight provided for in the next- heaviest weight group at the rate assigned to that weight group. In other words, you can add weight to a shipment until you reach the lowest weight in the next-heaviest weight group, and not pay an extra cent for any of that added weight.

Weight breaks vary, not only according to distance, but by weight groups as well. In addition, they can vary from carrier to carrier. In one example of a class 70 shipment from Massachusetts to Los Angeles, the weight break on shipments weighing between 5,000 and 9.999 pounds is 8.296. Once you hit that weight, you can throw in an extra 1,734 pounds with no increase in the freight charges.

By making your sales and purchasing people aware of the deficit-weight aspect of motor carrier LTL pricing, you could open up opportunities for them to sell (or order) in greater quantities than they might otherwise do, with no added freight charge. It's a powerful incentive.