Tips for Accurate LTL Pricing Management
Many years ago, I received a valuable lesson in LTL freight pricing about carrier-shipper communication. It’s simple... make sure the price you agree to is right the first time.
Effective communication enables shippers to build better partnerships with their carrier and ensures success. No one wants an “oops moment" because an important pricing component was left out.
Accuracte pricing matters. Having thorough conversations when establishing your pricing contract is the first step in creating a strong partnership. Informing the LTL carrier of all your key shipping needs will help guarantee an accurate cost-analysis of your business and that your account’s published tariff includes all the required pricing provisions.
What Are the Benefits of Accurate Pricing?
- Competitive freight rates tailored to your shipping needs
- Planned freight costs for more precise budgets and LTL cost management
- Preventing unexpected charges and fostering trust in business partnerships
- Providing carrier with accurate shipment specifications for seamless shipping
Here is an example I once experienced early in my career. A shipper in Greensboro, N.C. routinely used Old Dominion. On occasion, their shipments required repalletization, carton by carton, to ensure the integrity of the freight in transit. The enormous amount of dock labor needed to complete this task and a change in the shipment’s density was not accounted for in the pricing agreement. This created a large discrepancy between the rate the customer was expecting and the actual amount owed on their invoice.
The lesson from this story is to always communicate with your carrier, ask questions, and get a detailed understanding of exactly what you and your customers need. This ensures accurate pricing is published, shipment quotes include all required services, and you know what to expect on your freight invoice.
Information your carrier needs when establishing a pricing agreement:
- Shipper location(s)
- Shipping lanes used (by zip code, state, or region)
- NMFC Code and/or Freight Class if known
- Accurate weight(s) and dimension(s) of freight (including packaging)
- Accessorial Services required for pickup or delivery
- Transit time needs (will shipments require Expedited Services?)
- Special handling requirements
- Photos of your freight
Cargo Shorts Podcast Discussion: Accurate Dimensions Affect the Bottom Line
Providing the carrier with correct dimensions for your shipment is one of several factors that attributes to precise pricing and a seamless shipping experience. In this episode of Cargo Shorts, we discuss how exact pallet measurements benefit everyone by improving speed, accuracy, and pricing predictability.
After finalizing a pricing agreement with the carrier, you are ready to start shipping! Once your pricing is established, continue to give your carrier precise specifications for each shipment. This will help you receive accurate LTL shipping cost estimates for individual shipments and prevent discrepancies in shipment invoices.
At OD, we always recommend working with your local Solutions Specialist to assist in getting accurate pricing provisions and rate estimates. As an established customer, you will gain access to our quoting and book shipment tools. Here are some other tips to ensure an accurate LTL estimate.
In our industry, strong relationships and proactive communication are essential. At Old Dominion, we take the time to ask thoughtful questions and collaborate with you to fully understand your shipping needs. This allows us to issue competitive, customized pricing agreements that align with your business goals. When it is time to ship, our team is ready to support you with accurate freight quotes, helping to avoid unexpected charges. From your first LTL shipping cost estimate to final delivery, Old Dominion is committed to providing the tools, expertise, and seamless service needed to ensure an exceptional customer experience.