News & Publications

Dimensional Pricing on the Horizon and How Shippers Can Prepare

As we move into 2016 we will see LTL carriers continue to shift towards dimensional pricing.

Traditionally “freight class” has been the primary factor for LTL pricing.  The “class” being the National Motor Freight Classification (NMFC) which identifies a freight class using several factors, including handling and density. The rate a carrier uses is derived from combining the class with weight, distance, and accessorials.

While the news that LTL carriers may being moving towards a new pricing paradigm can be unsettling, there are a few things a shipper can do to mitigate their costs.  If handled properly a shipper can actually end up paying less than they would have under the NMFC class method of payment.

First, it is imperative that shippers learn when dimensional pricing will be used, as this could be different based on which carrier they use.  As a rule of thumb, a shipper may want to consider dimensional pricing for any of the following:

  • Shipment is over 750 cubic feet with a density under 6 PCF
  • Shipment is over 4000 lbs.
  • Shipment is more than 5 standard pallets
  • Shipment takes up more than 10 linear feet of a truck

Shippers will want to make sure that they are packing shipments in a manner which will minimize the volume. It is more impactful than ever to have pallets that are stackable or turnable. Allowing pallets to be stacked or turned will minimize the amount of truck space your shipment takes up.

Finally, exploring new technology in the form of route guides or EDI feeds can enable a shipper to easily look up rates or receive them electronically from carriers.  Access to these rates will increase the control a shipper has over cost and will create an easier path for auditing and invoicing.

If you have any questions about how dimensional pricing might work for you please contact Allyn International at sales@allynintl.com. 

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing and supply chain consulting.  Allyn has a number of best in class solutions to help companies improve their LTL shipping practices and driving down freight costs. 

 

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