CWT (Per Hundredweight)
A pricing unit used in LTL and partial truckload shipping where the rate is quoted per 100 pounds of freight. CWT rates are combined with freight class, origin, destination, and applicable discounts to calculate the total shipping cost. This pricing method allows carriers to charge proportionally based on weight.
Real-World Example
An LTL carrier quotes a rate of $18.50 per CWT for class 70 freight from Atlanta to Miami. A 2,000 lb shipment would have a base linehaul charge of $370 (20 × $18.50).
Why CWT (Per Hundredweight) Matters for Shippers
Freight pricing is rarely straightforward. Knowing how CWT (Per Hundredweight) works gives you leverage when negotiating rates, helps you spot hidden fees on invoices, and allows you to budget more accurately. Shippers who understand pricing mechanics are better equipped to compare quotes apples-to-apples and avoid costly surprises at delivery.
Common Questions About CWT (Per Hundredweight)
How is CWT (Per Hundredweight) calculated in freight shipping?
CWT (Per Hundredweight) in freight is typically calculated based on a combination of distance, weight, freight class, equipment type, and current market conditions. Additional factors like fuel surcharges, accessorials, and lane-specific supply and demand also play a role. Ask your broker for a transparent rate breakdown.
Can I negotiate CWT (Per Hundredweight) with my carrier or broker?
In most cases, yes. Understanding how CWT (Per Hundredweight) is structured gives you the knowledge to negotiate effectively. Volume commitments, flexible pickup windows, and consistent lane history all strengthen your negotiating position.
How can I reduce costs related to CWT (Per Hundredweight)?
Start by understanding exactly what goes into CWT (Per Hundredweight), then look for optimization opportunities: consolidating shipments, adjusting pickup/delivery windows, improving packaging to reduce freight class, or committing to consistent volumes. A good freight broker will help you identify these savings.
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