Rate Per Hundredweight
The standard pricing unit for LTL freight where the transportation charge is expressed as a dollar amount per 100 pounds (CWT) of cargo. Rate-per-hundredweight pricing accounts for the freight class, weight bracket, origin, destination, and any negotiated discounts. As shipment weight increases, the per-hundredweight rate typically decreases due to weight breaks in the carrier's tariff. This pricing model allows LTL carriers to charge proportionally based on how much trailer space and weight capacity a shipment consumes.
Real-World Example
An LTL quote shows a rate of $22 per hundredweight for a 3,000-lb shipment of class 85 freight. The base linehaul charge is $660 (30 CWT x $22), plus a $119 fuel surcharge (18%) and $75 for liftgate delivery, totaling $854.
Why Rate Per Hundredweight Matters for Shippers
Freight pricing is rarely straightforward. Knowing how Rate 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 Rate Per Hundredweight
How is Rate Per Hundredweight calculated in freight shipping?
Rate 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 Rate Per Hundredweight with my carrier or broker?
In most cases, yes. Understanding how Rate 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 Rate Per Hundredweight?
Start by understanding exactly what goes into Rate 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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