How Do LTL Carrier Tariff Rules Work?

What are LTL Carrier Tariffs?

How are LTL Carrier Tariffs Created?

Carriers create LTL tariffs by analyzing the costs of transporting goods and setting a base rate that covers those costs. They also consider market demand and competition when setting their rates.

After determining their rates, carriers file their tariffs with the Surface Transportation Board (STB). This federal agency oversees transportation regulations and ensures that motor carrier tariffs are reasonable and non-discriminatory.

History of LTL Carrier Tariffs

LTL carrier tariffs have significantly evolved over the years. In the past, less-than-truckload carriers charged whatever rates they deemed appropriate, leading to exorbitant, unregulated prices.

In 1980, Congress passed the Motor Carrier Act, deregulating the trucking industry and allowing more competition among carriers. This decreased rates and increased service quality.

Since then, LTL carrier tariffs have continued to change. In 1995, the STB required carriers to publish their rates on their websites, allowing shippers to easily compare rates and choose the best option.

In 2010, the STB mandated that carriers disclose all accessorial charges on their bills of lading. This rule prevented carriers from surprising shippers with additional fees after delivery.  Today, LTL carrier tariffs continue to evolve. Carriers use technology to optimize operations and reduce costs, leading to new pricing models like dynamic pricing, which adjusts rates in real-time based on market demand.

Shippers Have Many More LTL Rating Options!

LTL carrier tariffs are crucial in the shipping industry. They govern the relationship between carriers and shippers, ensuring rates are reasonable and non-discriminatory. Over the years, LTL carrier tariffs have evolved from unregulated rates to competitive rates with increased transparency. As the industry grows, shippers and logistics managers need to stay updated on the latest changes to LTL carrier tariffs.

Shippers partnering with award-winning freight broker TLI gain access to various contract types, including:

• Blanket LTL contracts
• Customer Specific Pricing (CSP)
• Point to Point
• Density Based pricing
• Dynamic Based pricing
• Load to Ride

As an industry-leading third-party logistics (3PL) company with over 30 years of experience, TLI's Logistics Services can help you navigate LTL carrier tariffs.

For more information on shipping with TLI, including hazardous materials, heavy machinery, metal and mining, chemicals, and more, click here!