How a freight rate gets built

A freight quote looks like one number. To compare it with another quote, you need to know what that number covers. The same total can buy different equipment, different service and different support.

These are useful parts to understand. They are not a universal four-line invoice, and broker margin may already be included in the quoted charges.

1. Linehaul

Linehaul is the charge for the main transportation service. On a truckload shipment, the route, equipment, timing and available capacity can affect what a carrier will accept. A shipper's quote from a broker also reflects the broker's pricing; it is not necessarily the amount paid to the carrier.

Direction matters. A carrier may value a load that positions its truck near suitable freight differently from one that leaves it with a long empty drive. Equal mileage does not mean equal cost or equal rates.

LTL pricing works differently from buying a whole truck. Weight, dimensions, freight classification, route and the applicable pricing agreement can affect the base charge. Use the right comparison for the mode you are buying.

2. Fuel surcharge

Fuel may be included in an all-in truckload rate or shown separately. A separate surcharge can use a fuel index and an agreed calculation. LTL carriers may apply a percentage under their pricing terms.

Ask whether fuel is included, how a separate surcharge is calculated, and which charges it applies to. Comparing a base rate with an all-in rate can make the base rate look cheaper even when the final total is higher.

3. Accessorials

Accessorials are charges for specified services or conditions beyond the base transportation service. Examples include liftgate service, residential delivery, detention, layover and a change of destination.

A needed service is not automatically an avoidable charge. Accurate pickup and delivery details help the provider include known charges in the quote. Delays or changes after booking may create additional charges.

An invoice can also be wrong. If it differs from the quote, ask which charge changed, what triggered it and what record supports it. For LTL, also check weight, dimensions, classification and the rate used. The invoice does not settle the question by itself.

4. Broker margin

Broker margin is the difference between what the shipper pays and what the broker pays the carrier. If you pay $2,000 and the broker pays the carrier $1,800, the broker margin is $200.

That margin supports the brokerage service, including arranging transportation and handling the load. Its size alone does not show whether the carrier was suitable or the service was good. Nor is every 3PL service priced through this kind of spread; some arrangements use separate fees.

How to ask about a quote

• For the base transportation charge: What is driving the price on this route, for this equipment and pickup window?
• For fuel: Is it included? If not, what calculation applies?
• For a changed invoice: Which line changed, and what supports the charge?
• For room to reduce the price: Would more notice, a different pickup window or another suitable mode change the quote? What service tradeoff comes with that change?

You can also ask directly about the broker's pricing or margin. Do not assume that asking is hostile, or that a vague answer tells you the amount. Judge the explanation alongside the agreed service and actual performance.

The goal is to understand what you are buying and which parts of the price you can meaningfully discuss.

Further reading: Old Dominion's LTL pricing guide and fuel surcharge information. Carrier-specific terms vary.

Optional freight help

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