How to Lower Your LTL Freight Costs: Tips for Logistics Managers

Strategies to Reduce Freight Spend LTL freight is complex, with base rates, discounts, fuel surcharges, and accessory fees combined.

1. Optimize Accessorial Fees Accessorial fees can double your freight bill. Plan ahead to avoid them: * **Liftgate Surcharges**: If the receiver does not have a loading dock or forklift, you must request a liftgate truck. Ensure the destination actually needs this before booking. * **Limited Access Fees**: Schools, military bases, construction sites, and remote farms carry expensive delivery fees. * **Residential Delivery**: Deliver to a business dock whenever possible to avoid residential fees.

2. Negotiate FAK (Freight All Kinds) Classifications If you ship products of various classes, negotiate an **FAK** agreement with carriers. An FAK allows you to ship items of different classes (e.g. classes 70 through 150) under a single flat rate class (e.g. Class 100), simplifying billing and lowering costs.