Freight is one of the largest variable costs on any shipper’s P&L, and most companies overpay. Accessorial fees (liftgates, residential delivery, detention, inside delivery) can stack up to 30 to 40 percent on top of a base freight bill, according to industry pricing data. Base rates get the attention; those line items quietly drain the budget.
The strategies below address the full cost structure: base rates, surcharges, mode selection, classification, packaging, and carrier relationships. Apply several of them together and the savings compound. A 3PL partner like ATS Logistics can implement most of these on your behalf and give you access to carrier pricing tiers you cannot reach on your own.
1. Audit Your Freight Invoices Every Month
Most shipping departments audit invoices quarterly, if at all. That interval is too wide. Carriers issue weight-and-inspection adjustments on 5 to 10 percent of LTL bills, and companies that move to monthly auditing reduce billing errors by roughly 70 percent, according to freight industry data. If you are not sure what drives your current invoice totals, start with the factors that influence freight shipment quotes before auditing.
What to look for in an audit: duplicate charges, incorrect weight calculations, misapplied rates, accessorial fees that were never agreed to, and reclass charges where the carrier re-measured your freight at the terminal. Each of these is correctable, but only if you catch them before the dispute window closes.
Companies can recover 1 to 5 percent of total freight spend through systematic auditing. On a $1 million annual freight budget, that is $10,000 to $50,000 back on the table from work you were already paying for.
2. Understand Your Full Cost Structure Before Cutting Anything
Tactics without data waste time. Before renegotiating rates or switching carriers, pull your freight spend into its three core components: base rate, fuel surcharge, and accessorial fees.
Base rates account for roughly 72 percent of a total freight charge. Fuel surcharges represent around 11 to 15 percent and fluctuate weekly with the Department of Energy diesel index. Accessorial fees are separate and additive: when they stack across a month of shipments, they can add another 30 to 40 percent on top of the base rate.
The ratio matters because the right fix depends on where your money is going. If fuel surcharges are the problem, mode optimization helps. If accessorials are climbing, the fix is in how you book shipments, not in carrier negotiations. Map your spend by category first, then act.
3. Optimize Packaging to Lower Dimensional Weight Charges
Carriers bill based on whichever is higher: actual weight or dimensional (DIM) weight. For LTL shipments, DIM weight is calculated by multiplying length by width by height in inches, then dividing by 166.
A pallet measuring 48 × 40 × 60 inches is 115,200 cubic inches. Divide by 166 and you get a dimensional weight of 694 pounds, even if the actual cargo weighs 200 pounds. You pay based on 694 pounds. Every unnecessary inch of air space in a box or pallet configuration costs real money.
Right-size your cartons to product dimensions, eliminate unnecessary dunnage, and standardize packaging across your SKU catalog. Use denser packaging materials where freight class allows.
4. Verify Your Freight Class Before Every Shipment
Freight class is the primary multiplier in LTL rate calculations. The National Motor Freight Classification (NMFC) system assigns classes from 50 to 500 based on density, stowability, handling requirements, and liability. Moving from Class 100 to Class 70 can reduce your per-hundredweight rate by 30 to 40 percent. If freight class is new territory for your team, the beginner’s guide to LTL freight covers the classification fundamentals.
For a company shipping 1,200 pounds per week, a single class improvement saves approximately $3,700 per year. Carriers now use automated dimensioners at terminals to scan freight as it moves through the facility. If your declared class does not match what the carrier measures, you receive a reclass adjustment billed at the carrier’s discretion. Those adjustments are rarely in your favor.
The 2025 NMFC docket changes simplified classification considerably by making density the primary factor for most commodities. Any freight with a density above 35 lbs/ft³ now qualifies for Class 55, and above 50 lbs/ft³ qualifies for Class 50, regardless of commodity type. If your products fall in those density ranges, verify that your carrier is applying the post-2025 thresholds. Older TMS platforms were slow to update.
5. Consolidate Shipments to Move from LTL Rates to FTL Economics
LTL pricing is based on weight, dimensions, and freight class, and the per-pound rate is almost always higher than full truckload pricing. LTL works well for shipments between 150 and 15,000 pounds. Above 15,000 pounds, or roughly 10 to 12 pallets, full truckload freight becomes cheaper per pound. For a side-by-side breakdown of when each mode wins, see the LTL vs. FTL comparison guide.
If you ship multiple smaller LTL loads per week to the same region, consolidating them into fewer, fuller trucks produces immediate savings on two fronts: you move from LTL rate structures to FTL economics, and you reduce handling points, which lowers damage risk.
Partial truckload is the option most shippers overlook. For shipments between 8 and 18 pallets, or roughly 8,000 to 28,000 pounds, partial truckload pricing sits between standard LTL and FTL rates, often 15 to 25 percent cheaper than LTL on the same lane without the volume commitment of a dedicated full truck.
6. Choose the Right Mode for Each Lane
Every mode has a cost structure optimized for different conditions. Matching mode to lane is not about defaulting to the cheapest option. It is about paying for exactly what the shipment actually requires.
LTL freight is the right call for 1 to 10 pallets moving to a commercial dock, with flexible transit times and no urgency premium. FTL is right for loads above 15,000 pounds, high-value cargo, time-sensitive freight, or shipments that cannot tolerate multiple handling points. Intermodal (combining rail and truck) reduces cost by 15 to 25 percent versus full truckload on lanes over 500 miles, at the cost of one to two additional transit days.
Expedited freight carries a significant premium and should be reserved for genuine emergencies, not for planning failures. Every unplanned expedited shipment indicates a scheduling problem worth fixing.
The easiest framework: map your lanes by volume, frequency, and lead time. High-volume, consistent lanes with flexible windows belong on contract rates with the right carrier for that geography. Low-volume, variable lanes belong with a broker who can shop the spot market.
7. Negotiate Contract Rates Instead of Buying on the Spot Market
Spot market freight is the most expensive way to move a load. When you book freight without a contract, you pay whatever the current market demands. During tight capacity periods, which hit the US freight market every Q3 and Q4 as the shipping season peaks, spot rates spike 10 to 20 percent above contracted levels.
Contract rates lock in pricing, guarantee capacity, and give you predictability for budgeting. Carriers offer contracts to shippers who provide volume consistency and reliable freight characteristics. The data you need going into negotiation: your 12-month shipping volume by lane, your average weight and dimensions per load, your freight class history, and your on-time tender performance.
On-time tender performance matters more than most shippers realize. Carriers track how often customers tender freight on the agreed date. Poor tender performance gives carriers grounds to decline loads at their quoted rate or push you to the spot market without warning.
8. Partner with a 3PL for Volume-Based Carrier Pricing
Individual shippers, even mid-size companies, cannot access the deepest carrier pricing tiers on their own. Those tiers are reserved for the highest-volume customers. A third-party logistics provider aggregates volume across multiple shippers and negotiates as a single large entity. If you are evaluating whether a 3PL makes sense for your operation, what you need to know about 3PL logistics is a useful starting point.
A professional 3PL partner like ATS Logistics, in operation since 1980, can save 10 to 18 percent on truckload and LTL freight beyond the discounts a shipper currently holds, according to freight industry data. The mechanism is aggregated volume: your 500 monthly LTL shipments are pooled with every other shipper in the 3PL’s network, unlocking rate tiers that require hundreds of thousands of shipments to qualify for independently.
Beyond rate access, a 3PL provides carrier capacity guarantees during tight markets, handles invoice auditing, and manages carrier performance. That means you are not chasing down claims or disputes yourself. For shippers without a dedicated logistics team, that operational offload has a real dollar value that does not appear on the rate comparison sheet.
9. Declare All Accessorials at Booking, Not at Delivery
Half of LTL invoice disputes originate from accessorial charges the shipper did not declare when booking. Liftgate service runs $100 to $250 per delivery. Residential delivery adds $75 to $150. Inside delivery and limited-access fees can push the total accessorial burden above $300 per stop.
Carriers set accessorial rates at their discretion when charges are added post-booking. When you declare services at the time of booking, the agreed rate applies. When you fail to declare and the carrier discovers the requirement at the terminal or delivery point, they bill at the tariff rate with no cap.
Build an accessorials checklist into your booking workflow. Flag residential delivery addresses during order entry, not when the driver is already at the door. Confirm dock availability at the consignee before booking the load. Declaring everything upfront costs the same amount, costs it at the contracted rate, and eliminates invoice disputes entirely. For a full pre-shipment checklist, see 9 tips to prepare an LTL shipment for successful pickup and delivery.
10. Use a TMS to Compare Carriers Before You Book
A transportation management system (TMS) compares rates across multiple carriers in real time for a given lane, weight, and shipment type. The price gap across carriers for identical shipments is 25 to 40 percent. Booking the first carrier that comes back without comparison is the most common source of preventable overspend in freight.
A TMS also routes shipments intelligently based on transit time constraints, carrier performance history, and current capacity. The routing engine finds cases where one carrier dominates a westbound lane but is consistently expensive on the return. Without a TMS, that asymmetry is invisible.
For shippers without a TMS, a 3PL with access to a multi-carrier platform delivers the same comparison function without the software investment. ATS Logistics uses a customizable TMS with real-time carrier tracking and rate comparison built in, and that capability is part of what clients access when they work with ATS. It is not an add-on.
11. Ship Outside Peak Season When Freight Timelines Allow
Freight capacity tightens every year from August through November, driven by back-to-school, harvest, and holiday retail shipping. Peak season surcharges add 10 to 20 percent to base rates during this window.
Shippers with flexible timelines can avoid peak-season pricing by moving inventory earlier in the summer or shifting order cycles to Q1 and Q2, when carrier capacity is looser and rates are at their annual low. The savings are not guaranteed, but the pattern is consistent across most years.
For shipments that cannot move outside the peak window, the answer is contract rates and advance booking, both of which require the carrier relationships and volume commitments discussed above. Last-minute spot market freight in October costs the most of any scenario.
12. Reduce Transit Distance with Strategic Freight Planning
Every mile a truck drives adds fuel cost, driver time, and fuel surcharge exposure to your invoice. Route optimization that removes 50 miles from a lane seems minor on a single load. Across 500 loads per year, that reduction is 25,000 miles. At $2.50 to $3.00 per mile for FTL dry van, that adds up to $62,500 to $75,000 in annual savings.
For companies with multiple origin points, the freight planning question is which origin serves which destination at the lowest total cost. The answer is not always the geographically closest origin. It depends on carrier network density, lane pricing, and available capacity.
International freight adds customs clearance, port fees, and currency exposure on top of the base transport cost. Optimizing the domestic leg of an international movement, from port to final destination, is often overlooked. Drayage rates from port to first inland point vary by carrier and by container availability, and those rates are negotiable with the right volume and carrier relationship in place. For strategies specific to cross-border spend, see how to reduce your international freight shipping quote.
Frequently Asked Questions
What is the fastest way to reduce freight shipping costs?
Audit your last 90 days of freight invoices first. Billing errors, reclassification charges, and undisclosed accessorials appear on most freight invoices and are recoverable immediately. After recovery, right-size packaging to lower dimensional weight charges. This requires no carrier negotiation and applies to every shipment going forward.
When does LTL cost less than FTL?
LTL is typically cheaper for shipments under 10 pallets or roughly 15,000 pounds moving to a commercial dock with standard transit times. Above that weight threshold, FTL pricing per pound drops below LTL rates, and you also gain transit time advantages because a dedicated truck has no intermediate stops. Compare quotes for both on any load between 8,000 and 15,000 pounds. The crossover point shifts by lane.
How much can a 3PL save on freight costs?
A professional 3PL can save 10 to 18 percent on LTL and truckload freight beyond your current rates by pooling your volume with other shippers to access deeper carrier pricing tiers. The actual savings depend on your current rate base, your shipping volume, and which lanes you operate on. The best way to find out is to compare your current rates against a 3PL quote on the same lanes.
What are accessorial charges in freight shipping?
Accessorial charges are fees for services beyond standard dock-to-dock pickup and delivery. Common accessorials include liftgate service ($100 to $250 per stop), residential delivery ($75 to $150), inside delivery, limited access fees, detention when a driver waits beyond the free time window, and fuel surcharges. These charges can add 30 to 40 percent to a base freight invoice when they accumulate across a month of shipments.
How does freight class affect shipping cost?
Freight class is a multiplier assigned under the NMFC system that determines your per-hundredweight rate. Classes run from 50 (densest, lowest cost) to 500 (lightest, highest cost). Moving from Class 100 to Class 70 reduces your per-hundredweight rate by 30 to 40 percent on the same lane. Accurate classification at booking prevents reclass adjustments at the carrier terminal, which are charged at the carrier’s full tariff rate.
Start Reducing Your Freight Costs with ATS Logistics
ATS Logistics has managed freight for businesses of all sizes since 1980. The company provides LTL, FTL, expedited, drayage, and international shipping through a national carrier network with real-time tracking and 24/7 customer support.
If you ship regularly and want to find out where you are overpaying, the first step is a freight quote comparison. Request a quote from ATS Logistics and bring your current rate data. The comparison will show you the gap quickly.