Deficit Rating in LTL · Freight Group

Deficit Rating in LTL

Do you utilize LTL carriers that provide deficit rating?

Do you have deficit rating as part of your tariff?

Do you find LTL Carriers still provide this discounting on CWT pricing models?

Deficit rating works like this. (This is just a made up example) but demonstrates the advantage of deficit rating.

If a carrier charge $1.20 a lb for every pound from 400 lbs to 499 lbs, but then charges (discounts) shipments above 500 lbs at $1.00 a lb and you have a 475 lbs shipment.

475 X $1.20 = $570.00

But shipping this at 500 lbs would be

500 X $1.00 = $500.00

Saving you $70.

If you are allowed to deficit rate then you ship the shipment as 500 lbs even though it only weighs 475 and you get discounted and save money. Just curious how many people utilize these pricing models in their LTL networks? Are they specific to you tariff and provided direct from your LTL provider? Does your LTL partner automate this for you?

5 comments