What is the average cost per pound for LTL shipping? (2025 data)

The average cost per pound for LTL (Less-Than-Truckload) shipping ranges from $0.15 to $0.75 per pound, with most shipments falling in the $0.22 to $0.42 per pound range. According to the TD Cowen/AFS Freight Index, current LTL contract rates average $46.40 per hundredweight (CWT), representing a 14.3% increase year-over-year.

LTL shipping costs vary significantly based on freight class, distance, weight, and accessorial services required. The LTL market has experienced sustained price increases since Yellow Corporation’s exit in July 2023, which removed approximately 10% of market capacity overnight.

LTL shipping costs at a glance

  • $0.22–$0.42 per pound — typical range for standard LTL shipments
  • $46.40 per hundredweight — current average LTL contract rate (Q1 2025)
  • $120–$300 per pallet — average domestic LTL pallet shipping cost
  • $1.50–$2.50 per mile — average LTL rates per mile (DAT Freight & Analytics)
  • 63.8% above baseline — TD Cowen/AFS Freight Index vs. January 2018
  • 14.3% year-over-year — contract rate increase in 2025
  • $114 billion — U.S. LTL market size (2025)
$0.32
Avg. Cost Per Pound
Typical LTL shipment midpoint
$46.40
Per Hundredweight
Current contract rate average
+14.3%
Year-Over-Year
Contract rate increase (2025)

LTL cost per pound by shipment weight

LTL shipping operates on a tiered pricing structure where heavier shipments receive lower per-pound rates. According to industry data, the relationship between weight and cost per hundred pounds follows a predictable pattern:

Weight Range Rate Per CWT Cost Per Pound Typical Use Case
0–499 lbs ~$50/CWT $0.50 Small parcel overflow
500–999 lbs ~$40/CWT $0.40 Single pallet shipments
1,000–2,999 lbs ~$30–35/CWT $0.30–$0.35 Multi-pallet freight
3,000–4,999 lbs ~$25–30/CWT $0.25–$0.30 Heavy LTL loads
5,000+ lbs ~$20–25/CWT $0.20–$0.25 Volume LTL / spot truckload consideration

LTL shipments typically range from 151 pounds to 20,000 pounds. Shipments below 150 pounds are generally more cost-effective to ship via parcel carriers, while shipments approaching 10,000+ pounds may qualify for partial truckload or volume LTL rates.

Factors that affect LTL cost per pound

Five primary factors determine your actual LTL shipping cost per pound:

Key LTL Pricing Factors by Impact

Freight Class (Density-Based) Primary
Shipment Weight High
Distance / Lane Efficiency High
Accessorial Services Moderate
Fuel Surcharges Variable

Freight class and density

The National Motor Freight Classification (NMFC) system assigns shipments to one of 18 freight classes ranging from 50 to 500. Class 50 represents the lowest cost (dense, easy-to-handle freight), while Class 500 represents the highest cost (light, bulky, or fragile items).

Density is typically the decisive factor in freight classification. The NMFTA introduced significant changes in July 2025 with an expanded density scale impacting over 40% of products shipped. Class 50 freight weighs approximately 50 pounds per cubic foot, while Class 400 freight weighs only about 1 pound per cubic foot.

Distance and lane efficiency

Shipping distance significantly impacts cost per pound. Major freight lanes between high-volume markets offer better rates than remote destinations. For example, shipping a pallet from Los Angeles to Phoenix (a major freight lane) may cost $180, while the same load to a remote part of Idaho could cost $300—even with identical freight class.

LTL accessorial charges that add to cost per pound

Accessorial charges are fees for services beyond standard pickup and delivery. These can significantly increase your effective cost per pound:

Accessorial Service Typical Cost When Applied
Liftgate Service $20–$100+ No loading dock available
Residential Delivery $50–$150 Home or residential zone delivery
Inside Delivery $50–$100 Freight moved beyond threshold
Limited Access $50–$125 Schools, airports, construction sites
Re-delivery $35–$200+ Failed first delivery attempt
Delivery Appointment $25–$75 Specific time window required
Pro Tip
To minimize accessorial charges, provide accurate shipment details upfront on your Bill of Lading—including weight, dimensions, and any special equipment needs. Carriers publish their “Rules Tariff 100” document listing all accessorial fees, and high-volume shippers can often negotiate reduced rates for frequently used services.

LTL rate trends: 2023–2025

The LTL market has experienced significant pricing changes since Yellow Corporation’s exit in July 2023. According to the TD Cowen/AFS Freight Index, rates have steadily increased:

65.1%
Above 2018 Baseline
Q3 2025 record high
10.5%
YoY Rate Gain
Sustained increase since Yellow exit
10%
Capacity Removed
Yellow’s market share

Yellow Corporation was the third-largest LTL carrier when it ceased operations on July 30, 2023. The company’s exit removed approximately 10% of market capacity, leading to immediate rate increases. According to DAT’s chief of analytics Ken Adamo, shippers faced price increases ranging from 20-25% per pound in some cases.

However, capacity is gradually returning to the market. Carriers including Estes Express Line, XPO, and Saia have purchased and reopened former Yellow terminals. According to AFS Logistics, LTL carriers are “effectively navigating a low-demand environment with a focus on profitable lanes, contractual relationships, and reliable freight, rather than chasing volume with pricing concessions.”

U.S. LTL market size

The United States LTL market represents a substantial portion of the domestic freight industry:

$114B
U.S. market (2025)
$139.6B
Projected by 2030
4.13%
CAGR (2025–2030)
54%
North America share

The global LTL market was valued at approximately $227 billion in 2024 and is projected to reach $380 billion by 2034, growing at a CAGR of 5.3%. Wholesale and retail trade contributed 35.02% of 2024 revenue and is the fastest-growing segment at 5.21% CAGR.

FedEx Freight leads the U.S. market with $8.9 billion in revenue, followed by Old Dominion at $5.8 billion. FedEx’s planned spin-off of its freight division into a standalone publicly traded company by 2026 could unlock up to $20 billion in market value, according to analysts.

Frequently asked questions

How much does LTL shipping cost per pallet?

Average LTL pallet costs range from $120 to $300 for domestic shipments, depending on weight, freight class, and distance. High-weight, short-haul shipments on major freight lanes will cost less per pallet than light, long-distance shipments to remote areas.

What is the cheapest freight class?

Class 50 is the cheapest freight class, assigned to dense, durable, and easy-to-handle items weighing approximately 50 pounds per cubic foot. Examples include bricks, steel, and certain machinery. Class 500 is the most expensive, covering light, bulky, or high-value items like ping pong balls or gold dust.

How is LTL cost per pound calculated?

LTL rates are typically quoted per hundredweight (CWT), or per 100 pounds. To find cost per pound, divide the CWT rate by 100. For example, a $46.40/CWT rate equals $0.464 per pound. Actual costs also include base rates, fuel surcharges, and any applicable accessorial charges.

What is the minimum weight for LTL shipping?

While there’s no universal minimum, LTL shipping typically becomes cost-effective starting around 150-200 pounds. Shipments below this threshold are generally more economical to ship via parcel carriers. Most carriers define LTL as shipments between 151 and 20,000 pounds.

How can I reduce my LTL shipping costs?

Key strategies include: accurately classifying freight to avoid reclassification fees, consolidating shipments to reach higher weight brackets, negotiating contract rates for consistent lanes (which can save 10-20% versus spot rates), palletizing properly to maximize density, and avoiding accessorial charges by shipping to locations with dock access during business hours.

What are LTL fuel surcharges?

Fuel surcharges are variable fees that fluctuate with diesel prices. They’re typically calculated as a percentage of the base freight charge. According to industry data, fuel surcharge reductions driven by lower diesel prices have tempered overall revenue growth for carriers in recent quarters, potentially offsetting some rate increases for shippers.

How do LTL rates compare to full truckload (FTL)?

According to DAT Freight & Analytics, average LTL rates in 2024 ranged between $1.50-$2.50 per mile, compared to $2.20-$2.50 per mile for FTL. However, LTL is more economical for shipments of 1-6 pallets that don’t fill a trailer. Shipments approaching 10,000+ pounds may qualify for volume LTL or partial truckload rates that bridge the gap.

What changed with NMFC classifications in 2025?

The National Motor Freight Classification introduced changes in July 2025 with an expanded density scale impacting over 40% of products shipped. These changes shifted more commodities to density-based classification rather than commodity-based classification. Shippers have experienced both positive and negative cost impacts depending on their freight characteristics.

Final thoughts

LTL shipping costs per pound vary significantly based on freight class, weight, distance, and required services. While the typical range falls between $0.22 and $0.42 per pound, your actual costs depend heavily on shipment characteristics and market conditions.

The LTL market continues to experience elevated pricing following Yellow Corporation’s exit, though capacity is gradually returning as competitors expand their terminal networks. Shippers should focus on accurate freight classification, proper palletization, and negotiating contract rates on consistent lanes to minimize costs.

For the most accurate pricing, request quotes from multiple carriers for your specific freight characteristics. LTL rates can vary by 30% or more between carriers for the same shipment, making comparison shopping essential for cost optimization.

Sources & methodology

This article aggregates data from the following sources:

Data reflects publicly available information from Q1 2025. Actual rates vary by carrier, market conditions, and specific shipment characteristics. Always obtain quotes for your specific freight needs.