The core transportation charge for moving freight from origin to destination before fuel surcharges, accessorial fees, or other additions are applied.

The distribution of freight volume among carriers in a shipper's network - defined in the routing guide and measured by actual tender and shipment data.

The process of negotiating freight rates, service terms, and capacity commitments with carriers - informed by lane data, market benchmarks, and historical performance.

A pre-negotiated freight rate between a shipper and carrier, typically established through an RFP and locked for a defined period - usually 12 months.

A pricing calculation used primarily in parcel and air freight that converts a package's volume into an equivalent weight, charging the greater of actual weight or dimensional weight.

An LTL pricing agreement where multiple freight classes are grouped under a single, blended class for rating purposes - simplifying pricing and often reducing cost for shippers with mixed-class freight.

The practice of comparing a shipper's freight rates and carrier performance against market averages, industry standards, or peer data to identify cost-saving opportunities.

A standardized classification system used in LTL shipping that assigns commodities to one of 18 classes (50-500) based on density, handling, stowability, and liability - directly determining the tariff rate applied.

A cost allocation metric that divides total freight spend by units shipped - typically cases, pallets, or pounds - to measure transportation efficiency at the product level.

The weight of a shipment per cubic foot, calculated by dividing total weight by total cubic volume - the primary factor in determining freight class for LTL shipments.

The strategic process of sourcing, evaluating, and contracting carrier capacity to move a shipper's freight - encompassing RFPs, rate negotiations, routing guide construction, and ongoing rate management.

A formal procurement process where a shipper solicits competitive bids from carriers across their shipping lanes, typically conducted annually to establish contract rates and routing guides.

The price a carrier charges to move a shipment from origin to destination, determined by factors like mode, distance, weight, freight class, and market conditions.

The practice of tracking, analyzing, and optimizing total transportation expenditure - encompassing invoice audit, cost allocation, budget forecasting, and identifying savings opportunities across carriers and lanes.

A published rate schedule - most commonly used in LTL shipping - that defines pricing based on freight class, weight, origin, and destination, before discounts are applied.

A variable fee added to freight rates that adjusts with diesel fuel prices, calculated using a carrier-specific or industry-standard fuel surcharge schedule.

A defined origin-destination pair for freight movements - the fundamental unit by which shippers analyze rates, carrier performance, volume, and procurement strategy.

The charge for transporting freight over the road between origin and destination - the core cost component of a freight shipment before fuel surcharges and accessorials.

A targeted, small-scale freight procurement event focused on specific lanes or segments, conducted between annual RFP cycles to address rate misalignment or service issues.

A standardized commodity code assigned by the NMFTA that classifies products for LTL shipping, determining the freight class and associated tariff rate for each item.

The process of comparing freight rates from multiple carriers for a given shipment to find the best combination of cost, service, and transit time.

A prioritized list of carriers assigned to each shipping lane, typically established through an RFP, that defines which carrier gets first, second, and third right of refusal on each load.

The percentage of shipments that are successfully tendered to and accepted by the primary carrier in a shipper's routing guide, measuring how well the procurement strategy holds up in execution.

The current market price to move a shipment, quoted in real time and typically used for freight not covered by contract rates or when contracted carriers reject a tender.

The all-in cost to move a shipment - including linehaul, fuel surcharge, accessorial charges, detention fees, and any other charges incurred from pickup to final delivery.