How Density-Based Pricing Changes LTL Cost Strategies for SMBs
LTL shipping has officially entered the density era—and that means it’s no longer enough to know your freight class and weight. In today’s environment, the size, shape, and stacking efficiency of your shipments can make or break your shipping budget.
This shift to density-based pricing requires SMBs to adopt new strategies to avoid cost overruns and compete with larger, more optimized shippers. Here’s what’s changing—and how to stay ahead.
📦 1. Packaging Efficiency Drives Cost Savings
Before: You could use oversized boxes and still pay based mostly on weight and freight class.
Now: If your item weighs 20 lbs but ships in a large 6-cubic-foot box, you’re paying a premium for the “space” it consumes—regardless of weight.
Real-World Example:
A furniture parts supplier used to ship chair frames in large, loosely packed cartons. After switching to tighter, form-fitted packaging, their billed weight dropped by 18% due to better density, saving ~$0.42 per mile on average.
🧱 2. Stacking and Palletization Affect Trailer Utilization
Before: LTL cost rarely considered stackability.
Now: Poorly stacked or irregularly shaped shipments lower trailer efficiency and increase your rate. Carriers may add surcharges for non-stackable freight or use higher density calculations.
Real-World Example:
A medical equipment company stacked boxes unevenly on pallets, reducing stackability. After investing in uniform-sized cartons and improved pallet loading, they avoided non-stackable fees and saw a 12% reduction in freight costs.
📏 3. Dimensional Accuracy = Billing Accuracy
Before: Small discrepancies in size or weight often flew under the radar.
Now: Carriers use dimensioners to verify size—and bill based on what they scan. If your numbers are off, you’ll face frequent billing adjustments and possible rate penalties.
Tip: Use software tools or dimensioning stations to automate data capture and eliminate guesswork.
💡 4. Rate Shopping Requires New Metrics
Freight class used to be the primary basis for rate comparison. Now, some carriers offer better density-based pricing—but only if your freight is highly efficient. You’ll need to:
- Compare cost per cubic foot across carriers
- Understand how each carrier calculates dim weight
- Work with a 3PL who can simulate and benchmark pricing
✅ Key Takeaways
- Right-size your packaging and eliminate void space
- Standardize box sizes to improve stacking and reduce dimensional penalties
- Invest in accurate dimensioning tools or software
- Partner with logistics providers who understand density-based models
👋 Need Help Making the Switch?
Amware helps SMBs optimize for dimensional pricing—from packaging audits to smarter rate strategies. Let’s reduce waste and lower your shipping costs together.