The Magic Behind the Numbers in LTL Pricing

If you’re new to the world of less-than-truckload (LTL), it can feel like pricing is a mysterious alchemy—half data science, half wizardry. I’ve been there. Early in my career, I knew my products and customers, but the rules behind what made freight cost what it did? That was a black box. To kickoff Summer LTL Hybrid series focused on SMC³’s LTL 203 Freight Pricing course, Kevin Housley, Karl Manrodt, and I broke that box open. Here are three insights that will help any early-career logistics professional gain confidence and clarity in navigating LTL pricing.

📊 Your Data Is Your Freight Strategy

LTL pricing isn’t just based on mileage or weight—it starts with your own shipping data. Kevin nailed this point when he said, “Understanding what you’re shipping is almost as important as understanding what your sales are.” Where is your freight going? When is it moving? How is it packaged? These are critical questions to answer that directly influence your pricing outcomes.

When you know your patterns, you can begin asking smarter questions of your LTL carrier or 3PL partner. For example, does your volume justify a drop trailer program? Are you bunching shipments on the same day, causing congestion or inefficiencies? Understanding your data lets you reduce costs—sometimes even before you renegotiate a single rate.

🧠 Why Pricing Still Needs a Human Brain

There’s a growing temptation to believe that AI and automated rating engines can do it all. And while those tools are phenomenal, Kevin reminded us that “you still need people in pricing.” Why? Because LTL isn’t one-size-fits-all. A rate that looks bad in a system might be a strategic win in real life—and vice versa.

Think of pricing like diagnosing a health issue. A machine can give you symptoms and probabilities, but an expert connects the dots. Seasoned professionals still need to dig into why a shipment profile appears unprofitable—or what nuances the algorithm might be missing, like spotting equipment or oddly timed delivery requirements. Machines help, but human judgment drives smarter decisions.

🚛 Go Walk the Docks (Yes, Even If You’re in Pricing)

This one’s a little unconventional, well if you’ve not been in logistics or transportation long: if you want to understand how pricing really works, go visit a terminal. Walk the dock. See the freight. Kevin, who leads LTL pricing at Scan Global Logistics, makes a habit of this. “You get a feel for whether a carrier handles overlength freight well or if they specialize in tires,” he shared.

Why does this matter? Because what happens on the dock affects how a carrier views your freight—and how they price it. Cleanliness, equipment quality, OS&D bays, and packaging all offer insights into operational efficiency and carrier priorities. If you’re pricing freight without understanding the physical flow, you’re missing half the picture.

From Curiosity to Confidence

Getting a handle on LTL pricing isn’t about memorizing tariff charts or trusting a cost model blindly. It’s about curiosity, relationships, and connecting the operational dots to pricing decisions. As Kevin put it, “You have to add context to your perception to get the best perspective.” If you’re early in your career, start with your data, ask good questions, and get close to operations. And most importantly—be someone others want to work with. That’s how you go from surviving LTL to loving it.

Interested in joining LTL Hybrid Sessions? Register here: https://smc3.info/LTLedu