LTL Carrier Data: How to Evaluate the Right Carriers

Each year, shippers in North America alone spend more than $20 billion annually on less than truckload shipments. Whether it's shipping a single pallet to one customer, or multiple stops with lighter loads, LTL is a convenient way to move products when you don't have the volume to justify a complete truckload. While there are several good LTL carriers on the market, there are some who operate with less-than-stellar service records. This opens the often-asked question, how can a shipper find the right LTL carrier. In this blog post, we'll explore the key data points that can help you evaluate and select the best LTL carriers for your shipping needs.

Data points are used in multiple industries to make strategic decisions on a daily basis. Although relying on data alone to make decisions is not always the best course of action, there are a few important data points that any shipper can review that will streamline their search for the right LTL carriers.

Key LTL Carrier Data Points to Track

Noted below are a few common LTL carrier data points that can help you determine which carrier is best suited to move freight to your valued customers.

The Cost of an LTL Shipment: While shipping rates can and often fluctuate, over time there will be an average cost of shipments completed by LTL carriers. One way that proactive shippers track this data is by documenting the charges submitted by multiple carriers from port of origin to the destination. They can then divide the total charges by the total miles traveled, which will give you an average cost per mile.
Accuracy of LTL Billing: By collecting data, you'll notice some trends among all of your LTL carriers. One less than honorable one is the appearance of billing accuracy. Some of the most common mistakes to keep an eye out for including double charging or being charged for extra weight or freight that you didn't ship — patterns that a regular freight invoice audit can help you catch before they compound.
On-Time Delivery: Again, the efficiency of your LTL carriers is an important data point to help you determine the overall quality of the service they provide you. Since prompt delivery of your products to customers is a critical business and customer service attribute, using LTL tracking tools and carefully documenting on-time delivery performance will provide you with the right data.
Damage to Freight: Although it's estimated that most freight damage is not always the fault of LTL carriers, but poor packaging, it's still a reliable data point. When carriers take possession of your freight, many of them assume liability for the condition of your commodities. If you have certain carriers that are delivering products damaged more than others – they should be eliminated from future jobs.
Compliance to LTL Carrier Standards: One of the best resources for any shipper is the Inbound Freight Routing Guide. This 'rulebook for LTL carriers' provides shippers with the general carrier compliance standards for the safe movement of freight in the United States. By reviewing the publicly notated violations of carriers you utilize, you can make a determination if those carriers should be used in the future.
Freight Surcharges: This is an area that is typically in full-control of shippers. Before signing an LTL carrier agreement, the carrier should negotiate a fuel surcharge for a pre-determined period of time (usually 12-months). Carriers who are flexible about the fuel surcharge are ones who will work with you on other items – like volume shipping rates. Keep track of all fuel surcharges of each LTL carrier, and also how willing they were to negotiate.
Acceptance or Refusal Rate: While you do your best to notate your customers hours of delivery, and delivery acceptance terms to LTL carriers, there are sometimes when the delivery will be refused. The ratio of LTL shipment acceptance or refusal is a data point that indicates a pattern of the LTL carrier – flexibility. If some carriers are better than others with this data point, the edge should carry in their favor.

Final Thoughts

The data points listed above are not the end-all-to-be-all determining criteria for picking the perfect LTL carrier. In fact, a smart shipper understands the value of insider data points – gathered by insiders within the supply chain who have collected years of data. One such resource is a third-party logistics company like Redwood Logistics, whose Modern 4PL approach combines deep carrier relationships with data-driven insights, allowing them to help you find the best carrier for your individual applications.

FAQs

What LTL carrier data should shippers track before choosing a carrier?

Shippers should track cost per mile, billing accuracy, on-time delivery, freight damage, compliance to carrier standards, freight surcharges, and acceptance or refusal rates. These LTL carrier data points help reveal patterns in service quality, pricing behavior, and operational flexibility so you can compare carriers on more than just the quoted rate.

How do you measure whether an LTL carrier is cost-effective?

A practical way to measure cost-effectiveness is to document shipment charges across carriers and divide total charges by total miles traveled to calculate an average cost per mile. That gives shippers a cleaner comparison than looking at isolated quotes, especially when rates fluctuate by lane, origin, destination, and service level.

Why is billing accuracy important when evaluating LTL carriers?

Billing accuracy matters because recurring errors can quietly increase shipping costs over time. Common issues include double charging or being billed for extra weight or freight that was never shipped. Regular freight invoice audits help shippers spot those patterns early and determine whether a carrier is consistently reliable on invoicing.

How can shippers tell if an LTL carrier is reliable on delivery performance?

Shippers can evaluate reliability by documenting on-time delivery performance and using LTL tracking tools to verify transit behavior. Prompt delivery is a critical customer service metric, so a carrier’s track record for meeting delivery windows is a strong signal of overall service quality.

Should freight damage be used as a carrier selection metric?

Yes, freight damage should be used as a carrier selection metric, even though packaging often plays a major role. When one carrier delivers damaged products more often than others, that pattern is useful data and can justify removing that carrier from future shipments. In many cases, carriers also assume liability once they take possession of the freight.

What is an inbound freight routing guide and why does it matter for LTL carriers?

An inbound freight routing guide is a shipper’s rulebook for LTL carriers. It outlines general compliance standards for the safe movement of freight in the United States, and it can be used to review public violations tied to carriers you already use. That makes it a useful tool for deciding whether a carrier should remain in your network.

How should shippers evaluate fuel surcharges and acceptance rates in LTL carrier data?

Shippers should track both the fuel surcharge terms and how willing a carrier is to negotiate them, usually over a predetermined period such as 12 months. They should also monitor shipment acceptance or refusal rates, since those patterns show how flexible a carrier is with delivery conditions and customer requirements.