A local rate is a rate published between two points served by one carrier. This type of rate is generally used for shipments that are picked up and delivered by the same carrier. Local rates can vary based on:
- the mode of transportation (air, ground, or rail),
- the carrier,
- the shipping lane.
A Local Rate includes the carrier’s base rate plus a fuel surcharge and any other local accessorial charges. The local base rate is the same for all lanes within the local market. This type of rate is often used for less-than-truckload (LTL) shipments.
A Local Rate does not include any minimum charge, which may be applied for LTL shipments. Minimum charges are based on the shipment’s density, which is determined by dividing the total weight of the shipment by the total cubic feet. The minimum charge is the greater of the two rates.
Local rates are often used for small shipments or when time is not a critical factor. For larger or more time-sensitive shipments, carriers will typically use their standard rates. However, in some cases, local rates may be cheaper than standard rates. It is always best to check with your carrier to see if they offer local rates for your shipment.