Base Rate
The base rate – also called the linehaul rate in many contexts – is the foundational charge for transporting a shipment. It covers the cost of physically moving the freight from pickup to delivery and excludes variable add-ons like fuel surcharges, detention charges, liftgate fees, and other accessorial costs. Think of it as the sticker price before extras.
For FTL shipments, the base rate is typically a flat charge per load or a rate per mile, driven primarily by lane distance, equipment type (dry van, reefer, flatbed), and market supply and demand. For LTL, the base rate is calculated from the carrier's tariff schedule based on freight class, weight, and origin-destination – then discounted per the shipper's negotiated agreement. In both cases, the base rate is only part of the total cost, but it's the component with the most negotiating leverage during procurement.
Understanding the base rate separately from the all-in cost matters for two reasons. First, it's essential for accurate carrier comparisons. Two carriers may quote similar all-in prices, but one might have a lower base rate offset by a higher fuel surcharge – and fuel surcharges adjust over time while base rates typically don't. Second, when auditing freight invoices, knowing the agreed base rate is how you catch overcharges. If the invoiced linehaul doesn't match the contracted base rate for that lane, that's a billing error – and those errors are more common than most shippers realize.
Owlery breaks down every carrier quote into its components – base rate, fuel, accessorials – so your team can compare pricing accurately and catch invoice discrepancies against contracted terms.
