Is a minimum charge wiping out your discount?
Minimum net charges set a floor under every package. On light, short-zone shipments they can override a large discount entirely.
Results
Effective discount by headline discount
| Headline | Billed | Effective |
|---|---|---|
| 40% | $10.85 | 23.6% |
| 50% | $10.85 | 23.6% |
| 60% | $10.85 | 23.6% |
| 70% | $10.85 | 23.6% |
| 80% | $10.85 | 23.6% |
How this is calculated
Billed = max(list × (1 − discount), minimum). Effective discount = 1 − billed ÷ list.
Rates shown as defaults come from carrier publications or each carrier’s published table applied to the EIA price; see the methodology. Estimates and examples are labeled. Results are illustrative and do not represent any carrier’s reported financial results.
Questions
Can minimum charges be negotiated?
Yes. Minimum reductions are a standard term in larger agreements and matter most for lightweight shippers.
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Logistics Contract Optimizer reviews parcel, LTL and truckload agreements for free. Clients typically recover 3% to 15% of freight spend, and with savings-share pricing there is no fee without savings.