Is a 70% discount really better than 60%?
Compare two carrier agreements on total cost, not headline discount. Minimum charges, fuel and accessorials often decide the winner.
Results
Per package
| Carrier A | Carrier B | |
|---|---|---|
| Net transportation | $9.90 | $8.40 |
| Residential (weighted) | $4.55 | $2.73 |
| Fuel | $4.26 | $3.23 |
| Total | $18.71 | $14.36 |
| Annual | $3,742,550 | $2,871,540 |
- Carrier A’s minimum charge overrides its discount at this list rate.
- Fuel applies to net transportation and residential fees.
How this is calculated
Net = max(list × (1 − discount), minimum). Fuel = (net + weighted residential) × fuel %.
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
Why can a smaller discount cost less?
Minimum charges, residential fees and fuel can outweigh a larger headline discount, especially on lightweight packages.
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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.