Tariff-based vs. dynamic LTL pricing: what is the difference?

How LTL tariff pricing and dynamic pricing work, why the same shipment can price differently under each, and how to use both to pay less.

Short answer

Tariff-based LTL pricing applies an agreed discount to a carrier's published rate base, so the price for a lane, weight and class stays stable. Dynamic pricing is set by the carrier shipment by shipment, moving with capacity and demand on that lane that day. Neither is always cheaper, so the best result comes from comparing both on every shipment.

How tariff-based pricing works

A carrier publishes a rate base: a table of rates by origin, destination, freight class and weight break. A pricing agreement applies a discount to that table, usually with a minimum charge and agreed terms for fuel and accessorial charges. The price is predictable. The same shipment on the same lane costs the same next month.

The strength of a tariff program is its tier. Better tiers carry deeper discounts, lower minimums and more favorable accessorial terms.

How dynamic pricing works

With dynamic pricing the carrier calculates a price for the specific shipment at the moment of the quote. The price reflects how much room the carrier has on that lane, which direction its trailers are running empty, and how much it wants the freight that day.

Dynamic rates can be well below tariff on a lane where the carrier needs volume, and above it where the carrier is full. They also change, so a dynamic quote is typically valid for a short time.

Why compare both on every shipment

  • A carrier with empty capacity on a lane may price a dynamic rate below its own tariff
  • A tight lane can push dynamic rates up while the tariff rate holds
  • Heavier or denser shipments often behave differently from light ones
  • The cheapest carrier under one method is often not the cheapest under the other

Why the rate source matters

A rate pulled directly from the carrier's own system by API reflects that carrier's current price for your exact shipment. A rate estimated from a stored table can be out of date, which is one of the common reasons an invoice does not match a quote.

Tariff and dynamic LTL pricing compared
Tariff-basedDynamic
Set byA published rate base and an agreed discountThe carrier, per shipment
StabilityStable for the term of the agreementChanges with capacity and demand
Best whenLanes are steady and budgets need predictabilityA carrier has room on the lane that day
Quote validityAs long as the agreement runsTypically short
RiskPaying more than the market on a soft lanePaying more on a tight lane

Common questions

Is dynamic LTL pricing cheaper than tariff pricing?

Sometimes. Dynamic rates are lower when a carrier wants freight on a lane and higher when it is full. Comparing both on each shipment is the only reliable way to know.

What does Tier 1 LTL pricing mean?

It refers to a provider's best pricing level with a carrier, which generally means deeper discounts and better terms than lower tiers.

Do accessorial charges apply to dynamic rates?

Yes. Services such as liftgate, residential delivery and appointments are charged under either method, so they should be included when the shipment is quoted.

Written by the MeritSpan Logistics team. Last reviewed November 10, 2026. Figures are typical values; equipment and carrier rules vary.

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