FedEx Freight announces plan to modernize LTL pricing

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On Tuesday, FedEx Freight announced its plan to modernize LTL pricing using dimension-based factors.

The space and pace pricing pilot program will allow FedEx Freight to provide simple quotes based on the space customers need and the pace at which they need to move freight. Customers provide the weight, dimensions, origin zip code, and destination zip code of what they want to ship in order to receive a price quote, the company said.

“With the simplicity of space and pace pricing, we aim to build confidence with our customers by ensuring they receive accurate pricing on the frontend in order to reduce the frequency of price adjustments and disputes on the backend,” said Mike Lyons, Vice President LTL Revenue Quality

Once FedEx Freight receives the shipment, the company’s Dimension in Motion (DIM) technology will verify the shipment’s weight and dimensions. The company said the process would simplify the pricing structure by removing the need for complex freight classifications. Simpler rates combined with straightforward invoices and the elimination of classification-based surcharges will ensure pricing accuracy, the company said.

“FedEx Freight is committed to modernization and innovation efforts in freight pricing. Following a successful pilot, the goal is to provide this price structure as an exciting option for customers in the future,” the company said.