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GLOSSARY

Tariff

In the trucking industry, a tariff refers to a set rate or list of prices that has been established by a carrier.
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What is a Tariff?

Tariff refers to a published schedule of rates, charges, and fees established by carriers for transporting goods from one location to another. Some tariffs serve as a standard pricing guide, outlining the costs associated with various transportation services and providing transparency to shippers and customers.

However, in the truckload industry, carriers are not legally obligated to follow a specific rate. Instead, they are more often used to provide a base point from which negotiations take place. They are not to be considered legally binding on their own.

LTL services that follow NMFC code recommendations may stick closer to rates that are based on density, but ultimately, there is also room for negotiation based on multiple shipping factors.

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