Minimum Charge

A minimum charge is the lowest transportation rate that a carrier will accept for a shipment, applied when the calculated rate based on weight, distance, or other factors falls below the threshold needed to cover the carrier's basic operating costs for the move. Minimum charges are common in both LTL and short-haul FTL shipping where small shipments or short distances would otherwise generate rates that do not justify the carrier's time and resources.

In the refrigerated freight market, minimum charges are typically higher than dry van minimums because reefer equipment has higher operating costs including fuel for the refrigeration unit, additional maintenance for the cooling system, and premium driver compensation. A typical reefer FTL minimum charge ranges from $500 to $1,000 for short-haul moves, while reefer LTL minimums range from $150 to $500 depending on the carrier and market.

When Minimums Apply

Minimum charges most commonly affect short-distance shipments where the per-mile rate multiplied by the route miles produces a total below the minimum threshold, small LTL shipments where the weight-based rate falls below the carrier's cost floor, and deliveries to locations that require liftgate service, inside delivery, or other accessorials that the base rate alone would not justify.

Shippers who frequently encounter minimum charges should evaluate whether their shipping patterns can be adjusted to reduce the impact. Strategies include consolidating multiple small shipments into fewer larger ones, coordinating with nearby facilities to combine freight, or negotiating minimum charge levels as part of a broader rate agreement that rewards the carrier with consistent volume on more profitable lanes.