FedEx Freight launches space and pace pilot

The LTL program will provide simple quotes based on space and pace customers need to move freight.

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FedEx Freight is launching a novel space and pace pricing pilot for select customers, using dimension-based pricing for LTL.

Through this pilot, FedEx Freight will provide simple quotes based on the space and pace customers need to move freight. Customers provide the weight, dimensions, origin zip, and destination zip of their shipments to receive a quote. Once FedEx Freight receives the shipment, dimension in motion (DIM) technology is used to verify the shipment’s weight and dimensions.

This process simplifies pricing structure by removing the need for complex freight classifications under the National Motor Freight Classification (NMFC) pricing system. There is no longer a need to classify freight because the pricing is tied to the space and pace the customer needs to move the freight. Simple rates paired with straightforward invoices and the elimination of class-based surcharges help ensure pricing accuracy for customers.

“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.

Following a successful pilot, the goal is to provide this price structure as an exciting option for customers in the future.


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