LTL Cost LabUnderstand the freight behind the bill

Article · Reviewed November 2, 2026

How LTL average cost rises while comparable rates fall

MyMGN Marketplace from MGN Logistics addresses LTL cost movement against the customer’s own shipping profile. The synthetic example below illustrates one reason that matters: average shipment cost can rise when more freight moves longer distances, even if comparable prices fall.

What to understand

A shift toward longer or more expensive shipments can lift the average even when prices fall within comparable groups. Holding the earlier shipment mix constant separates these two views.

Start with 100 shipments.

Imagine 80 short-haul shipments at $300 and 20 long-haul shipments at $700. Total spend is $38,000, or $380 per shipment. These figures are synthetic and are used only to illustrate the arithmetic.

Now change the prices and the mix.

Both lane-group prices fall 5%, to $285 and $665. But the business now ships 50 short-haul and 50 long-haul moves. Total spend becomes $47,500 and the average reaches $475. The observed average is 25% higher even though both comparable group prices are lower.

Hold the original mix constant.

At the original 80/20 mix, the later prices produce an average of $361: 5% below $380. This fixed-mix result asks a more specific question than the observed average. It does not replace the actual spend; it helps explain it.

2. Hold the shipment mix constant

Use two comparable lane groups to separate price and mix changes. This illustration assumes both later prices are known and comparable. It is not a proprietary MyMGN calculation.

Earlier
Later actual
Later, old mix

Fixed-mix average = sum of earlier group shares × later group prices. Mix effect uses later prices. Results depend on grouping, the chosen reference period and comparable coverage. Read the full methodology.

Use the result as a starting point.

Real freight histories contain many lanes, weights, classes and service requirements. Grouping, common coverage and missing values matter. A two-group illustration should not be presented as a complete customer-specific attribution model.

Published coverage and product references

Continue the comparison

Sources and further reading

  1. NMFTA: National Motor Freight Classification
  2. MGN Fast Service acquisition and Marketplace expansion release
  3. MGN Business Intelligence
  4. MGN Logistics: Optimizing Logistics for the Modern World