Minimum charge

A minimum charge is the least a carrier will bill for a shipment, however small. In LTL, FedEx Freight's absolute minimum is the charge after every pricing term is applied — $254 for Priority and $243 for Economy in 2026 — and no discount takes a bill below it. Air and ocean carriers charge the greater of the minimum or the rate.

By mode

Worked examples: when the floor applies

• LTL: a Priority shipment that rates at $180 after its discount is billed $254.00 — the absolute minimum.
• Air: a 24 × 20 × 18 in carton of 30 lb has a dimensional weight of 8,640 ÷ 194 = 44.5 lb on Alaska Air Cargo's domestic divisor, so 44.5 lb is charged — then compared with the minimum.
• Ocean LCL: 2.4 m³ weighing 1,100 kg is charged on 2.4 W/M, because 2.4 cubic metres yields more than 1.1 tonnes.

The figures are illustrative; the rules applying them are the carriers' own. FedEx Freight's tariff also says charges are not reduced below the applicable minimum after a discount. Minimums differ by carrier and distance: Old Dominion's 100-Q tariff sets $169.00 under 700 miles, $205.00 for 700 to 1,199 miles and $255.00 for 1,200 or more, where FedEx Freight sets one figure per service.

The mistake people make

Negotiating the discount and not the minimum. On small shipments the floor, not the rate, is often the price, and no discount takes a bill below it — so for a shipper of many small pallets, a lower absolute minimum is worth more than a deeper discount. Compare carriers' minimums, and consolidate small orders where the floor bites.