FREIGHT PRICING & MINIMUMS
Absolute minimum charge (AMC)
An absolute minimum charge is a contractual floor applied to a defined charge or service calculation. Its basis and order of application depend on the carrier’s tariff or customer agreement.
ABSOLUTE MINIMUM CHARGE IN PRACTICE
- Calculate the baseApply the agreed rate or discount to the shipment.
- Apply the floorCompare the eligible result with the minimum.
- Add other chargesApply remaining items in the contractual order.
Use the agreed units, actual records and approved procedures for your operation.
A WORKED EXAMPLE
$45 calculated. $60 minimum.
Assume an agreement sets a $60 transportation minimum. A shipment’s discounted transportation charge is $45, so that component becomes $60. If the agreement separately adds $10 of fuel and $15 for an accessorial service, the illustrative total is $85 before tax. The minimum did not cap the invoice at $60. These invented amounts explain the arithmetic; they are not a current carrier rate.
WHAT THIS MEANS FOR YOUR QUOTE
Agree the requirement before comparing quotes
Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.
Put this term to work. Use the 3PL pricing and rates guide for the wider invoice context and the guide to comparing 3PL quotes to compare the same scope, activity profile and billing units.
A LITTLE MORE CONTEXT
Questions about Absolute minimum charge
Is AMC the final all-in price?
Not necessarily. The agreement determines which components it covers and which are additional.
Does a larger discount always lower the bill?
No. A transportation minimum can prevent further reductions to the component it governs.
Is there one minimum across all carriers?
No. Minimums are service-, tariff- and contract-dependent. Use the terms that apply to the actual shipment.
Source & example notes
Definition and operational example prepared by 3PL Hub. Examples describe hypothetical requirements; verify the actual records and agreed procedures for your operation.
Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.
Last updated: · 3PL Hub
