Understanding the factors influencing trucking rates can be essential in determining how much your shipment could cost. A trucking or freight rate is the price of transporting a shipment from one location to another. In other words, this is the amount that a shipper or broker has to pay the carrier. Although the rates tend to be highly volatile, several variables can help determine the amount. This article will explain some of the primary considerations trucking companies have when deciding on a rate to ship domestically.
The Importance of Knowing the Factors Influencing Trucking Rates
There are several benefits that a shipper can have from understanding how carriers determine trucking rates. One of the primary advantages is the money shippers can save when moving goods domestically. Knowing what determines the cost can help in deciding transportation strategies. If a person wants to transport cost-effectively, they can adjust their shipment by method, distance, or route. For a business, this can mean shipping freight ahead of time in a season of less demand.
What Factors Determine the Trucking Rates?
Along with the overall state of the domestic and international shipping industry, specific influences determine trucking rates. Some of the factors include:
- Shipping Method – There are various methods that shippers can use when moving goods domestically. Some examples include LTL (less than truckload), FTL (full truckload), refrigerated, etc. The rate can depend on the type of trucking. For example, expedited shipping tends to be more expensive than regular FTL.
- Freight Classification – In the U.S., freight classification is a grouping system the carriers use to determine pricing for LTL shipping. Developed by the NMFTA (National Motor Freight Traffic Association), there are 18 classes ranging from 50 to 500. A low class like 50 means that freight is dense, hard to damage, and easy to handle. A high class like 500 means the cargo is lighter, harder to handle, and takes up more space. Higher classes will have more excellent rates.
- Density – As previously mentioned, large, light items will tend to have higher rates than smaller, bulkier items. This is known as density and plays a role in determining shipment cost.
- Distance and Route – Longer distances generally mean higher rates due to fuel costs, wear and tear, etc. It is also important to note that the rate can vary by route due to the possible logistics challenges.
- Supply and Demand – Market conditions can significantly impact the rise and fall of rates. A surplus in capacity for moving freight means that the demand is low, meaning that rates may be lower. Rates tend to be higher in seasons when trucks have to transport more freight.
How to Get a Quote?
Along with the listed factors, all trucking companies can have base rates. While understanding how carriers calculate rates can be helpful, it may not guarantee you get an excellent quote. Speaking to a freight broker is ideal for getting the best rate to move your goods domestically. A broker is in touch with many carriers and can find a quote that meets your shipping goals. Contact A1 Freight Solutions at 786-375-9420 or info@a1fsinc.com for a quote to ship your cargo domestically. We have a variety of services like heavy haul, drayage, and expedited for transporting your shipment to the final destination.