What is the cost of freight?

02 May 2018

What is the cost of freight?

While we aren’t fortune tellers at Fleet Express, we’ve been in the logistics business long enough to predict what you’re about to ask: how much is the cost of freight to (insert destination)? Fortunately, we have the answers you seek! Unfortunately, it isn’t as simple as 1, 2, 3, but don’t worry, you’re in luck—we’ll break it down and give you an idea of how you can expect your cost of freight to be calculated wherever you’re shipping.

Understanding What Cost of Freight Is

The cost of shipping is called freight rate. Freight rate is made up of a multitude of variables, like weight and density, as well as distance and capacity. There is no stable base rate for costs because so many of the factors needed to calculate the cost to ship freight are constantly fluctuating. So much so that even the logistics industry can’t predict what it’ll be. What we can do, however, is use the full details concerning your shipment to generate the most accurate (and feasible) freight rate.

We don’t want you to settle for any ol’ price!

Generating the Cost of Freight

While different modes of road transport will have differing rates—whether you decide to ship less-than-truckload (LTL)partial truckload (PTL), or full truckload (FTL) —some factors that affect freight costs overlap.

For instance, the accessibility of that location can be key to determining your rate. Will interlining be necessary? While loads often change hands (or trucks)—especially in LTL—interlining is when a shipment is transferred between different carriers. This will affect the rate.

Here are some other common factors that will affect freight costs:

  • Weight and dimensions
  • Density
  • Classification
  • Origin and destination zip code, distance
  • Accessorials
  • Services required at pickup and delivery
  • Fuel surcharges
  • Trailer capacity
  • Insurance

Rates will differ from road, rail, ocean, and air transport.