Factors That Influence Freight Shipping Costs
Freight shipping charges vary depending on several factors, and businesses need to consider these factors when using freight shipping services.
Freight shipping is a complex industry with many factors that affect costs, making it impossible to get an exact shipping estimate.
Businesses using Canadian freight shipping should have an idea about the factors influencing freight shipping charges. This post will walk you through some of those factors.
- Dimensions and Weight
The weight and size of a shipment impact costs. For full truckloads, you pay a per-mile rate, plus fuel costs. For less than truckload shipments, the cost depends on weight and dimensions. For heavy loads, it costs less per 100 pounds.
- Destination Type
The freight costs increase if it’s a time-consuming or challenging shipment. Drivers also consider the time spent completing the delivery and charge accordingly. Certain locations like churches, storage units, schools, construction sites, or military bases, may incur additional charges.
- Freight Class
Freight falls into 18 classes based on factors like value, stowability, and density. Lower-class loads cost less to ship because they are easier to handle and less susceptible to damage.
Shipping costs increase with distance. Regional carriers handle specific areas, so if goods go beyond, they transfer to another carrier, further increasing the cost.
- Freight Type
The freight and trailer type also affect the shipping rates. There are dry reefer freight, flatbed freight, and van freight for different cargo types.
- Fuel Costs
Fuel prices, especially diesel, influence shipping rates. High fuel costs lead to higher shipping rates, and vice versa. State-to-state shipping can be costlier due to varying fuel prices.
- Freight Demand
Demand and supply for freight play a crucial role in shipping charges. Limited truck space raises rates, while slow shipping may lead to lower costs as carriers try to fill trailers. Prices can vary among carriers, so shopping around can be beneficial.
- Freight Density
Freight density is a crucial aspect of cost calculation. It is determined by dividing the total weight by the cubic feet. For pallet shipments, the pallet’s dimensions are taken into consideration.
- Deadhead Miles
Carriers avoid deadhead miles or empty trailers. The cost of driving an empty trailer to the next destination is a loss of revenue. They charge for deadhead miles, especially in rural places.
Shipping costs are not standardized due to these variables. To get an accurate estimate, it is important to consider all these factors and work with carriers that suit your specific shipping needs.