Predicting your next truckload shipping rates is a tricky thing. The rates have changed dramatically over the past few years. However, fluctuations in supply and demand chain and fuel prices are the main culprit for changing truckload rates. When you want to transport your goods and ask the transport company for a freight quote, you should know how it gets calculated. It helps you from getting duped with hefty transport rates.
The most common rates are full truckload rates or FTL. It gets used when you have enough freight to fill the cargo. Truckload rates are easy to calculate, and they use cost per mile or a door-to-door rate. You can also avail of instant online freight quotes on the internet. However, you should know what goes into your freight quote and truckload rates. So, below are the factors that determine the same.
- Mileage
Mileage plays a vital role in the truckload rates, but it isn’t as simple. When you want to ship freight to long distances, increased fuel and driver time leads to higher costs. But, all lanes don’t cost the same even if the mileage remains the same.
- Trucking lane
A lane refers to the origin and destination of transport. The costs for a lane depend on the freight volume moved in and out at those two locations. If your city has a high ratio of trucks to available freights, then it gets affordable to ship and vice versa.
- Market capacity
Market capacity refers to the availability of trucks versus demand for shipping services. It has a significant impact on truckload rates. The market capacity changes as per seasons, but external forces like equipment sales, employment, natural disaster, etc. can change it.
- Seasonality
You might have heard your shipping company mention ‘holiday surcharges’ or ‘produce seasons.’ They are often the reasons behind higher or lower truckload rates. It’s nothing but a straightforward situation of supply versus demand that affects truckload shipping rates. You can always rely on freight shipping rates comparison offered by companies like LCLXchange.
- Flexibility and speed
Flexibility around pick-up and delivery time is crucial. If you want to reduce costs, you should help your shipping partner and drivers reduce their idle time. And plan their routes in a way that maximizes their capacity. In contrast, restrictive shipments can incur higher rates.
- Spot rate
If you can have a standing relationship with your shipping partner, where you move the shipment regularly, then you can benefit from the spot rate. It offers more consistency and better planning to transport company. And you get lower truckload rates in return.
- Fuel surcharges
The market price of diesel can affect your truckload rates. As the fuel prices change, your transport company may reduce or raise fuel surcharges. In such cases, it’s best to get instant online freight quotes and plan your shipment accordingly.
To sum it all up
Mileage, destination, seasonality, and fuel costs are factors that determine the truckload rates. Indeed, you can compare freight rates online. But, by referring to the point above, you can learn how your overall freight quote gets calculated.