Freight rates can be challenging to calculate since there are many factors that influence them. For example, some factors that can affect your full truckload freight rates are fuel costs and distance. Read on to learn four factors that attribute to full truckload freight rates.
The further your cargo travels, the more expensive your freight rates will be. Usually, you can calculate the rates for distance using the average trucking cost per mile, but keep in mind that this number constantly changes due to market conditions and other factors. Also, keep in mind that if you choose to transport your cargo outside of a carrier’s service area, you might incur additional fees, thus raising your rates.
Another factor that attributes to full truckload freight rates is fuel costs. Suffice it to say that fuel costs are relevant to any vehicular transportation, but you need more fuel and power to carry full trucks than lighter loads.
The trucks can handle these loads, but they come at a fuel cost that you should always consider for every shipment. Moreover, diesel fuel costs can go up and down throughout the year, so keep an eye on them before shipments so that you know what kind of cost to expect.
Just like any other business, the transportation industry runs on the supply and demand generated by the economy. If there are not enough truck drivers to meet the demand, you can expect freight rates to rise. However, if there are plenty of trucks but not enough demand, freight rates will fall. It all depends on the supply and demand generated by the current economy.
When you need to transport your freight quickly, you rely on expedited freight carriers to do the job. However, expedited services cost more than other options that transport your freight at a slower pace. The faster the transportation service, the higher the rate. So, as you can see, time plays a role in determining your full truckload freight rates.
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