Full Truckload Rates: What Goes into a Freight Quote?
The full truckload rates are based on a simple calculation. They rely on a cost per mile or a flat rate, ideal for companies that have enough cargo to fill a truck. In this case, it doesn't matter which type of products or how much you ship. The only requirements are that the total weight doesn't exceed 45,000 lbs and that the goods have proper freight insurance.
However, the full truckload shipments (https://migway.com/services/full-truckload/) have a few variables. In this post, we break down the freight quote!
Mileage
Mileage is an integral part of the price calculation. However, it isn't that simple. Longer trips will cost more, including the increased driver hours and fuel used. Fuel prices fluctuate, and carriers adjust the fuel surcharge on a weekly basis.
It is also important to note that not all trips will cost the same, even with the same mileage. We will explain more about this in the next part.
Trucking lane
A trucking lane is like a trucker road from one place to another. The prices for different lanes will vary depending on how many trucks serve the same lane. If more trucks than freight need to be shipped, the prices will be lower. If there are more goods to be shipped than trucks, the prices will go up for that particular route. For example, shipping goods to Chicago can be less expensive than shipping to a small town in Mexico. Large places like Chicago have more trucks coming in and out, lowering shipping costs.
Market capacity
The demand for trucking services will also impact the price. Various factors such as seasonal demand, cost of living, natural disasters, and employment can shape the pricing.
Seasonal pricing
If you're in the business, you have come across the holiday surcharges and produce season. These can result in higher or lower pieces for shipping, a classic example of how supply and demand shape the prices. Let's say you're trying to ship products from places like Florida and Georgia from April to July. This is the produce season in those regions, meaning the trucks are already busy transporting the seasonal fruits and vegetables. The demand for trucks, especially refrigerated ones, rises, which reduces the number of available trucks. Therefore, the shipping prices will go up.
During the third and fourth quarters of the year, retailers' shipping prices go up. At this time, the stores are preparing for back-to-school and holidays, so they have more incoming goods to stock up on. The available trucks decline, so logistic companies increase the prices.
Timing
If you need shipping at an odd time of day, be prepared to pay more. Drivers prefer pickup and delivery during regular business hours on weekdays. Early mornings and late evenings are less convenient for them, so they will charge more.
If you are flexible with the delivery time, this can mean lower shipping prices. If you give the shipper a longer time, they will plan the route efficiently and offer a better price. Tight schedules can result in higher prices, as there is no space for efficient planning, and carriers need to compensate for the lost revenue.
Regular shipments
If you work with the same carrier regularly, this results in savings. When carriers have a consistent schedule with you, they can plan the routes efficiently and offer lower pricing. Remember that one-time deliveries will be more expensive. The more time your carrier has, the better planning they do.
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