Pricing

What Affects Truckload Freight Cost?

Although there are many elements that affect freight cost, we work hard to simplify and minimize them. 

Understanding the market supply and demand

Difference between supply and demand in the transportation industry:

• Supply is the volume of trucks available.

• Demand is the volume of trucks needed.

Main elements that affect the cost of a shipment

Geographical Location

• Every location has its own demand and supply.

• Cities and rural areas have their own dynamics.

• Products and trailer types needed vary by regions, cities or towns.

• The origin and destination of the shipment significantly impact pricing.

Trailer Type Needed

• Each trailer typer has its own unique set of requirements.

• For instance, refrigerated trailers will consume additional fuel to maintain the set temperature.

• Some trailers require specialized driving skills. 

• For example, flatbed drivers must personally tarp and secure exposed freight, making regular stops to ensure it stays secure.

Equipment Supply and Demand

• Depending on the geographical location, one type of equipment might be in higher demand than another.

• For example, a region with high volume of produce may experience a higher demand for refrigerated trailers, causing a shortage of these type of trailers in the area.

Commodity Type

• Commodity Price Value

  • • High-value freight requires higher cargo insurance coverage.

    • Most trucking carriers carry a $100,000 cargo insurance coverage. 

• Commodity Handling

  • • Some commodities require special handling.

    • For instance, how fragile a product is and the best way to secure it.

Freight Classification (NMFTA)

• A classification system mostly used in Less-Than-Truckload (LTL) shipments.

• The higher the class number, the higher the freight cost.

• When possible, consolidating LTL shipments into Full Truckloads (FTL) can be more cost-effective.

Commodity Dimensions and Weight  

• Over-Dimensional Shipments

  • • Products that exceed standard dimensions.

• Over-Weight Shipments

  • • Cargo that causes the combined truck and trailer weight more to exceed 80,000 lb.

• Each state has its own rules and limitations regarding oversized and overweight shipments.

• Specialized equipment and skilled drivers might be required for these loads.

Current Fuel Price

• Fuel prices fluctuate constantly, impacting freight cost.

Accessorial Fees

• Additional fees beyond standard pickup and delivery charges.

• Common accessorial fees include additional stops, dwell time, hazardous products, lumper fees (load and unload), and others. 

Specialized Freight

• Some specialized shipments require state permits  to be transported through certain states. 

• Each state has its own set of rules for specialized freight. 

• In some cases, specialized trailer and equipment are needed.

Special Requests

• Shipments that must adhere to unique, client-specific guidelines.

• Such as expedited or time sensitive freight, dropped trailer, specific route, specific pickup or delivery times, etc.

• It is important to detail these in advance to avoid unexpected fees.

Summary of Main Elements that Affect Freight Pricing

When it comes to shipping prices, several key factors influence the cost:

• Market Supply and Demand 

• Geographical Locations

• Trailer Type Needed

• Equipment Type Supply and Demand

• Commodity Type

• Weight and dimensions

• Fuel Price

Other elements affecting pricing:

• Accessorial fees

• Specialized freight

• Special requests

Prices are tailored to each customer's unique needs and requests.