Pricing

What Affects Truckload Freight Cost

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

Lets begin by understanding the market supply and demand in the transportation industry.

Difference between supply and demand

Supply is the volume of trucks available
Demand is the volume of trucks needed

Now, lets break down the main elements that affect the cost of your shipment

Geographical Location
- - Every location has its own demand and supply
  - Cities and rural areas have their own dinamics
  - Products and trailer type needed vary by regions, cities or towns
  - Where the shipment is comming from and where is being deliver
Trailer Type Needed
- Each trailer typer has its own unique set of requirements
  - - For instance, refrigerated trailers will comsume additional fuel in order to keep the set temperature on the trailer.
- Even drivers need especialized skills depending on the trailer type being hauled.
  - - For instance, 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 equipment might be in more demand than other.
  - 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 will need a higher insurance coverage
  - Commodity Handling
    - - How a commodity needs to handle
      - For instance, how fragile a product is and the best way to secure it
  - Freight Classification (NMFTA)
    - - A list of freight classes mostly used in Less-Than-Truckload (LTL)
      - The higher the class number the higher the freight cost
      - When possible, it's always most cost effective to consolidate LTL shipment into Full Truckloads
Commodity weight and deminsions
- - Heavier freight will cause the truck to consume more fuel therefore requieres more frequent maintance
Current Fuel Price
- - Fuel price flactuates constantly
    - - Results in frequent changes in freight cost
Accessorial Fees
- - Additional fees added to a shipment aside from the cost of the standard pickup and delivery charges
    - - Common accessorial fees includes additional stops, dwell time, hazardous products, lumper fees (load and unload), among others
Specialized Freight
- - Some specialiezed shipment requiere state permits in order to be transported through such state. Note that each state has it's own set of rules for specialiezed freight.
  - Need specialized trailer and equipment
Special Requests
- - Shipments that must adhere to unique, client-specific guidelines
    - - Such as expedited or time sensitive freight, dropped trailer, specific route, etc..
  - Important to detail in advance to avoid unexpected fees