Freight shipping pricing isn’t as simple as just plugging some numbers into a freight rate calculator and calling it a day. Sure, distance and weight do count, but truckload freight rates are influenced by a whole lot of other variables, like supply and demand, the type of equipment being used, and the state of the roads. So, it’s no surprise that two shipments that look identical on the surface can end up costing very different amounts of money once they get on the road.
Understanding how full truckload freight rates are calculated, and why they always seem to change, gives shippers a leg up, helping them make smarter decisions about how to get their stuff from point A to point B.
Why Freight Rate Calculators Can’t Give You the Whole Story
A freight rate calculator or freight shipping calculator is a great tool for getting a quick quote, but it doesn’t even come close to giving you the whole picture. Most freight calculators rely on historical averages but they just don’t take into account all the changes that are happening in real-time in the freight market.
Even the ones that use real-time data from top freight carriers can miss things like:
- The demand and supply imbalances that are driving up prices
- The availability of different types of equipment, like dry vans or reefers
- The difference between shipping to a big city and a small town
- The fuel surcharges that get tacked on because of rising diesel prices
- All the little extra fees and charges that you can’t even begin to anticipate
So, it’s no wonder that the quotes you get from a freight rate calculator often don’t match up with the final price you get charged.
The Real Factors That Drive Truckload Freight Pricing
Truckload freight rates are influenced by a whole lot of different factors and no one single factor can tell you exactly how much it’s going to cost. It’s a complex system, and there are no easy answers.
1. Shipment Size, Weight, and Pallets
When you’re talking about full truckload shipping, you’re talking about a whole truck or a whole trailer. This is a cost-effective way to ship big, heavy loads, typically 10 or more pallets, that need to go from point A to point B. Unlike less-than-truckload shipping, where you’re splitting the costs with other customers, with FTL you’re paying for the whole truck and that’s it.
Now, just because the cargo doesn’t fill the whole truck doesn’t mean you’re getting a break on price. That space is still reserved for your shipment and you’re still going to pay for it.
By contrast, less-than-truckload shipping is best for smaller and lighter loads, typically between 150 and 15,000 lbs, where the costs are influenced by factors like freight class, weight, density, and handling requirements.
2. Distance, Routing, and Destination
You might think that it’s just about how far you’re shipping, but it’s actually a whole lot more complicated than that. Sure, longer distances cost more, but it also depends on where you’re shipping to. Remote areas, congested cities, and lanes that are out of balance tend to cost more than shorter, more straightforward routes.
And don’t even get me started on ZIP codes. Getting the right one is crucial for getting an accurate price – because urban versus rural can make a huge difference.
3. Equipment Type and Availability
When it comes to truckload shipping, the type of equipment you need can make a huge difference in the price. Dry van freight is one thing, but if you need a reefer or some other specialized equipment, that’s a whole different story. And if that equipment is in short supply, especially during peak demand periods, you can bet your last dollar that the prices are going to go up.
FTL vs. LTL Freight Rates
One of the biggest differences between freight shipping is the choice between full truckload and less-than-truckload.
LTL Freight Rates
Less-than-truckload shipping is all about splitting the costs with other customers, and that means you’re going to have to deal with a whole lot of variables. Freight class, for example, is determined using the NMFTA classing system, which takes into account the density and characteristics of the goods you’re shipping. And then there’s chargeable weight, which is the higher of actual weight or volumetric weight, and dimensional weight, which is calculated from the package’s size.
Because LTL shipping involves a whole lot of different shipments and carriers, packaging efficiency can make a huge difference in the cost. And if you’ve got bulky items, be prepared for some extra charges.
Full Truckload Freight Rates
Full truckload shipping, or FTL, is all about getting your shipment from point A to point B as quickly and efficiently as possible. Because you’re paying for the whole truck, you can be sure that your shipment won’t be touching any other cargo during transport, which means you don’t have to worry about damage.
Plus, FTL is a great option for big, heavy loads that need to go a long way, because it can actually be cheaper than using multiple smaller shipments. And because you’re reserving the whole truck, you can be sure that your shipment will get priority, which means it’ll get there faster, too.
How Freight Rate Calculators Work in Practice
Freight rate calculators are a great tool for getting a quick quote but they still can’t replace the real-time data that human freight experts can provide. A freight calculator is an online tool which helps shippers get a rough idea of what it’ll cost to move their cargo. To get a freight calculator to give you a decent estimate you’ll need to have some shipment details to hand, such as weight, dimensions, origin, destination, freight class and the type of service you need.
To use a freight calculator and actually get a good idea of the costs, you’ll need to get into the details and this can be tricky because the cost of freight is being influenced by all sorts of things, changes in fuel costs, carrier tariffs and the like. Freight calculators will even try and estimate your freight class based on the dimensions, weight and type of cargo you’re shipping.
Using a freight calculator should make your job easier and it can do a few things for you:
- Give you instant quotes for LTL – Less Than Truckload shipping, FTL – Full Truckload shipping and other shipping options
- Compare prices from loads of different national and regional carriers all at once
- Help you keep a handle on your freight costs before you actually book anything
- Save you time and make your shipping process a whole lot easier
However keep in mind that freight calculators are by no means infallible, and they can sometimes miss out on hidden fees that can double the cost of your shipment if you don’t notice them.
Accessorial Charges and Additional Fees
Accessorial services can really add a lot to the cost of your shipment, and you should always keep an eye out for them in your freight quotes.
Common accessorial charges include things like fuel surcharges, inside delivery, residential delivery, liftgate services and special handling for hazardous materials.
Special handling services like liftgates or residential delivery can blow out your costs by 20–40% once you factor them in.
Why Truckload Rates Change Over Time
Truckload freight rates are constantly shifting because of changes in the market right across the supply chain.
Some of the key factors that come into play include:
- Seasonal fluctuations in demand
- Changes in fuel prices
- Shifts in the availability of trucking capacity and the amount of supply in the market
- Increased costs for regulatory compliance
Rates for one-off spot shipments are particularly volatile and will respond really quickly to changes in the market, whereas contract rates tend to be a bit more stable because they lock in your costs for a set period of time.
The Reality of Shipping with a Full Truckload
When you use a full truckload service, you’re essentially committing a truck, a driver and all the equipment to deliver your cargo from the pickup point to the final destination.
That involves a lot of responsibilities, like getting the cargo to its destination safely, on time and in one piece, and making sure you’ve got all the necessary documentation and paperwork in place.
Unlike LTL shipping, where you might be able to add on a few extra shipments to offset the costs, FTL shipping is a bit more straightforward, you pay a fixed price for the whole shipment, and that’s it.
Using Freight Calculators for Smarter Shipping
Using a freight calculator can be a real help when you’re shipping goods. It allows you to quickly compare rates from different carriers, find the best route and avoid unexpected costs that might put off your customers.
But freight calculators will only work properly if you put in the right details, so make sure you’re measuring your cargo accurately, and getting all the other details right too.
Key Takeaways on Truckload Freight Pricing
- Truckload freight rates aren’t just about distance. They’re influenced by loads of different factors like demand and supply and trucking capacity
- Full truckload shipping can be really cost-effective if you’re shipping large shipments or lots of pallets
- LTL shipping rates are a bit more complicated because they involve more variables like freight class and handling costs
- Freight rate calculators are useful tools, but they’re not foolproof
- Understanding freight costs can really help businesses ship more efficiently, rather than just trying to save a bit of money