Whether you are a business or a private individual looking to send a shipment far away, you will find that freight rates are constantly fluctuating and may be wondering why this is the case. More so for businesses that may frequently need to send shipments as the costs can have a significant impact on their bottom line. Understanding the basic factors that can impact the freight quotes you receive could help in making more cost-saving decisions.
Distance, a factor in freight rates
The further away your shipment must travel, the more expensive the freight quotes will be. You may however see some variation between providers as the rates may vary depending on the type of transport used, the geographical location, and capacity. The costs here may be reduced if you can find a route that requires fewer stops and leads to fewer outlying areas.
How size, weight, and density affect freight quotes
Transport costs are strongly affected by the size, weight, and density of shipments. This is because it can impact freight class, no matter if your shipment is going by air, rail, sea, or road. Where the shipment is bigger, heavier, and denser, you can expect the costs to be higher. To help limit this factor, consider how you package your shipment to reduce its dimensions and use of more lightweight, but strong, packaging.
Speed and freight rates
Logistical choices can impact how fast a shipment gets to its destination and the costs attached. Air transport is usually the fastest over great distances. It is however also often the most expensive choice. Many providers also offer options for expediting deliveries. These are the same-day or next-day delivery options that you will find are more expensive than standard options. This means that if you decide that speed is a priority, you will need to budget accordingly.
Freight rates are subject to unexpected disruptions
It is important to account for disruptions that may affect transport costs. Issues like storms during winter and pandemics have often resulted in disruptions and delays that impact freight costs. This is because providers often must make other arrangements like rerouting shipments or arranging for storage until the problem can be resolved. Note that these disruptions may not appear in your quote but may still lead to additional charges late
Freight quotes and seasons
There are certain times of the year when there is stronger demand for freight services. These seasonal trends mean that if you ship when demand is at a peak, you can expect the freight rates to be higher. It is advisable to consider this factor when scheduling freight services and try to avoid peak periods when not only the costs are higher, but there may also be backlogs that can result in delays. This is especially common where the shipment must travel across borders and through customs.