Moving freight begins with finding a fair rate. Carriers want to avoid losses, and shippers want to avoid overpaying. Learn the key details of freight rates before booking a load.

What affects freight rates and how they work?

Research the market and find the fair rate before moving a load. Many factors affect pricing, so consider them all when setting your target rate.

1. Equipment Type

Remember what equipment your shipment needs. Flatbed and van prices can differ a lot on the same route. If the load is unusual (oversized or needs special gear), include that in your rate.

2. Season

Rates follow the same yearly pattern, with seasonality driving prices. Loads cost much more in the summer peak than in February.

3. Fuel

Monitor fuel prices closely and remain alert to any sudden spikes or drops. Fluctuations in fuel costs directly and almost immediately influence freight rates nationwide. Maintaining this awareness gives you the insight to set fair pricing and helps ensure you aren’t being taken advantage of.

4. Lane

This is #4 on our list but might be the most important. Location mainly determines the price: some places are expensive to ship to and cheaper to ship from. Always check the load-to-truck ratio at origin and destination before setting a rate.

5. Urgency

After researching and setting a target rate, decide how urgent the load is. If pick-up and delivery are flexible, you can accept the market rate. If it must ship immediately, add a premium to the rate..

There are many different situations that can cause rates to fluctuate, such as hurricanes, shifting fuel costs, new regulations and more. Keep an attentive eye on the news and industry trends to stay informed about evolving market conditions and confidently navigate rate fluctuations successfully.