Full Truckload Shipping Rate
Freight carriers face a unique set of challenges. You want to stay competitive, but you also want the highest possible margins. You want to get your drivers moving, but you need to match them up with loads that are a good fit—and keep them happy with loads that pay well. The common denominator that can help you have it all? Finding the best trucking rates for your drivers and your business. Contact us today for your Truckload Freight Rate.
Truckload Quote
Why do full truckload freight rate change so regularly? To help shippers better understand why truckload freight rates are different per mode, distance, and product, we’ll be doing a blog series that dives into specific cost variables.
We’re starting with full truckload rates (FTL) because it is the most common mode. It is used when a single shipper produces enough cargo to fill up an entire truck. Truckload rates are arguably the simplest mode calculation, using a cost per mile traveled or a flat door-to-door rate. For the most part, the type and amount of product being shipped does not impact the truckload rate as long as the normal freight insurance is adequate, and the total weight is under 45,000 lbs.
Still, that flat rate is calculated using a multitude of variables. The key to being a smarter transportation professional is understanding the inputs that go into truckload rate calculations, then using them to drive future decisions and strategy.
Truckload Freight Quote
1. Distance-Based Pricing
For TL shipments, distance-based pricing is a common approach. Simply put, the farther your freight needs to travel, the higher the rate. Longer distances often result in increased costs due to the greater fuel consumption and operational expenses incurred by the carrier.
One of the advantages of TL shipping is full-truck utilization. In a TL scenario, an entire truck is dedicated to a single shipper’s goods, allowing for a more efficient and streamlined transportation process. This optimization is reflected in TL rates, making it a cost-effective choice for large shipments.
3. Negotiated TL Rates
In many cases, businesses have the opportunity to negotiate customized TL rates with carriers. This means that you can work with the carrier to secure rates that are tailored to your specific needs. Key factors that can be leveraged during negotiations include shipment volume, the frequency of your shipments, and your relationship with the carrier.
