Freight price is the rate at which a particular shipment gets delivered from one location to another. Freight rates continuously change as it depends on a series of intertwined factors. Therefore, it is not easy to predict the shipping rates. Freight price consumes a large chunk of returns very quickly, and if you fail to know the determinant factors that make up the freight charges, profits could drain out fast. Although fuel prices and changes in demand and supply impact the freight rate fluctuations, many other factors assume considerable significance. Indeed, as mentioned above, fuel prices affect the truckload rates and, so do the change in demand and supply. Any forecast related to a decline or increase in supply and demand is challenging. For example, a sudden unexpected change in the economy can impact truck freight rates when it demands transportation. Also, the availability of vehicles and drivers influences supply in all situations.
Factors Influencing Freight Charges
Whether a sender needs to ship domestically or internationally, a handful of factors determines cargo shipping rates. Let’s check out each of them.
1. Weight and Dimensions of a Shipment
Freight rates change based on the weight and dimensions of the package. To be very precise, when the package is larger, the sender has to pay additional transportation costs. The same is the case with weight as well. If a package is heavier, the higher will be the freight rate. It is not possible to change the total weight of the shipment item. However, choosing an appropriate package that fits the cargo perfectly inside would be helpful. Make sure that the selected package is sufficiently good to hold the products. However, it is close-fitting so to keep the dimensions to the least. Besides, selecting a package that fits the products snugly inside helps prevent damages caused due to shaking and jiggling. Hence, choose packages wisely that some of them can add up to the weight. Some packages and filler types come with very lightweight and assured quality, which would help to reduce the overall weight and dimensions to keep the freight charges to the minimum. Always keep the package and filler weight low to avoid paying unnecessary costs which, further add to overall shipping costs.
2. Distance Between Pickup and Destination
The longer the distance between the pickup and destination, the freight rate will be high. The geographical location, complexities in delivery and capacity also influence shipping rates. For instance, if you are own an eCommerce store and plans to outsource fulfilment and shipping to third party shipping companies, make sure that you depend on a delivery partner who has an extensive network of fulfilment centres in most strategic locations. An experienced shipping company help reduces road freight per km by strategically positioning their fulfilling centres in the most significant areas, everywhere. Under such circumstances, the distance between the origin and destination is minimum and eliminates the need for any additional payment based on the distance travelled. Also, check if the shipping companies who offer eCommerce delivery solutions have fulfilment centres near the areas where you deliver more frequently. On boorna.com, you can use the most advanced shipping calculator for accessing the rates, and it will return the lowest rate available for transportation from our partner courier services. We take only the volumetric weight and the distance between origin and destinations for calculating the shipping costs.
3. Efficiency, Speed and Flexibility
The rising popularity of same-day delivery and next day delivery among customers made delivery turnaround time very low. Offering flexibility regarding delivery is not just hard, but it can also affect the freight rates. Therefore, route optimisation, minimising the idle time of drivers and the stops become vital to reduce the costs associated with the transportation of shipments. Flexibility in terms of pickup and delivery times have to watch closely. Here as well, partnering with experienced third-party logistics can help you a lot. Indeed, they have mastered meeting the delivery turnaround time- be it domestic or international shipping freight. At boorna.com, we have relied on complex algorithms and state-of-the-art technologies for optimising routes, driver efficiency to help improve delivery speed while saving lots of money, which otherwise would have to add to freight charges.
Be wary of these most vital factors influencing freight rates in domestic and international shipping. Even though these elements are hindrances in making affordable shipping a reality, there is plenty of room for tweaking to minimise the freight charges to a great extent. At boorna.com, as aforementioned, we use the most advanced shipping calculator to arrive at the lowest rates for shipping. With strategically located hubs, advanced route optimisation techniques, monitoring for driver idle time, vehicle maintenance, we maintain our operational efficiency at a high level to focus on reducing the turnaround time with an ultimate view to reducing shipping rates. Book your loads on boorna.com and enjoy benefits in the form of cost and time savings while you exercise complete control over the goods in transit via our tracking online facility.