What Determines Freight Rates

The first question that comes to mind when shipping your goods is how much it will cost you. Several factors affect the freight rates when transporting your items.

Factors that Affect Freight Rates

The Mode of Transport. Your choice of transport in shipping your product will dictate the freight fees. It is a fact that various types of transportation have their own range of charges, which is influenced by the incurred costs during the transport of items. Regardless of the type of transport that you choose, you should be able to meet the agreed freight fees. You must also be able to supply for the associated freight rates taking into account the factors that made you decide to choose a specific mode of transport.

The Weight of the Freight. Aside from your choice of transports, freight charges of logistics companies differ in terms of the weight of cargo. These companies have their own set of guidelines on setting the fees depending on the cargo weight. It always follow, though, that the heavier the cargo, the higher is the freight charge.

If a commercial plane is required to transport the items, the weight plus the volume of the cargo is taken to determine the freight costs. More associated freight fees are added with bigger cargoes. The reason for this is that commercial planes have a limited capacity, and the shipping method is quite expensive. If you want a cheaper freight fee, opt to have a ship to transport your cargo.

The Distance to the Shipping Destination. Charges incurred differ depending on the distance from the point of origin to the point of transport. Items delivered to a nearby destination have higher freight charges compared to goods delivered to a far-off destination. However, the total freight costs are more expensive to items delivered to distant areas.

Some logistics companies offer promotional freight charges on certain occasions or times of the year, routes or customers. A new customer may get a special rate, as the company wants to establish loyalty. Otherwise, the company can offer a promotional rate if the ship is not fully loaded and wants to get profits from the trip. The standard and promotional freight rates are posted on their websites and trade publications.

Freight charges may also vary depending on the service that you need to use in delivering your cargo. These include services like residential or terminal-to-terminal deliveries. If you want your goods delivered to your customers’ doorsteps, then be prepared to pay for higher freight fees compared to items delivered in terminal areas.

The economy also affects freight rates, but there is certainly a way to save on costs. Search the internet for a trustworthy logistics company and discuss your requirements. They may be able to propose a rate that suits your budget. Customer-oriented Avrio Logistics Company ensures that they get to meet their clients’ needs and satisfaction. Talk to them; they are just a click away, and get to find the suitable freight costs for your needs.