Do you want to calculate the freight cost and have full control over your expenses? The shipping quote freight varies depending on the shipment details. While there is no one-size-fits-all solution, a few factors must be considered. 

Which factors affect the freight cost?

The weight and volume, distance, freight class, transportation mode, fuel costs and taxes will impact the freight cost. In addition, we explain how.

Weight and volume

The weight and the space the freight takes in a trailer will affect the freight costs. The package length and width is multiplied by the height, and then divided by a standard divisor. 

Distance

The final destination of the shipment influences the fee. The carriers will define the price based on the shipping zones. As the freight goes further, the more you will need to pay. You can research the zones and learn more about this to predict the costs.

Freight class

There are 18 classes of freight defined by the National Motor Freight Traffic Association. The cargo gets classified based on liability risk, ease of handling, storability and handling. The higher the class, the less dense and higher value an item has. For carriers, this means more handling costs and insurance. Therefore they will charge higher pricing for higher freight class.

Transportation mode

Is your cargo traveling by air, ocean, rail or road? The transportation mode will dictate the final price. Air freight is the fastest one, but remains to be the costliest. Ocean is a cost efficient option for the deliveries that aren’t time sensitive. Road and rail are perfect options for domestic transportation that offer flexibility.

Calculate freight costs

Compare shipping rates

You can put your details in the Transportation Management System and get a list of options. This lets you assess different offers and pick the most suitable one. 

Automation

Automated tools can help you pick the service that matches your needs and budget. Despite helping you lower the freight costs, automation saves time and reduces the chance of error by manual work.

Freight class calculator

A freight calculator will calculate the price based on the storability, density, and ease of handling. 

ROI calculator

The ROI calculator can help you assess which option offers savings. It can help you make better decisions.

How to reduce freight costs

Cutting down on the freight costs is beneficial for your business. You can offer a cheaper product and become more competitive on the market or increase profitability. Shaping the proper strategy requires a few thoughtful approaches. 

• Consolidate shipments: Grouping smaller shipments into one can help you cut down the shipping costs. 
• Negotiation: If you work with that carrier often, use your power to negotiate better rates. You can achieve lower costs and better terms.
• Contract review: Things can change, so stay updated to control your costs. Changes in the fees, surcharges and carrier regulations can cost extra.
• Technology: Rely on the latest innovations, such as the Transportation Management System, to enhance cost efficiency.

Final take

Calculating freight costs is essential for maintaining control over your shipping expenses. You can make informed decisions that optimize your costs by understanding the factors that influence pricing, such as weight, volume, distance, freight class, and transportation mode. Tools like ROI and freight calculators can simplify the process, offering automation and better cost-efficiency. Strategies like consolidating shipments and negotiating with carriers can further reduce your freight expenses. Implementing these strategies can help businesses stay competitive and profitable while keeping shipping costs in check.