Understanding the factors that make up a freight quote is a necessary part of managing your logistics budget and predicting supply chain expenses. A freight quote is more than just the cost of gas; it’s a comprehensive fee designed to cover transportation, insurance, labour, and compliance. When you ask Shadow Group for a quote, we’re analyzing a matrix of variables to ensure the price reflects the exact service and resources your cargo requires. By knowing these factors that determine your freight quote, you can optimize your shipments and avoid unexpected fees.
The Key Components of Freight Shipping Costs
Freight costs are built upon two primary categories: the rate determined by the cargo itself and the rate determined by the service required. The combination of these variables gives you the overall rate.
Cargo Characteristics
This covers the physical aspects of the goods. Weight and dimensions are important here, because they dictate how much space the load consumes and the equipment required. For LTL (Less-Than-Truckload) shipments, carriers also use freight classification (or NMFC class), which categorizes goods based on density, stowability, handling difficulty, and liability. A low-density, fragile item typically falls into a higher, more expensive class than a heavy, durable item.
Distance and Route Complexity
The length of the haul between the origin and destination is a primary driver of cost, as it correlates directly with fuel consumption, tolls, and driver labour time. Quotes will also account for the location types—rural or urban deliveries, border crossings, and the availability of backhauls for the carrier.
Types of Freight Shipping Services
The type of freight service you choose fundamentally alters your pricing structure. Choosing the right mode is important when it comes to balancing speed and cost.
- Full Truckload/FTL: This involves reserving the entire trailer for your cargo. The trate is typical a flat fee per mile or a predetermined contract rate. While FTL costs more upfront, it’s generally faster, offers greater security, and is more cost-effective overall for large shipments.
- Less-Than-Truckload/LTL: Your shipment shares space with other loads on the same truck. LTL is priced based on the freight class, weight, and distance. It’s ideal for smaller, palletized shipments that don’t require an entire trailer, offering a budget-friendly option when transit time is flexible.
- Specialized Transport: Services like flat deck delivery for oversized shipments, refrigerated trucks, or heavy haulage require specialized equipment, permits, and additional driver certification. These factors result in a premium rate to cover the increased operational complexity and risk.
Other Costs to Consider
Even after calculating the base rate, there are often additional fees required to secure an accurate quote. These include:
- Fuel Surcharges: Due to the volatile nature of diesel prices, carriers apply a flexible fuel surcharge (FSC) that changes weekly based on market rates, ensuring costs are current.
- Accessorial Fees: These cover services outside of standard dock-to-dock transport. Examples include liftgate service, residential delivery, inside delivery, or charges for detention (when a driver is delayed at pickup or delivery).
- Market Dynamics and Seasonality: Shipping during periods of high demand, such as harvest season or holiday rushes, often results in higher rates due to limited carrier capacity. Conversely, contract rates offer price stability regardless of market fluctuations.
Get Clarity on Your Next Shipment
Navigating freight shipping costs doesn’t have to be complicated. By providing accurate details—especially when it comes to weight, dimensions, and required services—you empower your logistics provider to give you a transparent and competitive quote.
Ready to simplify your transportation budget? Contact Shadow Group today to speak with an expert who can help you optimize your shipping strategy and secure the best rates for your logistics needs.