There are three key factors that impact the price of your shipping when it comes to freight. But what are these factors and why do they have such a major effect on your freight fees? Here, we'll dive into the three major things that can impact your freight pricing.
- Mode of Transport: When you ship your products to warehouses across the country, your products need to get there somehow, and certain modes of transportation for freight are more expensive than others. Currently, the U.S. makes up the biggest chunk in parcel shipping costs with average spending of $119 billion out of the $317 billion total spent on parcel shipping globally. The most expensive options for transport include planes and ships, which is why many companies often opt for rail or truck. If you do decide to ship your cargo by truck, make sure to take advantage of any free offerings your carrier might offer. For instance, FedEx offers a one-time freight pickup at no additional cost for first-time shippers.
- Weight of the Cargo: Another key factor that significantly impacts your freight rate is the weight of your cargo. This is because certain modes of transportation can only hold so much weight. Even if the cargo is small, it could potentially have a high freight rate because it keeps the truck, rail, ship, or plane from carrying additional cargo.
- Distance to the Delivery Destination: For your mode of transportation to get from Point A to Point B, you'll need gas and other fuel. That's why the amount of distance between your two destinations will yield a higher or lower freight rate.
Looking for freight pricing support? We've got you covered. AFMS offers a wide array of services to help protect your business from overcharges when it comes to shipping. From freight pricing support to parcel shipping contract benchmarking, we have everything you need to put your company on the right foot. To learn more about our parcel services or to schedule a parcel audit, contact AFMS today.