Sunday 24th March 2019,
Freightera Blog
Spotlight

How to Calculate Freight Rates [Infographic]

Freightera January 10, 2019
How to Calculate Freight Rates Infographic

Freight Cost Calculation Used to Be a Pain

Shippers that don’t need to fill a full truck can save big time shipping their freight using the less than a truckload (LTL) service, shipping just a few skids, pallets or crates at a time. Many factors go into calculating freight rates and doing it on a case by case basis is very time-consuming. Freight brokers normally would call transport carriers to find out the shipping rates for their customers. They would have to know the right questions to ask their customers and carriers to get the correct rate information. See our infographic below to learn what goes into calculating freight shipping costs. Once you see the complexity you will understand that getting instant freight rates online is a remarkable advancement from the painful process it used to be. That’s what we have done for you at Freightera, the Expedia-like marketplace, an online platform for shippers with instant freight rates from hundreds of carriers. Just fill out your origin and destination, enter the information about what you ship and freight rates are instantly calculated for you in a matter of seconds. But before jumping to our LTL rates calculator page, please see our graphic below to appreciate what’s being computed on the background.

Freight Rate Calculation

Freight Rates in LTL Shipping Determined by Several Factors

Commodity

Product or material.
All items shipped in the U.S. have a corresponding National Motor Freight Classification (NMFC) number.

Size and Weight

Shipment size and weight including packaging, pallet, skid or crate.

Freight Density Calculator

Transportation fees are based on both gross weight and dimensional weight, or whichever is greater. Dimensional weight is applied when the weight of a package is disproportionate to its size. For example, a box filled with inflated balls won’t weight much, but will take up a lot of space.

Freight Class

Freight Class Calculator is required for the U.S. shipments. Density, stowability (i.e. difficulty storing), special handling and liability (i.e. how perishable or fragile the shipment is) determine Class. Ask Freightera Client Care for assistance via Online Chat or Call: 800 886 4870 Ext. 1

Location Type

If pick-up or delivery location is challenging to access or needs special equipment for lifting and loading or unloading the freight, the freight rate will increase.

Distance

The further you ship, the more time and fuel is used by the carrier.

The differences between freight shipping rates in the U.S. and Canada

Please note that information in this article is based on LTL rates calculation rules in the U.S. and Canada. Calculating freight rates is more complicated in the U.S. where most carriers require shippers to indicate NMFC code and Class. NMFC code and Class are not used in Canada, where carriers use dimensional weight or skid-based rates. In the U.S.-Canada cross-border shipping, NMFC code and Class requirements are typically required depending on the carrier.

Ask Freightera Client Care for assistance via Online Chat or Call: (800) 886-4870 Ext. 1

Additional Resources and Tools:

https://en.wikipedia.org/wiki/Freight_rate
https://www.freightera.com/blog/how-freight-rates-are-determined/
https://www.freightera.com/en/freight-density-calculator
https://www.freightera.com/en/freight-class-calculator

Like this Article? Share it!

About The Author

Freightera offers B2B online freight shipping marketplace in North America with instant quotes from carriers of all sizes and one-click bookings. It serves manufacturers, wholesalers, distributors and other businesses regularly shipping freight.

1 Comment

Leave A Response