Home » What Factors Affect the Freight Rates the Most?

What Factors Affect the Freight Rates the Most?

by Nathan Zachary

Even though the rate of the freight forwarding company changes, the impact of the freight rates on your business remains the same. If you want to ensure that your goods are being transported from one place to another without any surcharges in the freight rates, you need to create a budget that will play an important part in the supply chain and logistics company. Planning undoubtedly becomes a time-consuming process because the rate can fluctuate more than 50%. 

As per reports, freight rate is known as the price of delivering goods from one certain location to another. The freight rates’ depends on the cargo, the transportation mode you’re planning to choose, distance and weight of the cargo. However, many shipping services also consider the cargo’s volume and weight to determine the price. 

But what you know about the factors that are capable of affecting the freight rates, you will be able to solve numerous problems. Here are the factors that can affect the overall freight rates. 

Speed and Flexibility

Since the coronavirus pandemic, the delivery times have been shortened to meet the global market goals. Not only same-day but also overnight deliveries are possible. Therefore, flexibility regarding transportation methods has become tough. But keep in mind that it will have a large impact on overall freight rates. While planning delivery strategies, it’s extremely important to optimize the routes, reduce delays and idle times of the driver, and boost deliveries to a specific location. 

When you work with a professional 3PL freight forwarding company, they will help you create strategies for speed and flexibility. You also need to ensure the company is offering online container tracking methods so that you can know the position of your goods in real-time, which will help you manage supply chain management. 

Density and Weight of the Shipments

Density and weight will have a huge impact on the freight class as well as the overall freight costs. When the package is bigger, it will be denser, and you need to ensure more room for its transportation. Whether you’re shipping by ocean, air, or land, as long as more workforce and room are needed to transport these goods, you need to pay more for these shipments. If you want to mitigate costs, make sure you choose low-weight and high-volume packaging. You also need to choose freight forwarding companies that provide great customer service as well as efficiency for their clients. As per Indeed, customer service is important.


The distance that the goods need to travel will undoubtedly have a significant impact on the overall price rates. When the distance is longer between the pickup point and drop point of the containers, you need to pay more than usual. However, sometimes the freight rates depend on the transportation move, geographic location, complexity, and delivery capacity. When you choose experienced freight forwarding companies, they will help you come up with effective strategies that will allow you to mitigate costs due to the distance. Holding deliveries in unfavorable situations, cutting down the overall number of deliveries and outlying the areas will help you reduce costs. 


These are the factors that affect freight rates. What are your thoughts? Make sure you let us know by commenting below. 

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