Calculating heavy haul freight rates can be a time-consuming task as there are many factors involved and it varies from case to case. Most customers end up calling freight brokers who then get in touch with transport companies to determine the shipping rates and quote an accurate freight rate for their customers.
Needless to say, this entire process is incredibly inefficient and stressful. It’s important to note that sometimes with ‘spot quoting’ shipments, you won’t necessarily be provided with all the factors and by the time you’ve scheduled the shipment, the freight rate may no longer be accurate.
In this blog post, we’ll discuss some of the factors that are involved in quoting heavy haul freight rates. Please note that we won’t be covering actual rates and will only be focusing on the determining factors.
1. Time of Year
The time of year you’ve scheduled your shipment will contribute to the total cost. Freight rates can change on a monthly, weekly, and even daily basis. Manufacturers often try to schedule shipments at the end of the month to acquire accounting benefits which is why demands for trucks increase around that time and consequently the rates increase as well.
How to Calculate Heavy Haul Freight Rates
2. Fuel Surcharge
Ever since we faced a dramatic increase in the price of diesel, carriers have begun adding a fuel surcharge to freight rates. As fuel costs keep increasing, FSC (fuel surcharge) is added to all the shipments. Shippers and carriers alike are notified about of the updated fuel costs every week and this cost is then added to the base RPM.
3. Freight Class
U.S. shipments also require shippers to indicate freight class as well as NMFC code. Some factors that determine Class include stowability which means how difficult it is to store the shipment, special handling and liability that’s used to depict how fragile the shipment is, and the freight density.
Even though the bigger the shipment, the more it can cost, the weight also plays an important role because more fuel is required to haul heavier equipment. It’s important to note that oversize and overweight hauling can also lead to additional costs.
The freight rate will also increase if the pickup or delivery location isn’t easily accessible and special equipment is required to lift, load, or unload the freight. Not only that, the distance you’ll need to cover and the time it will take the shipment to be delivered is also directly associated with the fuel used by the carrier.
4. Additional Services
There are a huge variety of accessorial charges that can influence the freight rate. Some of them are listed below:
- Driver Unload
- Lift Gate
It goes without saying that the additional services required for the shipment can also lead to an increase in the total cost.
Once you’ve had enough experience, you can become an expert at calculating freight rates for most types of loads accurately. However, mistakes are inevitable and unforeseen circumstances can lead to a dramatic increase in the cost, which is why you need to take a proactive approach to avoid any potential hardships that are easily preventable.