Learn Why Freight Rates Fluctuate

Moving is never a cheap affair, but it doesn’t have to break the bank. Various factors affect how much moving companies charge for their services, including weight, size, and distance traveled. Truckers also rely on these factors when determining how much freight they can move over a given route in a day.

Weight

The freight’s weight determines the fuel and labor required to move freight from one place to another. The more weight means that the truck must transport more to have enough left over for other stops. When moving companies are given a weight limit, they often charge by the ton rather than by the actual weight. Weight is the most common factor upon which trucking companies can increase the fee.

Size

The size of a truck is expressed in cubic yards, meaning that a 1,000-cubic-yard truck could transport 1,000 cubic yards of freight. The amount of weight a truck can hold is directly related to how many widgets or bricks are being moved, causing most trucks to be too big for the average shipment to be brought on the average move. Shipping companies often depend on the load size to determine how much they will charge for a move, although extra “stuffing” and padding may be used when the shipment is too large.

Distance Traveled

The distance traveled is also one factor determining If distances are increased from one city to another, fuel costs will also increase. Trucking companies factor in these changes and adjust their rates accordingly. The distance most often affects trucking companies and cargo ships, while air carriers rarely account for distance traveled when determining the cost.

Fuel Costs

As fuel prices rise, trucking companies raise their rates to compensate. The base price of a move is not affected by fuel prices, but the extra costs involved will depend on the change in gas prices. Inflation accounts for higher rates, while deflation decreases the cost. For marine cargo ships, the price of fuel and wages are often combined, so that freight rates are not directly affected.

Toll Costs

Toll charges are also included in the final moving rate as they are an additional attribute to the distance that must be covered. Trucking companies factor tolls into their values and charge extra for customers who may not know the tolls they must pay with each move. Therefore, the price of a vehicle will correlate to the number of tolls and fuel costs. For marine carriers, the floating toll is often prepaid for the move, and as such, there is no additional cost to the customer. However, for over-the-road truckers, these are usually re-calculated after each move.

Hauling Fees

Hauling fees are also included in a trucking company’s rate as they are a non-reassuring charge that trucks must pay when they pick up and deliver freight. Hauling fees are often offered by third-party companies, which charge both the trucker and the customer for services rendered to the customer by a member of the trucking company. For example, if a hauler accepts all the calls for a particular carrier and provides those calls, then there is no additional charge for this service to the carrier or customer. However, if a hauler does not provide these calls and charges the carrier for them, that is considered a trucking company’s service.

Carrier Concessions

Carrier concessions are another form of recycling, where the trucking company will charge the customer for a service rendered to the customer by the carrier. Some of these fees include: fuel, idle time, line fees, and equipment and facilities use. This does not include a third party that charges for services provided by the carrier. For example, if a customer is charged for line downtime, they are paying someone to wait when the driver drops off or picks up freight at least once.

Timing

Timing affects the final price of a move. Moving companies are willing to charge less for moves completed during off-peak hours or low demand. Holidays and spring break are also considered to be peak times, and as a result, they will cause a price increase.

Complexity

The complexity of a move is also a consideration of how much shipping companies charge for their services. For example, shipments requiring special equipment or more physical labor will cost more to move due to additional expenses. Although the type of freight being moved usually determines the complexity of a move, it is sometimes up to the customer to decide what they are willing to pay for their services and products.

The Bottom Line

Although the cost of a move can be both a blessing and a curse, knowing in advance what the price of moving services will cost can help alleviate unnecessary stress. Knowing when to hire movers, how much to expect to pay for moving goods at sea, and when to hire licensed movers is part of being fully informed as you make your move. So talk to us today to have our experienced moving team move your belongings. We’ll make sure you get the best value for your money.