The cost of freight transport is influenced by these ten main factors. Here we look at each of them, and how they affect the price you pay for your next shipment.

1. Fuel costs

As you might expect, the cost of fuel is a big factor in determining freight transport rates. Carriers need to be able to afford their expenses and still turn a profit. Fuel is one of those expenses, and when it goes up, carriers have no choice but to raise their prices accordingly.

In fact, this is what happened during the last decade and transportation fuel costs increased by over 50%. That’s why it’s important for carriers not only to keep a close eye on these fluctuations but also plan ahead so that they can adjust accordingly whenever necessary.

2. Demand for freight

Demand for freight is a factor in the price of shipping. The state of the economy, the weather, and other factors can influence demand for freight. For example, if it’s raining outside you’ll probably want to stay inside and not go anywhere, so your demand for goods decreases; this will cause shippers to charge less money for their services. If people are on vacation or have been out of work because their company went out of business then there will be less demand for them to travel across the country in order to get new jobs at another location; this will cause shippers (and airlines) to charge more money because they have fewer people willing to pay their prices.

3. Distance between origin and destination

The distance between origin and destination is the main factor in pricing. This is true for all modes of freight transport, whether it be rail, air or water.

Distance increases costs because fuel consumption is higher over longer distances and more time is spent on the road. More time also means more loading and unloading as well as waiting in queues at ports or borders.

4. Time of year

• Time of year is another factor that influences freight transport rates. The demand for freight fluctuates throughout the year, and this causes prices to rise and fall accordingly. Freight transportation rates are typically highest during peak season (summer) and lowest during off season (winter).
• For example, if you’re shipping a large number of packages during Christmas season, you’ll likely pay more than if you were shipping those same packages in January or February. That’s because more people are purchasing goods online at that time of year—and your company will want to move all those products quickly in order to keep up with demand!

5. Mode of transport

The mode of transport has a direct effect on the cost of freight. In order to determine the rate, you need to choose which mode is best suited to your requirements. The most expensive mode is air freight transport and the cheapest is rail freight.

The most popular modes are road and sea as they offer greater flexibility in terms of transit times and access to remote locations.

Air freight transport provides fast delivery but many items are not allowed on planes due to security or size restrictions, so this may not be suitable for all products.

6. EU Trade Tariffs

• What are tariffs?
• Tariffs are taxes imposed on imports. The EU has a number of trade tariffs that apply to goods entering the European Union (EU). The tariff rates vary according to the type of product and where it comes from. Tariffs can also be applied, at an ad valorem rate or specific duty, including preferential trade arrangements such as those between EFTA members or between certain countries within the EU.
• UK exports and imports

If you live in the United Kingdom (UK) or export goods from there, your company will have a better idea about how tariffs affect your business than we do. You may even want to contact your local Chamber of Commerce for more information on this issue.

7. UK Trade Tariffs

The UK trade tariffs are a tax on imports. They are imposed by the government of the United Kingdom and can be applied to a product once it has reached Britain. The tariff is calculated as a percentage, based on the value of the product before it reaches Britain and is applied at that point.

8. Volume

The volume or cube of your shipment is a major factor in the cost of freight transport. Volume is calculated by multiplying the weight of each item by the number of items. It’s also known as measurements (length x width x height). In general, heavier shipments are more expensive per mile than lighter ones even though they may be traveling fewer miles.

For example:

• If you have one pallet weighing 3,000 lbs. and 4 pallets weighing 1,500 lbs. each going from Chicago to Dallas on a national truck line that uses 10 foot trailers then how much would it cost? We can assume all four will fit inside one trailer so we just need to multiple all together, plus fuel surcharges if applicable.

9. Working days allowance

• Working days allowance. The number of days between the day your shipment is booked and the day it is due to be delivered. If you book a shipment on a Friday and it’s due to be delivered on a Friday, then the working days allowance will be zero.
• Maximum number of working days allowed for delivery. This is usually set by each freight company, so check with them to know what their maximum number of working days allowed for delivery is before booking your shipment on time!

10. Size of Vehicle Used (Lorry Size)

The larger the freight transport vehicle, the more expensive it is to operate. This is because of a number of factors:

• Fuel consumption is higher for larger vehicles
• Maintenance costs are higher for larger vehicles
• Insurance costs are higher for larger vehicles
• Depreciation costs are higher for larger vehicles
• Licensing and permits can be prohibitively expensive in some regions

Getting the best price is a balance between all ten factors

In the end, getting the best price is a balance between all ten factors. It’s impossible to say that one factor is more important than another because they all influence each other.

In general, however, the most important factor in determining freight rates is distance between origin and destination. The further your goods must travel to reach their destination, the more you will pay for transport costs. This can be offset by using a less expensive mode of transportation or shipping in bulk with other shippers who are making similar trips (such as through intermodal shipping).

Conclusion

Shipping freight domestically is a complex operation that requires the consideration of many different factors. The price you pay for shipping will be dependent on several of these factors, but it’s important not to lose sight of the big picture. If you have a keen eye for detail and want to make sure your company gets the best deal possible, then it’s time to start looking at all ten factors influencing domestic freight transport rates.