Understanding Freight Shipping Costs

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When seeking a freight shipping quote, you get a wide array of pricing depending on your questions or how you reply to the shipping company's questions. The freight services dispatcher can often tell how naïve you are about shipping services based on your questions and answers. Here is some basic information you need to know to help you get the best prices on your freight or shipping services.

Types of Freight Lanes

One of the significant factors in determining your shipping costs is whether the carrier already has freight lanes heading to your destination. A freight lane is a route that the carrier regularly covers in their schedule. Freight lanes are referred to as shipping or trucking lanes.

Freight lanes may be point-to-point or connect multiple points in any direction. These lanes can be daily, weekly, or even just occasional routes. If your carrier already has lanes where your freight is heading, the cheaper your costs will be.

Freight lanes include:

  • Local lanes - Local lanes are usually in smaller local areas. These may be routes within a single city or several cities in a localized area. These lanes may connect to regional freight hubs, which allow the drivers to take advantage of flow going to another location. 
  • Regional lanes - Regional lanes are in slighter larger areas. These may still be located within the same state or in a couple of adjacent states in a region of the country. Regional lanes often connect to regional or national hubs. 
  • National lanes - National lanes may go from state to state or city to city. They may go entirely across a region of the country or may form a circle that takes them through several states before returning them to their point of origin. They may be routes between regional or national hubs. 

All lanes streamline or simplify shipping services. 

Types of Quotes

Shipping services issue two different quote types when pricing shipping. The companies base quotes on standard and dynamic pricing. The kind of quote provided will indicate the level of fluctuation you may incur and how long your quote is good for. 

  • Standard pricing - When a carrier has a lane or multiple lanes heading to your destination, they may offer you standard pricing. Although this pricing fluctuates due to fuel pricing and other details of your shipment, it is the most stable of the two types of pricing. 
  • Dynamic pricing - On the other hand, Dynamic pricing is based more on supply and demand and is highly volatile. The higher the demand, the higher the price. Due to their volatility, dynamic price quotes are usually not valid for extended periods. 

These are only a couple of the factors that determine your freight, shipping, or moving services. Don't be surprised by how widely your quotes may vary between carriers. 

For more information about freight services, contact a local company.