Different Freight Rates For Different Modes

Logistics is all about getting freight where it needs to go – whether that is by truck or boat or air plane. Shippers have many choices for how a delivery can be made. All are unique, yet each has the same goal of getting product to where it needs to be and on time.

What’s not the same is how freight rates are calculated for the various shipping methods.

Key to understanding freight rates is knowing what factors influence rate calculations. These factors are primarily distance, transit time, fuel, and accessorial costs.

Distance is the amount of miles a shipment travels.  The greater the distance, the higher the rate since other factors like time, labor, and fuel will also be higher. Transit time is how long the freight takes to get from point A to point B. Each mode has its own transit time and may have different expedited offerings to reduce that time......(More)