Having goods delivered to a location is essential to running a business, but choosing the right method for calculating freight rates isn't always easy.
Many companies offer a freight shipping calculator to try and estimate how much a shipment will cost. But it's still important to understand what factors influence the cost and how prices are calculated.
Let's go over some of the essential aspects behind a standard freight calculator below so that you know how shipping freight rates are determined.
The Importance of Calculating Freight Costs
Freight rates play a vital role in the price of products, so they impact both the companies selling the goods and the consumers. In a competitive market, any edge that a company can gain in terms of understanding freight shipping costs can go a long way to reducing prices and increasing sales.
If you want to accurately plan your budget, freight costs matter. You need to be able to estimate how much something will cost so that you can allocate resources effectively.
As mentioned, you can use a freight cost calculator, other methods are to get a rate schedule that outlines all your predetermined rates or speak to your LTL company directly through email or phone and send them detailed specifics about your shipment. The most customized rates will take just a few minutes more than calculator but will generally be from a pricing minded team member who will examine the details of your shipment and then present you with a detailed quote you can use.
Like a freight shipping calculator building a relationship with your LTL account manager can help you understand the available shipping service options, by showing you which option is the most cost-effective in your situation and where you can reduce potential spending.
Factors That Affect Freight Shipping Costs
When it comes to the cost of shipping, many factors can influence your rates. Understanding these factors will not only help you make better decisions but will help you calculate estimates by yourself.
One of the main factors that a shipping rate calculator considers is the origin and the destination of your shipment. It's easy to understand why the distance between the locations plays a role, but there are less obvious elements.
For one thing, is it going to or coming from a residential or commercial zone? These designations can make access easier or more difficult (commercial zones are usually close to major trucking routes, residential are not). Additionally, the equipment that's necessary for loading and unloading impacts the price.
A freight quote calculator also factors in the dimensions of your pallet. The carrier will want to know the size and dimensions of your shipment before estimating the price, as the space it takes up greatly influences the shipping rates, this is called dimensional pricing.
Finally, special requests or extra services (such as calling ahead before delivery, or having to lower your freight to the ground with a powered tailgate) will increase the price.
How to Calculate Freight Costs
A freight shipping calculator, isn't a sure thing when estimating the cost of your shipment but if designed properly can ensure you include all the necessary details about the shipment when you submit.
Before you start, get exact dimensions of the handling units (these are pallets or crates etc)
You may also need information about the value and contents of the shipment (when crossing an international border). You will need to know what the capabilities are for loading and unloading, and the exact postal codes of the origin and destination locations.
Freight Shipping Calculator Results
Once you calculate your baseline shipping costs, you will need to start looking at providers and figure out what type of shipping you want to use for products and business.
As you can imagine, sea freight and air freight rates vary significantly. As you determine your shipping needs, you will find out which type will be the most practical in your situation.
If you're unsure about your options or about the best approach, you can consult a professional. They provide insights that may save you a lot of money.
Whatever you decide, you can get the best price by calculating your rates ahead of time. You’ll know what goods and services you’re paying for to ensure that you get a fair deal.
Why Choose CSA Transportation
Using a freight shipping calculator is an essential step for estimating the cost of transporting your goods. But you should also make sure to consult with regional professionals with access to a nationwide freight network as this can help you make the right choice.
At CSA Transportation, we have the experience and capabilities to handle your transportation request for shipments throughout Canada and the USA. We can help you with getting a fast freight quote online as well as provide answers to any other shipping industry questions you may have.
Call us at (855) Ship-CSA or fill out a form to get started today.