Monday, August 31, 2015

Freight Pricing Simplified

Freight pricing is a bit confusing especially when it comes to less than truckload companies. LTL companies use a variety of methods to determine the price to charge for your shipment. The most common way this is done is using freight class. Rules and guidelines are in place for the trucking industry to use to determine the classification of shipments. This directly affects how much you pay to ship an item.
Not only does the classification on your shipment affect how much you pay so does the shipments density. Density is calculated by determining how many pounds per cubic foot your shipment is. This allows the carrier to figure out how many other shipments can also be put on the truck. Less than truckload companies load several LTL shipments onto one truck to make a full trailer. The lower the classification of your shipment the less it will cost to ship.
Another factor that helps determine what you are charged is the items likelihood to be damaged. Fragile items or items with a lot of bulk fall into freight classes between one hundred twenty five to five hundred and account for most expensive shipments. Your service provider is knowledgeable in these differences and will assist you in figuring out the freight class charge of your shipments.
Some brokers are granted “Freight All Kinds” pricing with certain carriers that they contract with for LTL shipping. This means that higher classed items are shipped at lower cost classification. The only way an individual shipper can benefit from this is to ship though a broker such as those you can find online. Trucking companies do not offer direct discounts to private individuals.
Shipping a full truckload is usually calculated by mileage. The company figures in all the factors such as operating costs per mile as well as a markup that adds up to the amount you pay. You will realize bigger logistics savings when working with a freight broker. Brokers work with many trucking companies and can instantly shop for the best price to send your shipment. Freight brokers can always work out a better deal than you can as a private shipper. Dealing directly with shippers is more expensive by upwards of fifty to eighty five percent over what brokers can negotiate. The most private shippers can negotiate is usually five percent.
When choosing a broker to work with to handle your shipments look for other qualities other than a low price. Find a broker that only works with trucking companies that have the same customer service values as you do. Work only with freight who work with shippers that value on time shipments and consistent quality service.
Jefferson Diversified Group, LLC is a Global Logistics expert offering LTL shipping and more. Check out available rates today at