Shipping Cost — What Is It Based On?
Shipping cost can be expensive, but there’s a lot to take into consideration.
Some factors that go into shipping costs are:
- when shipping something big and heavy, you get charged for the extra space it takes up
- the fuel surcharge
- the hourly wage of the driver
So if the wait time is significant, you get charged for how long that driver has had to sit at a dock to pick up your shipment.
Shipping cost associates with everything that you’d think about. Say you have a large truck. Those trucks that usually move cargo run about $150,000. So, you have to amortize that across the life of the truck. And there are updates to regulations as far as what kind of trucks you need.
So, trucking companies need to be more consistent in updating their equipment.
That gets taken into account when evaluating shipping costs.
As well as:
- the cost of gas
- how long the shipments going to take
- how long the driver has to wait at your dock to pick up your shipment
There’s a lot of factors, and that’s why shipping costs tend to be not as low as it used to be.
It’s All About the Shipping Process
Shipping cost gets calculated based on:
- the weight and dimensions of the shipment
- Origin and destination
- if your shipment takes up a certain amount of space, that’s taken into account
- Weight (you’ll get charged a little bit more if it’s heavy)
- Extra accessories or services provided. For example, if you need a forklift to get the shipment off the truck.
Those things get taken into consideration when you get a shipping rate.
To pay the lowest shipping cost, it requires some research. One way to do it is to google, how to find a cheap shipping rate. But, a lot of times people have the most success when they go into a digital marketplace or a load board. That’s where trucking companies are selling their shipping rates. They are trying to beat each other.
So for instance, Teknowlogi has the time marketplace where you can sign up to go in. You have a host of people trying to sell their freight rates and all in one place. It eliminates the need for going to many carrier sites or trucking companies’ sites. Then having to log in, try to find the best rate, and do your research.
A lot of these digital marketplaces bring all the competition to you. And that’s the best way to check whether you’re getting the best price.