Truck Load Shipping Rates - How Are They Calculated, Compared, and How to Reduce Them

You might think that initially truck load shipping rates would be easy to calculate, since basically the vast majority of carriers do the calculation based upon mileage. And that is partially true however, there are a lot of factors that come into play. So let's try to demystify the process, in order to become a bit more informed about the subject, and better equipped to reach a more informed decision on the rates that you are presently receiving.

Truck Load Shipping Rates - How Are They Calculated, Compared, and How to Reduce Them

Bosch Power Tools GMS120 Wallscanner Video

Bosch Power Tools GMS120 Wallscanner Video

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Bosch Power Tools GMS120 Wallscanner Video
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Bosch Power Tools GMS120 Wallscanner Video

Bosch Power Tools GMS120 Wallscanner Video

Bosch Power Tools GMS120 Wallscanner Video

Bosch Power Tools GMS120 Wallscanner Video

Now, the first thing to do in order to compare the truck load shipping rates you are receiving from various carriers, is to learn how to use Google Maps. Google maps can be found by going to Google.com and looking for the Google maps tab on the upper left side of the page. Once there, you can calculate the mileage between the two points that you are shipping. This will give you a constant that you can use to determine what you are paying per mile. This is a great way to do a comparison, without having to invest in PC Miler that the industry uses that can cost as much as 1500 dollars. By the way, since you are using Google maps and establishing a price based upon one constant, the fact that PC miler may be more accurate ( by a slim margin by the way )is of no consequence to the numbers you are going to get as a result of this exercise.

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Truck Load Shipping Rates - How Are They Calculated, Compared, and How to Reduce Them

So now that you have a way to compare the truck load shipping rates you are receiving, based upon a rate per mile as carriers do, can you use this rate for all of your truckload shipments? Well no, since a few other things have to be taken into consideration. The first of which, would be the total number of miles to each destination. I have always categorized shipments as being short hall 0 to 500 miles, medium hall 501 to 1000 miles, and long haul 1001 plus. If you have shipments that vary in mileage, and are within these 3 categories, you will start seeing a pattern were prices will be closely related in price range within those groups.

Truck Load Shipping Rates - How Are They Calculated, Compared, and How to Reduce Them

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Another issue is if the carrier is doing an outbound or inbound load. In other words, if you are in Montreal and your shipment is heading to Chicago, you would call it an outbound shipment. However if being based in Montreal and your shipment is to be picked up from Los Angeles and returned to your city that would be considered and inbound load.

Why is this important? Well, carriers usually will charge a bit more out of their home location so that they can, if required, accept less revenue coming back. Assuring a fast turnaround. Now this sometimes can be affected when dealing with cross border cargo supply and demand. When there are reduced exports from a country, due to exchange rates, but a lot of imports, as in recent months between the United States and Canada. Carriers feeling the imbalance are willing to head outbound for much less, knowing that there's a lot of freight inbound from the USA.

Now as you can see, there are a lot of things that interplay in truck load shipping rates, and why they ebb and flow at any particular point in time. What a lot of manufacturers a doing today, is that they are contacting third party logistic firms, otherwise known as load brokers, who know the inns and outs of the market. I would recommend even contacting a few, and as you work with them, you will probably feel comfortable with 1 or 2. At that point you will definitely be ahead of the game, in getting competitive truck load shipping rates form both, thereby securing a competitive rate for your transportation needs.

Truck Load Shipping Rates - How Are They Calculated, Compared, and How to Reduce Them

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Self acquittal arrangement of aggregate burden on barges- By Vibrafloor

Self acquittal arrangement of aggregate burden on barges- By Vibrafloor

Tube. Duration : 1.35 Mins.

Self acquittal arrangement of aggregate burden on barges- By Vibrafloor
This animation shows the application of Vibrafloor to self discharge barges loaded with bulk cargo. Rates of 1.000 Ton per hour of woodchips (bulk density: 0,35 ton/M3) can be achieved by this application. See www.vibrafloor-latam.com and www.silexport.com
Self acquittal arrangement of aggregate burden on barges- By Vibrafloor

Self acquittal arrangement of aggregate burden on barges- By Vibrafloor

Self acquittal arrangement of aggregate burden on barges- By Vibrafloor

Self acquittal arrangement of aggregate burden on barges- By Vibrafloor

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