Understanding Freight Prices

freight prices

What to know about Freight Prices

One of the most confusing things about shipping freight is understanding freight prices. You may think that you are paying a particular rate, only to find out that you shipped in the wrong freight class, forgot to mark your shipment as a residential delivery and didn’t include a lift gate. Read over the following factors to consider when creating an LTL shipment in order to understand how LTL pricing works and prevent any surprises for you or your customer.

freight prices

Freight Class– Each shipment is rated different depending on the freight class which it ships. Freight classes are based on density and commodity. There are 18 classes that your shipment can fall under, ranging from class 50 (the least expensive) to class 500 (the most expensive). It is important to chose a class based on the commodity you are shipping and it’s respective NMFC #. If you do not know your freight class, you can typically ship based on the density of your particular shipment. ShipHawk has a great tool built into the rating process which provides an estimated freight class. Be careful that you select the correct freight class as your shipment can be subject to expensive re-class fees if not correctly noted on the BOL.

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Shipping Strategy Diagnostic Calculator

shipping strategy

How does your shipping strategy stack up against your competition?

In 2017, if you don’t have a good shipping strategy, competitors will eat your lunch. Amazon continues to invest in their fulfillment strategy and it is crushing its rivals. Delivery expectations are going up, but cost control is more important than ever. Where do you start? Can you leverage shipping automation to improve your ability to scale? There are so many factors to consider such as pricing strategy, fulfillment locations, shipping software and technology, personnel, customer experience, and more.

To determine how you stack up in key strategic areas, use our simple calculator that diagnoses your process maturity and identifies the key areas where you can improve.

As we gather more data we’ll be able to give you comparisons against other companies similar to you in size and freight profile.

Get started on the survey and if you have feedback just let us know.