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Freight and Rates within the Trucking Industry

In 2009, the trucking freight rates depressed drastically. Trucking freight rates have gone down by over 10% in 2009. Estimates, though, have stated that trucking freight rates will have an upswing by 10% of current costs in 2010 and 2011. This is because the current trucking freight rates has allowed demand to exceed current capacity. It is unfortunate, though, that the rising trucking freight rates have also led to many jobs being lost.

Companies have had to downsize, or go bankrupt, because of the rising trucking freight rates. Fuel, for example, counts for about 55% of trucking freight rates. Also, another added pitfall, concerning trucking freight rates, is that in late summer, 2010, the US government will deregulate fuel prices, which will drive up the trucking freight rates even further.

Fuel accounts for up to 60% of the trucking freight rates bottom line cost of freight hauling. Trucking freight rates usually are quoted to the customer well in advance and if fuel prices rise after the quote is given, the extra trucking freight rates will have to be eaten by the carrier. On the other hand, if the fuel prices go down, the decrease in trucking freight rates will be a boon for the carrier. Either way, trucking freight rates will become so variable that carriers will have to be cautious in quoting their trucking freight rates so there will be an invariable rise in total trucking freight rates to balance out those possible pitfalls.

It is in the consumer’s best interest to do his or her homework on various companies’ trucking freight rates. It is wise to consider the idea of hiring a consultant to advise the consumer on trucking freight rates. This is because there are so many details that can affect trucking freight rates. A few details that can affect trucking freight rates includes understanding the value of shipping, contract pricing, which is directly integral to trucking freight rates, the numerous accessorial charges, available trucking freight rates technology, rebates concerning trucking freight rates, service level guarantees and available value-added services that affect the trucking freight rates.

Another thing to understand is that trucking freight rates are dependent on market rates for merchandise, trucking freight rates also factor in fuel charges and surcharges, miles and costs per lane can easily identify revenue and margin of the consumer companies’ trucking freight rates. The ton-per-mile tax, which affects the trucking freight rates, is calculated by the weight of each truck for each trip, another consideration.

There are basics to think about when trying to negotiate trucking freight rates between consumers and carriers. It would be wise for the carrier to determine some trucking freight rates by determining the loading and unloading environments. Trucking freight rates is also contingent upon identifying packaging and weight of the load. Then, define the trucking freight rates class. Usually, classes in conjunction with trucking freight rates are associated with a pound-per-cubic-foot density, which is directly a part of trucking freight rates. How to determine an estimate on density of the cargo to be shipped will go a long way in determining fair trucking freight rates. Density, and therefore trucking freight rates, is the cargo’s total pounds divided by the cubic feet of the cargo holder in question.

A freight broker can drastically improve the trucking freight rates on the cargo being transported. Freight brokers usually affect the bottom line of trucking freight rates by usually saving the consumer about 25% in trucking freight rates. This is because freight brokers know the costs associated with the trucking freight rates and therefore, can be a stringent advocate to the consumer and the carrier’s trucking freight rates, ultimately lowering the trucking freight rates. Freight brokers work to determine the needs of a consumer in lowering their trucking freight rates and they will connect the consumer to the appropriate carrier to reduce the trucking freight rates as much as possible.

Among freight broker’s services are sorting bulk goods into customized lots, which affect the total trucking freight rates. Some of these services, such as maintaining the age, and quantity of goods concerning trucking freight rates, have helped to improve the efficiency of relationships between manufacturers and customers and this includes trucking freight rates.

The bottom line is that trucking freight rates are determined by everything from beginning to end of the shipment. However, tracking and implementing fair trucking freight rates can also be a humungous undertaking that will ultimately drive up trucking freight rates if the consumer and the carrier are not careful with the trucking freight rates games out there. The global economy relies on the trucking industry and, therefore, the trucking freight rates of those involved.

When demand for products increase, the trucking freight rates will increase meaning that prices will go sky high. If a consumer have less limited options for comparable trucking freight rates for the types of carriers that can be used, the higher the trucking freight rates can be because the limited number of carriers can charge higher trucking freight rates just about as much as they want to. Being in a semi-monopoly service can drive up value-added accessories associated with trucking freight rates and, therefore, trucking freight rates will rise exponentially.

ARTHOR BOX:

For a company that offers fair trucking freight rates, visit www.exfreight.com. Their trucking freight rates are the lowest in the business.

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