Freight Rate / Freight Pricing

A freight rate is the total price a carrier charges to transport goods from point A to point B. It's the number that shows up on a quote, gets locked into a contract, or fluctuates on the spot market – and it's the single biggest variable in a shipper's transportation budget. Freight rates are rarely one clean number. A typical rate is built from several components: the linehaul rate (the base charge for moving freight over distance), a fuel surcharge that adjusts with diesel prices, and any applicable accessorial charges for services like liftgate delivery, inside pickup, or detention time. For LTL shipments, the rate also factors in freight class, shipment weight, and density. For FTL, it's driven more by lane supply and demand, equipment type, and seasonal capacity.

Understanding how freight rates are constructed matters because it directly affects your ability to negotiate, audit invoices, and forecast spend. A shipper who only looks at the all-in number misses the levers – fuel surcharge caps, accessorial caps, minimum charge thresholds – that actually move cost. This is why rate benchmarking against market data is essential: it tells you whether your contracted rates still reflect reality or whether you're overpaying on lanes the market has repriced.

Freight rates shift constantly. Contract rates provide stability for 12 months but may drift from market conditions. Spot rates reflect real-time supply and demand but introduce volatility. The shippers who manage cost most effectively maintain visibility into both – comparing contracted pricing against live market rates on every load to make informed mode and carrier decisions.