Freight shipping is the essential factor for the transportation of goods so that they reach the destination on time, in conditions that adhere to the best safety standards. The shipment involved in freight shipping is usually larger in size as compared to other shipments for smaller products. Shipment of goods can be done by various means; the popular one’s today are by trucks, trains, ships or planes. The rates of shipment will vary as per various factors that are listed below.

Weight of the shipment

The weight of the goods that need to be shipped always play a significant role in determining the cost of shipment. In freight shipping, one has what is called as ‘pre-defined freight groups’ based on weight. These groups have a definite price bracket with set prices for weight in that particular group. The weight of the shipment gets matched with the corresponding shipping rates of that particular group and that is how the price of shipment is determined. 

Density of the shipment

Goods to be shipped are placed on a structural foundation of a unit load known as a pallet; this unit allows handling and storage of goods in an efficient manner. The dimension of these pallets along with the total height of the pallet, the carton and the weight of the pallet is used to calculate the density of the shipment. Based on this density one can determine under which freight class the product falls under and this is a decisive factor for the rate of shipment.

Distance between source and destination

In most scenarios, the distance from source of shipment to the destination will be a factor for measuring the cost of shipment. However, ask companies that offer Top logistics solutions in India and they will tell you that it is not as simple as it sounds. The best freight forwarding companies in India will have to contact other shipping carriers to cover geographical locations since freight shipment involves transportation across the length and breadth of geographical routes. This involves varied rates of shipment and is a factor that needs to be considered for costs.

Freight Classification

Based on weight and density of shipment, the two types of freight classifications are low freight class and high freight class. Goods that are higher in weight and density are given low freight classification due to fewer chances of damage in transit; the freight rates for these are less. On the other hand, goods that come under high freight class have higher rates due to the possibility of damage in transit.  

Shipping Mode

The mode through which goods are transmitted affect cost. The urgency of delivery of goods is directly related to the increase in the cost of shipment. Fast modes of transit like Expedited Freight Shipping ensure quick delivery of shipments at higher prices.

Fuel Cost

The ever-changing prices of oil and fuel are a major factor in deciding the prices of shipment. Freight forwarding companies in India add a fuel cost component among the shipping charges which is their only means of minimizing losses due to increase in fuel rates. This is passed on to the consumer in terms of higher charges when fuel rates are high. 

Tariff rates and Negotiated rates

Shipping carriers and Shipbrokers in India offer 20-25 % discount as negotiated rates to companies that have multiple shipments in multiple locations. This is directly related to the reputation of the shipping companies that you are dealing with. It is essential to get your goods transported through shipping companies that have been in the industry for a long time.

Also Read: Types Of Cargo and Freight Transportation That are Good For Your Business