Have you ever been driving through a town or city and witnessed a big building being built? The pieces of steel and the huge equipment out there may leaving you wondering how everything came together. Well, the answer is pretty simple: A trucking company delivered all of this. From hauling in the bulldozers and cranes on huge flatbed trucks to bringing in the construction materials as freight, truckers are responsible for delivering these goods, and so much more. Perhaps you need something similar and need some freight hauled, or you could be thinking about starting your own company. Regardless, many people want to know all about successful trucking companies like Steel’s Transportation Group and how they operate.
A trucking company has a lot more going on under the surface than you may realize. There is a lot of upkeep and adherence to safety and centralized systems that are all working together to ensure that the company turns a profit while delivering freight safely and on time. But when one of these companies takes on a job to haul something from point A to point B, how do they calculate those rates? While there is no set in stone measure that’s used universally among the industry, there are some pretty common practices when it comes to setting rates. Here is some more information on the topic.
How Trucking Rates are Calculated
The Shipment Weight
For companies that actually do specifically haul freight, and not just basic goods and packages, they will often calculate these rates based on how much the freight weighs, as in how much tonnage they’re dealing with. Now, depending on the company, they might be charging per the 100 pound/kilo mark, or for really large shipments, they might be charging by the ton. Every individual company is going to be slightly different in how they calculate their final rate total, but going by weight is pretty much the industry standard.
Another measure trucking companies might use to calculate rates is to measure the load’s density or how much space is going to be required to haul the load. A few reasons a company may do this, with perhaps the biggest reason being that they can double-up on their loads when dealing with lower-density freight, allowing them to earn extra money on the same trip. Again, expect individual businesses to have different rates for density levels.
Distance of the Shipment
One might think that the distance the shipment has to travel is the number-one factor considered, but it’s actually down a little bit on the list. Of course, this still matters a great deal, especially considering fuel costs, but it’s typically weight and density that take the most precedence. However, the longer the freight has to be hauled, the more the client can expect to pay. This is just the simple economics of every sort of delivery service, from food and cabs to long-haul truckers. Fuel isn’t free, simply put.
Some companies out there, especially successful ones, are also going to offer you fixed-rate costs on some items. Of course, terms and conditions are going to apply, and you will never have a one size fits all approach, because there are all sorts of freight options that need to be hauled. However, for some items, you will be able to find a fixed rate, and the company will charge you X amount of dollars for the load. Basically, in essence, you’re renting the truck, and this is why you might find a fixed rate. Though you will see that these rates will depend on the company offering them. Some are going to have very strict regulations about what qualifies for this rate, while others will be more lax. This is why it’s always important, above all, to find a trucking company that offers quality services and has a good track record of delivering the goods.
What a company charges will always depend on the specific factors of the load that needs to be hauled, so it’s just impossible to give you an exact dollar amount in an article. It may not be applicable to what you need hauled or the company you choose. Though, speaking of that, it’s always best to go with a quality trucking service for all your freight needs.