Understanding your freight shipping cost isn’t just about budgeting—it’s about running your business smarter. Whether you’re moving goods across state lines or delivering within the bustling New York/New Jersey metro area, knowing what goes into your shipping invoice helps avoid surprises and optimize logistics.
At On Track Freight Systems, we believe transparency is key. Here’s what you need to know.
What Makes Up Your Freight Shipping Cost?
Base Freight Rate
The base rate forms the foundation of your freight shipping cost. It’s calculated using several variables:
- Weight: Heavier shipments cost more, though the cost per pound often decreases as weight increases.
- Distance: Longer hauls typically raise the cost.
- Dimensions: Larger shipments take up more trailer space, increasing charges.
- Freight Class: Determined by the National Motor Freight Classification (NMFC), items are assigned a class based on density, stowability, handling, and liability. The higher the class, the higher the cost.
Fuel Surcharges
Fuel costs are dynamic, and carriers adjust accordingly. Fuel surcharges are generally updated weekly or monthly and are applied as a percentage of the base rate. They help carriers offset rising diesel prices without constantly revising base pricing.
Accessorial Charges (Extra Services)
Accessorial fees account for services outside standard dock-to-dock delivery. These charges can significantly impact your freight shipping cost if not anticipated. Common examples include:
- Liftgate service for locations without a loading dock.
- Inside delivery when the driver is required to move freight beyond the threshold.
- Limited access delivery to places like schools, military bases, or construction sites.
- Re-delivery fees if no one is available to receive the shipment.
- Sort and segregate fees when shipments need to be divided at delivery.
Delivery Area Surcharges
Deliveries to remote, congested, or metropolitan areas often carry extra charges. In cities like New York, traffic congestion, narrow streets, and parking limitations can drive up delivery costs. Some ZIP codes may be subject to fixed surcharges due to consistent delivery difficulties.
Freight Class and Density Considerations
Freight class plays a critical role in determining cost. The NMFC assigns each type of freight a class between 50 and 500, with higher numbers equating to higher shipping costs. Here’s what affects freight class:
- Density: Lower density = higher class = higher cost.
- Handling: Fragile or odd-shaped items that require special care can be costlier.
- Stowability: Irregular shapes or hazardous materials may raise costs.
- Liability: High-value or easily damaged items are more expensive to insure.
Lower Your Freight Class (and Cost)
- Use compact, uniform packaging to increase density.
- Ensure accurate descriptions to avoid costly reclassification.
Weight and Dimensional Pricing
Your shipping cost increases with weight, but many carriers offer tiered pricing where heavier shipments enjoy lower per-pound rates. However, if your freight is large but light, you may be charged based on dimensional weight rather than actual weight. This is especially common when:
- Freight is over 96 inches in length.
- Items are bulky but not heavy enough to justify the space they occupy.
Freight Insurance
While basic liability coverage is included with most shipments, it’s limited and often based on freight class. Optional cargo insurance offers broader protection, especially for high-value goods. It’s worth considering if you’re shipping electronics, pharmaceuticals, or fragile items.
Documentation and Administrative Fees
Accurate paperwork is crucial. Errors on the Bill of Lading (BOL) can trigger reclassification, delays, or correction fees. You may also incur charges for:
- Manually created BOLs
- Address corrections
- Administrative processing or freight bill auditing
Factors That Can Influence Your Final Freight Bill
Seasonal Demand and Market Conditions
Rates can fluctuate during high-demand periods like Q4 or back-to-school season. Weather events, fuel shortages, or labor strikes may also increase rates with little warning.
Carrier Selection
Your choice of carrier directly affects freight shipping cost. National carriers may charge more for local deliveries or lack the flexibility to handle special requests. That’s where regional providers like On Track Freight Systems shine—with:
- Deep local knowledge
- Faster delivery windows
- Personalized customer service
Freight Consolidation Opportunities
If you ship frequently, consolidation can save money. Carriers that offer pool distribution or multi-stop routing allow multiple shipments to be grouped together, reducing the number of trips and optimizing trailer space.
How to Reduce Freight Shipping Costs
- Be accurate: Provide correct dimensions, weight, and freight class.
- Consolidate shipments when possible.
- Avoid limited access and residential deliveries unless absolutely necessary.
- Partner with a regional expert who understands your market and routes.
Why On Track Freight Systems is the Smart Choice
With over three decades of experience, On Track Freight Systems is your trusted partner for LTL freight across the Northeast. We know the challenges of the NY/NJ metro area—and we’re built to overcome them. Our transparent pricing, real-time tracking, and experienced drivers ensure your shipment gets where it needs to go—on time and on budget.
We make your freight shipping cost more predictable, more manageable, and more efficient.
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Let’s make freight easier. Request your custom rate quote today.
