How to Calculate Freight Rate?: Explained in Detail
Posted: Thu Feb 13, 2025 10:44 am
In 2021, there was a sudden surge in global container shipping freight rates as the COVID-19 pandemic upturned well-running supply chains. Freight rates have later dropped significantly as global economies slowly recovered from the impact of the lockdown. Spot container freight costs for Asia-bound cargo have been fluctuating between USD 1,000 and USD 1,500 per 40hc levels after May 2023. The dynamic rate fluctuation is due to several factors like the shipping season, the mode of transportation, market conditions, and many more. In this quick guide on how to calculate freight rates, we also explore how these factors impact the pricing mechanism.
Freight Rate
Five Essential Factors That Determine Freight Charges
For most businesses, freight rates are an important input to calculate the unit cost bahrain phone numbers list price of the products/units they sell. To help you understand the dynamics of freight rates better, let us consider the essential factors that influence the pricing mechanism:
1. Freight dimensions
The primary factor deciding freight rates is the volume of the cargo to be moved. Hence, the accurate notation of the dimensions of the freight, the weight, and the type of commodity becomes critically important. A carrier needs exact dimensions to calculate the space that your freight may occupy on a truck. They also need the correct weight, as there are limits to the quantity/ weight they can carry per container.
Freight Rate
Five Essential Factors That Determine Freight Charges
For most businesses, freight rates are an important input to calculate the unit cost bahrain phone numbers list price of the products/units they sell. To help you understand the dynamics of freight rates better, let us consider the essential factors that influence the pricing mechanism:
1. Freight dimensions
The primary factor deciding freight rates is the volume of the cargo to be moved. Hence, the accurate notation of the dimensions of the freight, the weight, and the type of commodity becomes critically important. A carrier needs exact dimensions to calculate the space that your freight may occupy on a truck. They also need the correct weight, as there are limits to the quantity/ weight they can carry per container.