What determines freight rates?

"What does this lane cost?" has no single answer, because a freight rate is not the result of one formula but of many factors combined. This article goes through the main ones in turn. We give no numbers; rates change with the time and even the day.

Distance and time

Distance is the best-known factor, but it is not enough alone. The same number of kilometres can mean very different times on a motorway, on a mountain road or on a lane with border queues. For the carrier, the real cost is the time the truck is committed to the job: on the road, at the border, at loading and at unloading.

The chance of a return load

This is one of the most influential and least discussed factors. If the carrier expects to find a return load in the destination area, the rate can be more flexible; if not, the empty return is added to the price. That is why balanced, high-demand corridors price differently from heavily one-directional ones. See our article on empty return trips.

Fuel

Fuel is a large part of operating cost and can move prices quickly. Some contracts handle fuel through a separate mechanism (an index-linked surcharge or discount); it helps to write down how it will work in the order.

Tolls and crossing costs

Road tolls vary by country, and bridges, tunnels, and on some lanes border and transit documents all add cost. It must be clear whether the offer includes them or bills them separately. See road tolls in Europe.

Season and demand

Harvest periods, holidays, start of seasons and pre-holiday rushes raise demand; quiet periods push rates down. Weather and winter conditions also raise time and risk on some lanes. Seeing different rates for the same lane in different weeks is normal.

Vehicle and cargo type

Curtainsider, reefer, mega, standard, part load or cargo needing special equipment all carry different costs. Temperature control, ADR-type requirements, loading method and body type all show up in the price. Describing the cargo correctly is the first step to a correct rate; see our guide on writing a good load listing.

Waiting and loading conditions

A truck waiting long at loading or unloading does not earn during that time, so free time and waiting terms are part of the price. See waiting time charges.

Payment term

A long term creates a financing cost for the carrier. The same freight can be worth different amounts as a cash offer and as a 60-day offer. See freight payment terms.

How to compare prices

When comparing offers, do not look only at the total:

1. Be clear on what the price includes (fuel, tolls, border costs).
2. Compare free time and waiting terms.
3. Take the payment term into account.
4. Check the carrier's reliability and documents; the cheapest offer is not always the cheapest job.

On Order And Load

On the load board, entering a price is optional and offers can be collected. The shipper sees all offers; each carrier sees only its own offer and its position, not a competitor's price. For terms, see the Glossary.