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Rate the Freight

[box type=”shadow”]Shipping companies charge different rates for freight, based on the types of items and any special handling that may be necessary. The transportation distance also may factor into the freight charges. For the most accurate estimate, use the shipping company’s freight cost calculator. Many companies offer these tools on their websites.[/box] [box type=”shadow”]1.) Calculate the annual costs that it takes to operate your trucking company. Add up all expenses, such as fuel, maintenance of your fleet (trucks), wages paid to employees, rent of your facility space and fees paid to brokerage companies. Divide the total amount by the number of miles driven in a year. The answer is your per-mile operating cost. 2.) Forecast your sales for the next year and set a goal for profit. Refer to updated fuel cost lists by region and other valuable tools to estimate your sales for the future. Use the desired per-mile profit to base the rates for freight. 3.) Determine rates for freight. If you company offers full truckload service, set the rate at an amount that guarantees profit by covering your per-mile costs. For less than truckload rates, set rates based on the class set forth by the National Motor Freight Classification (NMFC). 4.) Use established rates when receiving orders from customers. Obtain the weight, dimensions, value and density of all freight before quoting a customer with a freight rate. Negotiate the price with the customer as necessary.[/box]