The Complete Guide to Freight Shipping Costs

Freight shipping costs are one of the largest variable expenses in any supply chain. Whether you ship ten pallets a month or a hundred truckloads a week, understanding what drives your rates — and where you have leverage to reduce them — is the difference between a competitive operation and one that bleeds margin on every shipment.

This guide breaks down how freight pricing actually works across every major mode, explains the cost factors carriers and brokers use to calculate rates, and gives you practical strategies to lower your spend without sacrificing service quality.

Full Truckload (FTL) Pricing

Full truckload rates are calculated on a per-mile basis. You are paying for the entire trailer — whether you fill it completely or not. The national average for dry van FTL typically ranges from $1.50 to $3.50 per mile, but this number varies significantly based on lane, season, and market conditions.

Here is what shapes your FTL rate:

• Distance: Longer hauls generally have a lower per-mile rate because fixed costs (loading, unloading, paperwork) are spread across more miles. A 200-mile haul might cost $3.00/mile while a 1,500-mile haul could average $1.80/mile.
• Lane balance: Lanes where freight flows heavily in one direction (headhaul) but carriers struggle to find return loads (backhaul) tend to cost more in the headhaul direction and less in the backhaul direction.
• Fuel surcharge: Virtually every FTL rate includes a fuel surcharge, typically calculated as a percentage of the linehaul rate or a per-mile addition based on the DOE national diesel average.
• Equipment type: Flatbed trailers command a 20-40% premium over dry van due to specialized equipment and securement requirements. Reefer (temperature-controlled) trailers add 15-30% over standard dry van rates to cover refrigeration unit fuel and maintenance.
• Market conditions: The spot market fluctuates based on capacity supply and freight demand. When trucks are scarce (typically Q4 and produce season), rates spike. When capacity is loose, shippers have more negotiating power.

Less-Than-Truckload (LTL) Pricing

LTL pricing is fundamentally different from FTL. Instead of paying per mile for the whole trailer, you share trailer space with other shippers and pay based on the weight, dimensions, and freight class of your shipment.

LTL rates are typically quoted per hundredweight (CWT) and are heavily influenced by:

• Freight class (NMFC 50-500): The National Motor Freight Classification system assigns a class to every commodity based on density, stowability, handling requirements, and liability. Lower classes (50-85) are denser, easier to handle, and cheaper to ship. Higher classes (150-500) are lighter, bulkier, or more fragile — and significantly more expensive per pound.
• Weight: Heavier shipments generally get a lower per-CWT rate because carriers earn more revenue from each pallet position. LTL shipments typically range from 150 to 15,000 pounds.
• Density: Carriers increasingly use dimensional weight pricing. If your freight is light but takes up a lot of trailer space, you may be charged based on cubic dimensions rather than actual weight.
• Origin and destination: Shipments to and from major metro areas with heavy LTL terminal networks are cheaper than shipments to rural areas that require extra handling and linehaul transfers.

Flatbed and Specialized Freight Rates

Flatbed freight commands premium rates for good reason. Carriers must invest in tarps, chains, straps, and edge protectors. Load securement takes longer than backing into a dock. And drivers with flatbed experience are in shorter supply than dry van drivers.

Expect flatbed rates to run 20-40% higher than comparable dry van lanes. Step deck and RGN (removable gooseneck) trailers add even more because of their specialized nature and limited fleet availability.

For oversized or overweight loads requiring permits, pilot cars, and route surveys, costs can double or triple the standard per-mile rate. These loads require advance planning — often two to four weeks of lead time for permit acquisition and route approval.

Reefer and Temperature-Controlled Rates

Refrigerated trailers add 15-30% over dry van rates. This premium covers the refrigeration unit itself (which burns additional diesel or runs on electric standby), pre-cooling the trailer before loading, continuous temperature monitoring, and the carrier's investment in specialized equipment.

Reefer rates are particularly volatile during produce season (April through August), when demand for temperature-controlled trailers surges and available capacity drops sharply.

Accessorial Charges Explained

Accessorials are the charges beyond basic pickup and delivery. They catch many shippers off guard because they are not always included in the initial quote. Understanding these charges upfront prevents invoice surprises:

• Detention ($50-100/hour): When a carrier's driver is held at a shipper or receiver facility beyond the free time (usually 1-2 hours), detention charges begin accruing. This is one of the most common accessorials and one of the most contentious.
• Lumper fees ($200-400): A lumper is a third-party unloading service, typically required at large retail distribution centers. The receiver dictates whether a lumper is required, and the shipper usually pays.
• Liftgate ($75-150): If the delivery location does not have a loading dock, the carrier needs a liftgate-equipped truck to lower freight to ground level.
• Inside delivery ($100-300): Moving freight beyond the dock or tailgate into the building. Common for retail stores, offices, and residential deliveries.
• Residential delivery ($75-200): Deliveries to residential addresses cost more because they typically require liftgate service, limited access maneuvering, and driver-assist unloading.
• Redelivery ($200-400): If a delivery attempt fails because the receiver is closed, refuses the freight, or cannot accommodate the truck, the carrier charges for a second attempt.
• TONU / truck order not used ($200-500): If you book a truck and then cancel after the carrier has dispatched, you will owe a TONU fee to compensate the carrier for the deadhead miles and lost opportunity.

Contract vs. Spot Market Pricing

Shippers with consistent volume have two primary pricing strategies:

Contract rates are negotiated annually (sometimes quarterly) and provide rate stability. You agree to tender a certain volume to a carrier, and they agree to a fixed per-mile or per-shipment rate for the contract period. Contract rates are typically 10-20% lower than spot rates during tight markets, but 5-15% higher than spot during loose markets.

Spot market rates are negotiated load-by-load based on current supply and demand. They offer flexibility — you are not locked into volume commitments — but they expose you to market volatility. Most shippers use a blended approach: contract rates for their consistent, high-volume lanes and spot market for overflow, seasonal surges, and irregular shipments.

Seasonal Pricing Patterns

Freight rates follow predictable seasonal cycles. Understanding these patterns helps you plan shipments strategically and set budgets more accurately:

• January-February: Typically the softest rate environment of the year. Post-holiday freight volumes drop, and carrier capacity is readily available. This is the best window for negotiating annual contracts.
• March-April: Rates begin climbing as produce season starts in the Southeast and Southwest. Reefer demand increases, pulling capacity from dry van markets.
• May-July: Peak produce season. Reefer rates hit their annual high, and the ripple effect tightens dry van and flatbed capacity too. Plan ahead for this period.
• August-September: A brief softening as produce season winds down and back-to-school freight stabilizes. A secondary window for contract negotiations.
• October-December: Holiday retail shipping creates the second peak of the year. Rates climb steadily through November, often peaking in the first two weeks of December before dropping sharply after Christmas.

Strategies to Reduce Freight Costs

You cannot control diesel prices or market cycles, but you can control how efficiently you ship. These strategies consistently lower freight spend:

• Consolidate shipments: Combining multiple smaller shipments into fewer, larger loads reduces your per-unit freight cost. If you regularly ship LTL, calculate whether consolidating into FTL makes sense on your highest-volume lanes.
• Be flexible on pickup windows: Carriers can offer lower rates when they have flexibility to pick up within a 2-3 day window rather than a specific date. This lets them optimize their routing and reduce deadhead miles.
• Reduce detention: Fast loading and unloading saves you detention charges and makes your facility more attractive to carriers — which translates to better rate offers over time.
• Optimize packaging: Denser freight costs less per pound to ship. Evaluate whether your packaging can be made more compact without compromising product protection.
• Ship during off-peak periods: If your supply chain allows it, scheduling major shipments during January-February or August-September takes advantage of the softest rate periods.
• Work with a freight partner: A freight dispatch service can access carrier networks and rate intelligence that individual shippers cannot. The savings from better rates and reduced claims often exceed the service fee.

When to Use a Freight Dispatch Partner

If you are spending more than $10,000 per month on freight, working with a professional dispatch service typically pays for itself through better rates, reduced claims, and time savings. If you are on the carrier side and want to understand the economics from a dispatcher-to-owner-operator relationship, how truck dispatch fees work lays out the percentage-vs-flat-rate tradeoffs carriers use to decide. We help shippers find vetted carriers for every load type — request a quote to see how your current rates compare.

Frequently Asked Questions