Why Truck Freight Rates Aren't Just About Distance: Understanding the Real Cost Drivers

Blog

22-Apr-2025

When people first start shipping goods, they often assume truck freight rates are based solely on mileage — the further the distance, the higher the cost. While distance is certainly a factor, it’s just the tip of the iceberg. Freight pricing is shaped by a mix of operational, market, and even behavioral elements.


Let’s dig into the lesser-known factors that impact truck freight rates — some of which might surprise you.


1. Equipment Type and Availability

Not all trucks are created equal. Whether your freight needs a dry van, a reefer, a flatbed, or a specialized vehicle (like for oversized cargo), that affects pricing. If there’s low availability of the type of truck you need in a particular region, rates will spike.


Tip: Be flexible if possible — alternative equipment can reduce wait time and lower your quote.


2. Load-to-Truck Ratio

This is a major market driver. The load-to-truck ratio measures how many available shipments exist versus how many trucks are in an area. A high ratio (more freight, fewer trucks) increases competition among shippers, pushing up prices.


For instance, during harvest season or e-commerce rush periods, this ratio shifts quickly — even in areas that are normally balanced.


3. Accessorial Charges Add Up

Freight rates often appear lower at first glance, but then accessorial charges (extra services) come in: liftgate service, inside delivery, waiting time, fuel surcharges, etc. These fees are often negotiable or avoidable with better planning.


Advice: Always ask for a breakdown of charges, and look for opportunities to streamline your shipping process.


4. Route Efficiency and Backhaul

Some routes are less desirable than others. If a truck is headed to a remote area with low chances of getting a return load, the shipper may need to pay more to compensate for the imbalance.


Strategy: Try to book freight on lanes with healthy inbound/outbound traffic to benefit from more stable rates.


5. Time Sensitivity and Flexibility

Urgency costs money. If your shipment must arrive within a specific window, or requires express delivery, you’ll often pay a premium. On the other hand, flexible scheduling can give carriers more room to optimize their routes — which they’ll often reward with better rates.


Conclusion

Understanding truck freight rates goes beyond simply calculating mileage. It’s about knowing how markets move, what equipment is in demand, and how your shipment fits into the broader logistics ecosystem.


By thinking holistically — not just about “point A to point B” — you can make smarter, more cost-effective shipping decisions.

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