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What Effects the Price of Freight Rates

What Effects the Price of Freight Rates Image

Speed of service and lead time

Shippers usually pay more when they need goods moved fast. Express or next day services cost more than standard options, because the haulier must plan routes tightly and may run with part loads. Short lead times also reduce flexibility, so there is less chance to combine loads or secure backloads. Weekend or out of hours collections and deliveries often add surcharges to the rate.

If you can book earlier and accept longer transit times, your freight rate is likely to be lower. Planning ahead gives the carrier time to optimise routes, fill vehicles efficiently, choose cheaper slots and share some of those savings with you. Clear information on timings and access at the start helps avoid costly last minute changes.

Supply and demand in the market

Freight rates are heavily influenced by supply and demand in the market. When there are more loads than available vehicles, hauliers can charge more, because trucks are in short supply. This often happens during peak seasons, such as pre Christmas retail peaks or harvest periods. In quieter months, or in regions with many hauliers competing for work, prices can fall as carriers try to keep their fleets busy. Fuel prices, driver availability and wider economic conditions also shape supply, as higher costs or labour shortages can reduce capacity. 

On the demand side, large contracts from major shippers can use many of the available vehicles on certain routes, pushing up prices for remaining space. Sudden events such as port strikes, road closures or extreme weather can cause short term spikes, because everyone is chasing limited options. Monitoring market trends, and sharing realistic forecasts with your carrier, can help you secure better rates over time.

Long term agreements with agreed volumes often smooth out short term swings, because the haulier can plan their fleet and drivers with more confidence. Flexible loading days, or being open to alternative routes and modes, can also make your freight more attractive when capacity is tight, which can lead to more stable pricing.

In a very busy spot market, last minute bookings are usually charged at a premium. If you can book regular lanes in advance, you are more likely to agree fair, predictable tariffs. Talking openly about your plans helps carriers position trucks where needed most.

Distance, route and lane balance

Distance, route and lane balance all shape the price of freight. Longer journeys cost more, because fuel, wages and wear on the vehicle increase with every mile. However, cost does not rise in a straight line. Difficult routes with ferries, toll roads, city centres or mountain passes may cost more than a simple motorway run of the same distance.

Lane balance also matters. If many loads move in one direction, but few come back, hauliers may have to run empty on the return trip. In that case, outbound rates can be higher to cover the empty running, while lanes with balanced flows often benefit from sharper prices. Sharing flexible delivery windows can help carriers match your load with return work.

Weight, volume and freight density

Weight, volume and freight density all play a key role in setting rates. Hauliers must work within legal weight limits for the vehicle, while also managing how much space is available on the trailer. A light but bulky load may fill the trailer before it reaches the weight limit, so the rate is based on the space used. Heavy, dense loads can hit weight limits early, leaving unused space, which still has a cost for the operator. Many carriers use chargeable weight, which compares the actual weight and a calculated volume weight, and then bills on the higher figure. This helps cover both space and weight fairly. 

Poorly packed or unevenly loaded freight can reduce usable space and slow loading, which may also affect the final price. Clear dimensions, accurate weights and sensible packing help the haulier plan space, avoid surprises and quote a fair, transparent rate. For example, loose boxes with lots of air between them may cost more per kilo than the same goods stacked on pallets, because they waste space and take longer to handle.

Groupage and part load services are sensitive to density, as the carrier is trying to fit freight from several customers into one vehicle. Dense loads are easier to place and secure, so they are more attractive. When you plan shipments, think about using standard pallet sizes, reducing empty space in cartons and keeping cartons a similar shape. These steps can increase density, improve safety and help to keep freight costs under control.

Size, pallets and stackability

The size of your shipment, how it is placed on pallets and whether it can be stacked all affect the freight rate. Standard pallet sizes are easier to plan and load, so they usually give better use of space in the trailer. Odd sizes or awkward shapes can leave gaps that cannot be filled, which raises the cost per unit.

If goods are stable and can be stacked safely, the haulier may be able to load more in a single trip, which spreads fixed costs over more units. Fragile, high value or non stackable items often need more floor space, protective packaging or special handling, which will be reflected in the price you pay. Accurate pallet counts help avoid disputes.


Michael Gall Transport Limited provides flexible freight services tailored to your load, timings and budget. We plan the best routes, balance lanes and choose vehicles to suit your weight, volume and pallets. By improving packing, stackability and lead times, we help reduce empty running, manage market changes and keep your freight rates clear and competitive.