The Relationship Between Freight Rate and Shipping Cost: Key Connections and Market Impacts

The Relationship Between Freight Rate and Shipping Cost: Key Connections and Market Impacts

This article explores the definitions of freight rates and shipping costs and their interrelationship. It indicates that the freight rate represents the price of transportation labor, which directly influences the supply and demand dynamics of the shipping market. In contrast, the shipping cost is the compensation paid by the shipper to the carrier for completing the transportation of goods. The calculation of shipping costs relies on the product of freight rates and transportation volume.

07/21/2025 Logistics Encyclopedia
Read More
Trucking Industry to Maintain Dominance Hit 14M Tons by 2035

Trucking Industry to Maintain Dominance Hit 14M Tons by 2035

The American Trucking Associations (ATA) forecasts that trucking will remain dominant despite recent freight volume declines. Freight volumes are projected to grow by 1.6% in 2025 and reach a peak of 14 million tons by 2035, capturing 76.8% of the freight market share. Revenue is expected to increase to $1.46 trillion. The report emphasizes the critical role of trucking in the supply chain and provides valuable insights for industry leaders and policymakers.

01/08/2026 Logistics Industry Insights
Read More
ATA Forecasts Steady Trucking Industry Growth Through 2035

ATA Forecasts Steady Trucking Industry Growth Through 2035

The American Trucking Associations forecasts that truck freight volume will reach 13.99 billion tons by 2035, accounting for 76.8% of the freight market share, with revenue projected to increase to $1.46 trillion. Trucking remains the dominant force, while other modes of transportation are also actively developing. This forecast provides a valuable reference for industry leaders and policymakers, highlighting the continued importance of trucking in the overall freight landscape and informing strategic decisions.

01/07/2026 Logistics Industry Insights
Read More
Uber Freight Expands 4PL Ambitions in Europe

Uber Freight Expands 4PL Ambitions in Europe

Uber Freight's European operations are experiencing rapid growth, exceeding €200 million in freight volume with a target of €2 billion by 2028. Leveraging its technological advantages, Uber Freight aims to become a leading 4PL provider in Europe, continuously innovating and expanding its services. The company is focused on utilizing its technology platform to optimize logistics and provide managed transportation solutions across the continent, solidifying its position in the European freight market and driving further growth.

01/21/2026 Logistics
Read More
Cass Freight Index Reveals Yearend Logistics Shifts

Cass Freight Index Reveals Yearend Logistics Shifts

October's Cass Freight Index reveals year-over-year growth in freight volume and expenditures, albeit at a decelerating pace, signaling potential challenges for the logistics market toward year-end. The report analyzes key factors impacting the freight market and looks ahead to future trends driven by technology and green transformation. This provides valuable insights for logistics companies and supply chain management professionals, offering a crucial reference point for navigating the evolving landscape.

01/21/2026 Logistics Industry Insights
Read More
US Air Freight Costs Key Calculation Tips and Savings

US Air Freight Costs Key Calculation Tips and Savings

This article provides a detailed analysis of the components of US air freight rates, including weight, volume, destination, and fuel surcharges, along with a clear step-by-step guide to calculating freight costs. It also shares cost-saving tips and precautions, such as optimizing packaging and comparing quotes from different carriers. The aim is to help readers better control logistics costs and avoid unnecessary expenses related to air freight to and within the United States.

01/15/2026 Logistics Encyclopedia
Read More
Shippers Face Ongoing Freight Market Struggles

Shippers Face Ongoing Freight Market Struggles

FTR's Shippers Conditions Index (SCI) indicates that despite a rebound, shippers still face significant challenges as it remains in negative territory. The analysis covers influencing factors such as fuel costs, freight volume, capacity utilization, and freight rates. It suggests strategies for shippers to navigate these challenges, including optimizing supply chains, diversifying transportation modes, strengthening collaborations, and leveraging technological innovations. The aim is to help shippers find opportunities amidst the difficulties in the current freight market.

01/20/2026 Logistics Industry Insights
Read More
Shipping Costs Weight Vs Volume in Global Parcel Delivery

Shipping Costs Weight Vs Volume in Global Parcel Delivery

International small packet billing rules are complex, with the larger of actual weight and volumetric weight used for calculation. Volumetric weight significantly impacts the freight costs of lightweight, bulky goods, while actual weight affects the freight of high-density items. Understanding the billing rules, optimizing packaging, and consulting with logistics professionals can effectively reduce shipping costs. By carefully considering these factors, businesses can minimize expenses associated with international small packet shipments and improve overall cost efficiency.

11/03/2025 Logistics Encyclopedia
Read More
Guide to Cutting Shipping Costs Via Weight Volume Optimization

Guide to Cutting Shipping Costs Via Weight Volume Optimization

Struggling with expensive international shipping fees? This article delves into optimizing the weight and volume of your packages from three perspectives: 'Weight Reduction,' 'Volume Minimization,' and 'Smart Packaging Combination.' We provide practical strategies to significantly reduce your shipping costs and save money effectively. Learn how to minimize weight, efficiently pack items to reduce volume, and combine shipments strategically to lower your overall expenses. Start saving on international shipping today!

11/03/2025 Logistics Encyclopedia
Read More
Cathay Pacific Cargo Volume Rises 63 As Tariffs Extended

Cathay Pacific Cargo Volume Rises 63 As Tariffs Extended

Cathay Pacific reported a 6.3% year-on-year increase in cargo volume for June, primarily driven by tariff extensions and growing demand from Southeast Asia to the Americas. Total tonnage for the first six months increased by 11.3%. Chief Commercial Officer Lavinia Lau stated the airline will continue to monitor market uncertainties. This data sends a positive signal to the air cargo market, suggesting it may be adapting to the new trade landscape.

07/22/2025 Logistics
Read More