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
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Atlantic Gate Debuts As Global Logistics Brand

Atlantic Gate Debuts As Global Logistics Brand

Atlantic Forwarding Group has announced the merger of Atlantic Forwarding and Atlantic Gate into a unified brand, Atlantic Gate, reflecting its commitment to high-quality logistics services. The transition is expected to occur gradually to ensure a consistent customer experience while offering a diverse range of international shipping solutions.

08/08/2025 Logistics
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US Trucking Industry to Haul 14M Tons by 2035 ATA Forecast

US Trucking Industry to Haul 14M Tons by 2035 ATA Forecast

The American Trucking Associations (ATA) forecasts that trucking will continue to dominate the freight market in the US, projecting freight tonnage to approach 14 million tons by 2035. The report indicates trucking's dominance in both tonnage and revenue, predicting a stable market share over the next decade. While trucking retains its lead, other transportation modes, such as rail and air freight, are also expected to experience varying degrees of growth. The forecast highlights the continued importance of trucking to the overall freight landscape.

01/08/2026 Logistics Industry Insights
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New Cowenafs Index Aims to Predict Freight Rate Trends

New Cowenafs Index Aims to Predict Freight Rate Trends

The Cowen/AFS Freight Index is released, providing institutional clients with pricing forecasts for LTL, TL, and parcel shipments to aid market decision-making. This index offers valuable insights into current and future freight rates, enabling businesses to optimize their logistics strategies and improve profitability. By leveraging the data and analysis provided, companies can make informed choices regarding carrier selection, contract negotiations, and overall transportation planning. The Cowen/AFS Freight Index is a crucial tool for navigating the complexities of the freight market.

01/21/2026 Logistics Industry Insights
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Freight Forwarders Guide to Decoding Global Shipping Costs

Freight Forwarders Guide to Decoding Global Shipping Costs

International sea freight costs consist of basic freight, surcharges, and other fees. Basic freight is calculated based on cargo size and distance. Surcharges, including port, fuel, currency adjustment, and peak season surcharges, fluctuate with the market. Other fees cover insurance, customs clearance, and quarantine. Savvy freight forwarders need to understand the cost structure to choose the appropriate solution and control logistics costs effectively.

01/16/2026 Logistics Encyclopedia
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Q1 2025 Freight Index Shows Diverging Multimodal Pricing Trends

Q1 2025 Freight Index Shows Diverging Multimodal Pricing Trends

The TD Cowen-AFS Freight Index reveals a mixed bag for different transportation modes despite overall weak freight demand. Truckload spot rates are slightly up, but contract rates remain under pressure. Parcel carriers are adapting to market competition through flexible pricing strategies. LTL pricing remains stable, but there are signs of weakening pricing discipline. The index provides valuable market insights and decision-making support for freight companies.

12/31/2025 Logistics Industry Insights
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Trucking Spot Rates Rise As Capacity Tightens

Trucking Spot Rates Rise As Capacity Tightens

TransCore data indicates a continued strong truckload freight volume in the spot market for August, defying seasonal trends. Rates remain stable, but different freight types show varying patterns. Freight brokers play a prominent role, with small carriers increasingly reliant on them. Larger carriers prefer sourcing freight independently. Capacity is crucial; companies need to focus on cost control, optimize capacity allocation, enhance technology adoption, and establish long-term partnerships to navigate the current market dynamics. This requires careful planning and strategic execution to maintain competitiveness.

01/18/2026 Logistics Industry Insights
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Cass Freight Index Shows October Demand Slump Amid Labor Strikes

Cass Freight Index Shows October Demand Slump Amid Labor Strikes

The Cass Freight Index reveals declines in both freight volume and expenditures in October, year-over-year and month-over-month, primarily due to weak demand and the UAW strike. Analysts suggest that private fleets' internal sourcing may lead to overall freight volume outperforming road transport. Looking ahead, economic conditions, geopolitical risks, and technological changes will continue to impact the freight market, requiring proactive responses from businesses.

01/21/2026 Logistics Industry Insights
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US Freight Forwarders Adapt to Carrier Alliance Shifts

US Freight Forwarders Adapt to Carrier Alliance Shifts

This article delves into the freight forwarder ratio strategies of US line carriers. Through data analysis, it reveals how major carriers like CMA, MSC, and MSK respond in different market environments. The article emphasizes that carriers should maintain a balance between freight forwarder and direct customer cargo volume, fine-tuning it according to market changes to achieve stable revenue growth. For freight forwarders, understanding carrier strategies and choosing appropriate partners is crucial for success in the US market.

12/30/2025 Logistics Industry Insights
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Truckload Spot Market Struggles Amid Economic Pressures

Truckload Spot Market Struggles Amid Economic Pressures

DAT analysts interpret truckload spot market data, pointing to rate corrections, increased shipper leverage, and challenges for small carriers. The flatbed market remains strong, while refrigerated freight faces pressure, and dry van rates still have room to decline. The analysis highlights a shift in market dynamics. The report suggests monitoring the potential market rebound and capacity growth in the near future, as these factors will significantly influence freight rates and carrier profitability. This analysis provides valuable insights for stakeholders navigating the evolving freight landscape.

01/19/2026 Logistics Industry Insights
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