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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In-depth Analysis of Non-vessel Operating Common Carriers (NVOCC) and Their Roles

In-depth Analysis of Non-vessel Operating Common Carriers (NVOCC) and Their Roles

Non-Vessel Operating Common Carriers (NVOCC) play a crucial role in international freight by signing transport contracts with shippers, despite not owning transportation means directly. They collaborate with actual carriers to ensure smooth cargo transportation. To become an NVOCC, one must meet certain conditions and obtain relevant operating qualifications, but this does not necessarily mean their services are superior to other freight forwarders. The key is to correctly select a cost-effective freight forwarder.

07/21/2025 Logistics Encyclopedia
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Realtime Pricing Transforms Global Air Cargo Sector

Realtime Pricing Transforms Global Air Cargo Sector

The air freight industry is undergoing a transformation driven by real-time pricing. Airlines are expected to optimize cargo consolidation through technology, improving yields and reducing costs. Traditional freight forwarders face transformation pressure, while tech-driven new forwarders will see development opportunities. Ultimately, shippers will benefit from more transparent and efficient air freight services. This shift promises a more dynamic and responsive market, empowering businesses with greater control and visibility over their air cargo operations.

12/30/2025 Logistics Industry Insights
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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
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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
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Shenzhen Port: A Vital Hub Connecting China And The World

Shenzhen Port: A Vital Hub Connecting China And The World

Shenzhen Port, located in Guangdong Province, is a crucial container port in southern China, with a steady increase in cargo and container throughput in recent years. Equipped with a modern navigation management system, it ensures safe and efficient vessel operations. Its developed transportation network fosters the integration of regional economy and international trade.

07/18/2025 Port Encyclopedia
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Mexicos Benito Jurez Airport Key Travel Hub Guide

Mexicos Benito Jurez Airport Key Travel Hub Guide

This article systematically outlines the geographical location, route network, freight capacity, and surrounding services of Benito Juárez International Airport in Mexico City. It provides comprehensive information support for travelers and freight agents, assisting them in efficiently planning travel and the circulation of goods.

08/05/2025 Logistics
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DHL Singapore Airlines Boost Inflight Logistics

DHL Singapore Airlines Boost Inflight Logistics

DHL Global Forwarding has been selected as the preferred global logistics partner for Singapore Airlines' in-flight amenities. DHL will manage the distribution of these amenities across SIA's global flight network, encompassing sea, air, and inland transportation. This partnership aims to help SIA reduce costs and improve efficiency, further solidifying DHL's position in the international air logistics sector. The collaboration highlights DHL's expertise in providing comprehensive and tailored logistics solutions to the aviation industry, ensuring timely and reliable delivery of essential in-flight supplies.

09/26/2025 Logistics
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