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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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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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
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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
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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
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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
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Cost Analysis of Shenzhenindia Air Freight Routes

Cost Analysis of Shenzhenindia Air Freight Routes

This article comprehensively analyzes the pricing standards for the Shenzhen air freight logistics India dedicated line. It covers the calculation methods for weight/volume, basic freight, fuel surcharges, customs duties, and other components, as well as the various factors that influence the price. This guide helps you clearly understand the costs involved and make informed choices when selecting air freight solutions. It provides insights into optimizing your logistics budget for shipments to India from Shenzhen.

02/02/2026 Logistics
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US Trucking Industry Rebounds Strongly Despite Economic Uncertainty

US Trucking Industry Rebounds Strongly Despite Economic Uncertainty

The American Trucking Associations (ATA) report indicates a rebound in the U.S. Freight Tonnage Index for June, although it remains down year-over-year. Economic reopening is driving freight volume recovery, but the risk of a second wave of the pandemic persists. Freight companies need to closely monitor the pandemic's development, optimize operations, diversify businesses, strengthen risk management, embrace digital transformation, focus on sustainability, and prioritize talent development to navigate market changes and seize opportunities.

02/04/2026 Logistics
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US Trucking Industry Navigates Challenges Amid Economic Role

US Trucking Industry Navigates Challenges Amid Economic Role

The '2013 U.S. Freight Trends' report highlights trucking's crucial role in the U.S. economy, accounting for the majority of freight volume and revenue. The report also identifies industry challenges, including regulatory changes, driver shortages, and aging infrastructure. Leveraging data analytics to optimize operations will be key for trucking companies to address these challenges and capitalize on opportunities. Data-driven decision-making will be essential for improving efficiency and profitability in a dynamic freight landscape.

02/04/2026 Logistics Industry Insights
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