How are shipping rates affected state by state

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How are Shipping Rates Affected State by State?

Shipping rates are determined by a variety of different factors. The weight, density, and dimensions of a shipment, its NMFC classification, the distance between origin and destination locations, the absolute minimum charge of your carrier, and any necessary accessorial charges will all affect the final cost to ship your cargo. In addition to all of these considerations, your shipping rate can also be affected by the local geography, season, and conditions in the state or states from which and to which you are shipping.

Different states have different regulations, economic conditions, infrastructures, and climates that can all play a part in influencing shipping rates for cargo moving into or out of a state’s respective region. This guide will give you an overview of what factors at play in local state shipping markets can influence the cost of shipping.

Seasonal Industries 

States that rely heavily on agriculture, lumber, or other seasonal industries as a driving economic force may affect shipping rates during peak season. In states like New Mexico, Florida, and Mississippi, produce season can tighten capacities as agricultural shippers dominate the trailer and freight space heading out of those regions, increasing the cost of shipping. Lumber states like North Carolina and Oregon may see higher rates in the fall as the season peaks, and a surge of lumber is moved out of those areas. Shippers can find an advantage to shipping during off-peak seasons in these states to avoid paying inflated rates.

 

High Volumes

The shipping infrastructure of certain states will increase the volume of goods transported through those areas. States with large cities, ports, and robust highway and rail networks see higher cargo volumes being brought in through gateway hubs and large distribution centers or transferred as intermodal freight between transportation modes. States like Chicago, New York, and California all have large ports, dense webs of rail lines, and substantial highways able to move freight easily from entry points into the rest of the country, which means more cargo moving through their transportation networks. Delaware, Kansas, and Oklahoma also see high freight volumes due to their geographical positions and strong freight infrastructures.

 

Remote Locations 

Remote locations that require longer transit times and more fuel to reach will also affect the cost to ship. Alaska and Hawaii are the two most remote states and typically require air freight or ocean shipping to reach them, increasing shipping rates for shippers looking to move freight to those areas. Shipping cross-country will also increase rates because of the large amount of distance that must be covered.

 

Rural Locations

States with a lot of rural areas may increase shipping rates due to the remote nature of pickup and delivery locations. Rural locations tend to be far from transit hubs and distribution centers, adding to the cost of fuel for truckers servicing these areas. Rural settings can also incur more accessorial fees for limited access locations, liftgates, or other special delivery requirements necessary to pick up or deliver at rural sites such as farms, ranches, or rural residential locations.

 

High Fuel Prices

The price of fuel can drive up shipping rates as well. States where the fuel price is high, like California, Hawaii, Nevada, and Oregon, will see those costs passed down to customers. Additionally, states with higher taxes and fees for transporting goods will also increase shipping rates for cargo moving through those regions. 

When getting freight quotes for your shipment, it is important to remember that many different factors will affect the overall cost to ship your goods. To ensure you get the best price, contact the LTL shipping experts at Koho to help you secure the best rate available for your shipment.

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