The price at which a freight or cargo is delivered from a point to another is known as the freight rate. The factors controlling the price include the type of the cargo, mode of its transport and the distance at which it is to be delivered. The usual modes of transport are the air, sea and road routes. Often the dimensional weight is taken into consideration to calculate the price. Dimensional weight takes into account the volume as well as the weight of the cargo. Mostly the companies shipping through the air route use this method of calculation.

It helps to know about the relevant company quote for trucking or delivering by truck, air delivery, shipping through the ocean route as well as the discount offered by these companies.

Factors for determining cost
Apart from the basic transport costs, a great deal of other factors influences the price of shipping. The type of good to be shipped is an important factor. Price for shipping sophisticated or delicate goods is generally higher than that required for shipping goods that are non-breakable or non-perishable. Coal, for example, can be carried in bulk, that too on open wagons. The freight rate for them is therefore naturally low. Shipping of raw materials, for the same reason, cost less.

How far the goods are being carried is also important in determining the cost. Often freight rates are planned in such a manner that more the distance increases, more the shipping price drops.

Freight rates can also drop if there is any alternative mode of transport. The presence of New York State Barge Canal, for example, is a factor that brings down the rail freight rates on the Chicago-New York route in comparison to the Chicago-Philadelphia route, despite the fact that the latter journey is shorter than the former.