Why is freight shipping so expensive right now?
Real answers about rising costs from Gateway Distribution, backhaul logistics in Michigan, MI.
Your shipping costs doubled in the past year. You're not sure if this is permanent or temporary. Michigan businesses along I-94 and I-75 are seeing the same spike in freight rates and wondering if they should lock in contracts or wait it out.
Three main factors drive today's high freight costs: fuel prices, driver shortages, and equipment availability. Diesel fuel directly impacts every mile your freight travels. The trucking industry is short roughly 80,000 drivers nationwide, which means carriers can charge more for available capacity. Empty trailers sitting in yards cost money, so carriers price routes to cover equipment that might return empty.
Freight rates fluctuate seasonally and with demand. Peak shipping seasons like back-to-school and holiday retail drive prices up 15-30%. A full truckload from Detroit to Chicago might cost $1,200 during slow periods but jump to $1,800 during peak times. Distance, freight type, and urgency all affect your final rate.
Get quotes from multiple carriers and compare timing options. Consider longer-term contracts for rate stability during volatile periods. Gateway Distribution specializes in backhaul logistics, where your freight rides home on trucks already making the trip. This eliminates empty trailer costs and can cut your shipping expenses significantly.
Once you find the right carrier mix, you'll have predictable shipping costs and backup options when capacity gets tight. Your supply chain runs smoother and your budget stays on track.
Other things people in Michigan ask
freight shipping transit times
LTL typically takes 2-5 business days depending on distance. Full truckload is usually 1-3 days. Expedited can be next day. Weather, holidays, and freight class affect timing. Get a transit time estimate in writing before you book.
backhaul vs dedicated trucking
Backhaul works when you have flexibility on pickup times and want the lowest cost. Dedicated trucks cost more but give you guaranteed capacity and schedules. If your shipments are time-sensitive or high-volume, dedicated is worth the extra cost.
own truck vs freight company
Own trucks make sense if you ship the same route 3+ times per week consistently. Factor in driver wages, insurance, maintenance, and downtime. Most businesses save money with freight companies until they hit 50+ shipments per month.
Ready to talk?
Gateway Distribution handles backhaul logistics in Michigan and the area around it.