Why is freight shipping so expensive right now?
Real answers about rising costs from Gateway Distribution, backhaul logistics in New Mexico, NM.
Your shipping costs doubled in the past year and you're wondering if this is the new normal. Freight rates across New Mexico and nationwide have spiked due to fuel prices, driver shortages, and equipment availability. You need to know whether to lock in current rates or wait for costs to drop.
Three main factors drive today's high freight costs. Fuel prices remain elevated, adding 15-20% to shipping rates compared to two years ago. The trucking industry faces a severe driver shortage, with companies paying premium wages to retain drivers. Equipment availability is tight, meaning fewer trucks compete for your freight, pushing prices higher.
Shipping costs vary widely based on route, timing, and cargo type. Full truckload rates from New Mexico to major markets can range from $2-4 per mile, depending on demand and return freight availability. LTL shipments face additional fuel surcharges and capacity constraints. Peak seasons like holiday shipping drive rates even higher.
Get quotes from multiple carriers and compare options like backhaul logistics to reduce costs. Backhaul shipping uses trucks already making return trips, eliminating empty miles and cutting your rates significantly. Gateway Distribution specializes in finding these cost-effective backhaul opportunities for New Mexico businesses. Consider longer-term contracts if you ship regularly to lock in better rates during volatile periods.
With the right carrier partnerships and shipping strategy, you can reduce freight costs by 20-30% compared to spot market rates. Your shipping budget becomes predictable again, and you avoid the stress of constantly fluctuating transportation costs.
Other things people in New Mexico 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 New Mexico and the area around it.