Why is freight shipping so expensive right now?
Honest answers from Gateway Distribution, backhaul logistics in Wisconsin, WI.
Your shipping costs have doubled in the past year. You're not sure if this spike is permanent or temporary. You need to know if you should lock in rates now or wait for prices to drop.
Three main factors drive today's high freight costs. Driver shortages mean fewer trucks on the road competing for loads. Fuel prices directly impact what carriers charge per mile. Equipment availability gets tight when demand spikes, especially during peak seasons like harvest time across Wisconsin's agricultural regions.
Costs vary widely based on your freight type and timing. Full truckloads typically run 20-40% higher than pre-pandemic rates. Less-than-truckload shipments can cost even more due to handling complexity. Rates fluctuate seasonally, with winter heating fuel and holiday shopping driving prices up through January.
Get quotes from multiple carriers this week, including backhaul options. Backhaul logistics means your freight rides on trucks already making the trip, cutting your costs significantly. Gateway Distribution specializes in matching Wisconsin shippers with available truck space on return trips. Consider longer-term contracts if you ship regularly - they provide rate stability during volatile periods.
Once you secure competitive rates, your shipping becomes predictable again. You can budget accurately and focus on your business instead of worrying about surprise freight bills. Smart shippers are already locking in backhaul arrangements for 2024.
Other things people in Wisconsin 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 Wisconsin and the area around it.