Factors Influencing Your 3PL Freight Quote: What To Consider

by | Nov 22, 2023 | Logistics, Tips & Tricks

Understanding the factors that influence your 3PL (third-party logistics) freight quote is paramount in logistics. Whether you’re a seasoned supply chain professional or just starting to explore logistics solutions, knowing how to navigate the ins and outs of freight quotes can save your business time and money. 

This comprehensive guide will delve into the key elements that shape your 3PL freight quote and provide valuable insights on optimizing it for maximum efficiency. This guide is brought to you by ATS Logistics, a leading Cincinnati-based logistics company committed to delivering top-notch logistics services.

 

What Is a 3PL Quote?

 

Before we dive into the factors that impact your 3PL freight quote, let’s establish what a 3PL quote is and why it matters. A 3PL quote is an estimate that a third-party logistics provider like ATS Logistics gives, detailing the cost of transporting goods from one location to another. These quotes depend on various factors, and they play a crucial role in helping businesses plan their logistics, budget effectively, and streamline their supply chain operations.

ATS Logistics offers a wide range of services to meet your specific transportation needs, including less-than-truckload (LTL), full truckload (FTL), expedited shipping, international shipping, and drayage services. Regardless of your unique requirements, understanding the key factors influencing your 3PL quote is essential for making informed decisions and optimizing your logistics processes.

 

Key Factors Influencing Your 3PL Quote

 

Several factors can influence your 3PL quote, each of which you should consider when evaluating different freight solutions. Here’s a closer look at the key components that make up your 3PL quote.

 

Type of Service Required

 

The type of service you need is one of the primary factors affecting your 3PL quote. Different shipping options cater to distinct transportation needs, each with its own cost and consideration.

  • LTL (less-than-truckload): LTL shipping is ideal for smaller shipments that do not fill an entire truck. The cost is typically based on the volume, weight, and distance traveled.
  • FTL (full truckload): FTL shipping involves reserving an entire truck for your cargo, making it suitable for larger shipments. Several factors determine the price, such as distance, weight, and equipment type.
  • Expedited shipping: When time is of the essence, expedited shipping services come into play. However, expedited shipping tends to be more expensive due to the urgency involved.
  • International shipping: This shipment introduces a whole new set of complexities, including customs, tariffs, and local regulations. These factors significantly impact your 3PL quote.
  • Drayage services: Drayage involves transporting goods over a short distance, typically between ports, terminals, or rail yards. The quote depends on factors like distance, cargo type, and equipment.

 

Distance and Destination

 

Another critical factor affecting your 3PL quote is the distance your cargo needs to travel and the destination. 

The distance your goods need to cover directly impacts the cost of transportation. Longer distances generally result in higher shipping costs due to the increased fuel usage, extended travel time, and other associated expenses. Similarly, if your cargo needs to cross borders or travel through difficult terrain, you can expect additional costs related to international shipping regulations and challenging roads. 

Destination-specific factors can also influence your 3PL quote. These include:

 

  • Customs: Depending on the country, customs may impose different fees based on the type of goods you are shipping. 
  • Tariffs: Tariffs are taxes applied to the goods you’re shipping. The rate depends on the product type, the country where you ship to, and other factors.
  • Local Regulations: Each country or region has regulations you must adhere to when shipping goods across borders. These rules can increase your logistics costs. 

 

Navigating these complexities requires a logistics partner with global expertise, and ATS Logistics is well-equipped to handle the intricacies of international shipping.  If you’re shipping internationally, we recommend checking out our article — “Strategies To Reduce Your International Freight Shipping Quote“

 

Weight and Volume of Shipment

 

The weight and volume of your cargo are fundamental determinants of your 3PL quote. 

Heavier and larger shipments typically incur higher transportation costs because more fuel, time, and effort are required to move them. On the other hand, if your goods are lightweight and compact, you may qualify for lower shipping rates. Understanding the weight and dimensions of your cargo is crucial for accurate quoting. ATS Logistics assists you in optimizing your shipments to ensure cost-effective transportation solutions.

Additionally, oversized or exceptionally heavy or large item shipping have special considerations. They often require specialized equipment and additional handling, which can increase your quote. 

 

Seasonal and Market Fluctuations

 

Market dynamics and seasonal variations in demand are other factors that can significantly impact your 3PL quote. 

Demand for transportation services surges during peak shipping seasons, such as the holiday rush. This increased demand often leads to higher prices, as carriers must manage increased needs and higher fuel costs. Similarly, during economic downturns or times of market instability, many companies cut back on transportation services to reduce costs. In such scenarios, 3PL providers may offer lower rates to stay competitive. 

Fluctuations in market demand and supply for transportation services can influence pricing. When capacity is limited, rates tend to rise because of increased demand. On the other hand, when capacity is abundant, you may get lower quotes since the carriers may be willing to cut their prices to remain competitive despite volatile market conditions.

 

Tips To Optimize Your 3PL Quote With ATS Logistics

 

At ATS Logistics, we provide customized transportation solutions tailored to your needs. Here are a few tips that can help you get the most out of your 3PL quote: 

 

  • Build a long-term partnership: Establishing a long-term partnership with ATS Logistics can lead to better rates and improved service. Consistency with your logistics provider helps build trust and opens opportunities for cost-saving strategies.
  • Classify and package goods properly: Accurate classification and proper packaging of goods are essential to avoid unexpected charges. ATS Logistics offers guidance on classification and packaging to ensure your shipments are cost-efficient and compliant.
  • Plan shipments during off-peak times: Whenever possible, plan your shipments during off-peak times to secure more favorable rates. ATS Logistics can help you identify windows of opportunity for cost-effective transportation

 

External Resources To Consider

 

Consider exploring other resources for deeper insights into understanding freight quotes and international shipping regulations and tariffs.

To understand how freight quotes work and how to optimize them for your business, check out the following guides:

To navigate global logistics effectively, browse available sources for information on international shipping regulations and tariffs. These include:

These resources can help you gain an in-depth understanding of the different elements that affect your 3PL quote.

 

Conclusion

 

Understanding the factors influencing your 3PL freight quote is essential for businesses looking to streamline their supply chain operations and control transportation costs. By considering service type, distance, weight, volume, and market fluctuations, you can make informed decisions and optimize your logistics processes for a more efficient and cost-effective supply chain. 

As a trusted Cincinnati-based logistics company, ATS Logistics is committed to providing valuable logistics solutions tailored to your specific needs. Partner with us to experience the difference a dedicated logistics expert can make in your business’ success. 

Contact us today for your 3PL freight quote.