Full Truck Load Rates in Australia: What Shippers Should Budget For

Full truck load rates (FTL rates) offer both the best value and reliability for the transport of large amounts of freight over such a long distance across the country (Australia). If you are sending pallets between states, providing retail outlets or moving bulk products between distribution centres, knowing about full truck load rates can maximise your logistics costs savings.

The vast distances, diverse geographical landscape and seasonal fluctuations in Australia will affect your freight rates. This article outlines some of the key elements that create a full truck load rate and what shippers should consider as a reasonable cost estimate for their Budget.

What Are Full Truck Load Rates?

Full Truck Load (FTL) pricing applies when a freight shipment takes up all available space within a single truck; typically FTL shipments will come directly from an individual shipper and will go to only one or two locations. This type of shipping will take less time than standard shipping (i.e., LTL), have fewer stops, and will be less susceptible to damage during the shipping process as the entire truck is allocated to a single shipper. Because of the lack of shared use, full load prices are typically calculated based on the entire trip as opposed to a per-pallet basis.FTL pricing is typically utilized by manufacturers/wholesalers and growing ecommerce businesses with lots of shipments

Key Factors That Affect Full Truck Load Rates in Australia

A variety of cost drivers affect full truckload rates and understanding these factors allows shippers and receivers to better manage their costs and not experience unexpected costs.

Distance & Route

Long haul routes in Australia are a significant factor affecting the pricing of full truckloads. A direct route from one metropolitan city to another, such as Sydney to Melbourne, is likely to be less expensive than a trip from a regional or remote area into a metropolitan hub. The availability of backhauls also affects trucking rates with routes that do not have any backhauls having higher rates than routes with backhauls.

Fuel Prices

Fuel is a critical and large component of full truckload pricing. When fuel prices go up, it is commonplace for trucking companies to apply a surcharge for fuel to their customers. Fuel surcharges can fluctuate from month to month.

Vehicle type and trailer size

Different prices will be charged for rigid trucks, semi-trailers, and B-Doubles due to the different types of trailer. The larger the trailer the more freight it can carry; therefore, the larger the trailer the greater the operating costs. You need to consider the type of truck that you need to carry your freight when determining the final rate.

Weight and Size of Freight

Even when you book a truck for a full load the weight of the freight is important. Heavier freight will use more fuel and cause more wear and tear on the truck. This will be taken into account with the pricing. Additionally, freight that is oversized or has an unusual shape may incur additional costs.

Typical Full Truck Load Rates to Budget For

FTL rates will vary significantly by carrier and route. Most Australian shippers receive best rates for FTL pricing on the basis of the linehaul price plus surcharges for transport costs and product handling.

Due to higher demand for freight transport and the availability of return loads from interstate FTL movements, there is significant competition for transport rates between many of Australia’s major cities than in other areas.

When estimating shipping rates, a general guideline may include:

• The base linehaul price
• Fuel surcharge
• Road tolls/charges
• The cost of loading/unloading products
• If applicable, the cost of waiting for loading/unloading.

By planning for these factors at the beginning of the transport process, it will help develop predictability in the transport cost.

Seasonal Demand and Its Impact

Hauliers' full truckload costs may increase during peak times (e.g., Christmas) when truck demand is at its highest, making it hard to find available trucks and load space. Additionally, capacity limitations may be created by weather conditions and seasonal (agricultural) harvests in localized areas.

Booking early and staying flexible with pickup dates can help manage these seasonal increases.

How to Keep Full Truck Load Rates Under Control

Service quality does not have to be sacrificed for managing and optimizing

It was November 2022 that marked an extensive spectrum in Jecissa, who is now an expert author and a great logistics wizard in those areas; simplifying complicated writing without complexity was her driving passion.