A tool that effectively and instantly helps to calculate charges will surely be indispensable for any company to get an idea of their expenses. The freight rate calculator is one such tool that has become popular among shippers, carriers, and brokers. Even the clients are happy as they get a clear idea of the pricing. It has become an essential tool for accounting and budgeting for a freight company. Based on some predetermined guidelines, the calculator offers accurate rates to every customer. It enables them to choose a carrier that gives them the lowest rates. A freight quote calculator is used to determine both LCL (Lesser than Container Load) and FCL (Full Container Load). While calculating FCL, the quotes are given based on the distance to be covered, but for LCL, the weight matters. If you compare both, you will find that FCL rates are cheaper than LCL.
Both the customer and the freight company have benefitted from the introduction of this tool. The freight company can use the calculator to get quotes from different shipping companies for small, medium, or large shipments and share them with their customers. The pricing value thus can be compared and contrasted for acquiring the best deal. It is usually seen that the shipping companies that use the freight calculator to negotiate the different rates can save 20% to 40% of their shipping costs. Everyone, be it a forwarder, client, or carrier, gets a transparent notion of the trending market rates, and, thus, there’s no scope of miscommunication or guesses.
Saves shipping time
It not only helps in saving money but also aids in saving shipping time. When you use the calculator, you get to see the rates of the various shipping companies instantly. Earlier, a client had to spend hours or maybe days gaining the quotes and cracking the best deal. That is now totally out of the scenario. The documentation process and the dispatching of a shipment do not take long once the rates are sorted.
Eliminates the chance of over-pricing or getting duped
These calculators use mathematical equations to depict the rates. So, everyone receives the same price structure for their shipments. There’s no scope of getting charged excessively by the shippers or duped by the brokers on the pretext of miscellaneous costs.
Builds a trust
Once you get the desired quote and rely on a carrier to transport your goods, you would again like to work with the same carrier in the future if your first-time experience is good. A long-time relationship grows, and you learn to trust it.
Some misconceptions about it
Shippers and customers often believe that the calculators only serve the cause of the shipping companies. They think that these tools exist to benefit the latter only. But it’s far from the truth. If you are one of those who believe so, try getting a quote without using the freight rate calculator. The difference in pricing will clear all your doubts.
So, these freight calculators have made the task of rates prediction very easy. If they were not worthy, they wouldn’t have been used widely by the people associated with the logistics chain. Now they are also proving their value in calculating the return of investment (ROI) for the various companies.