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Freight rates are a complex mix of various factors, such as supply and demand, fuel costs, distance, freight type, weight, and volume, and market conditions are just some of the factors when it comes to pricing. Various sources such as a DAT Freight Index can present market predictions and rate findings. 

Key Factors Affecting Freight Rates:

• Supply and Demand: The balance between available carriers and cargo volume in the freight's origin impacts rates. Additionally, a higher demand with limited supply will typically lead to increased rates.  
• Fuel Costs: Constant fluctuations in fuel prices directly affect transportation costs and are often passed on to shippers as fuel surcharges.  
• Distance: The distance between the origin and destination influences the rate, with longer distances generally resulting in higher costs.
• Freight Type: Different types of cargo (dry van, refrigerated, hazardous materials) have varying rates due to specialized equipment and handling requirements.  
• Weight and Volume: The weight of the shipment determines the rate, making oversized loads cost more. 
• Market Conditions: Economic factors, such as a recession, seasonal changes, holidays, and industry-specific events can influence freight rates.
• Carrier Competition: The level of competition among carriers in a particular lane affects pricing, making some of the quieter areas priced higher since there may not be as many trucks to compete with. 
• Accessorial Charges: Additional services such as detention, layovers, and driver assist, incur extra charges.
• Urgency: Depending on when the shipment is needed is also a factor, if the load is hot and needs to arrive at the receiver ASAP, then the rates will be higher for such urgency. Another point is if a load is not scheduled properly and a driver must wait for the delivery date, it can also impact the cost of the load.

Types of Freight Rates:

• Flat Rates: A set price for a particular shipment, regardless of the weight or distance of the shipment. Flat-rate shipping is typically worth it for those who have consistent long haul shipments. 
• Per Mile Rates: Cost per mile to haul goods.  
• Spot Rates: One-time quote for urgent shipments that are based on current market rates and other factors such as weather.
• Contract Rates:  Fixed rates for consistent freight volume agreed upon for a certain time frame. According to FrieghtWaves, contract rates make up about 80% of the market between carriers and shippers. It is clear that consistent lanes are favored for both parties.

Keep in mind that rates for LTL, FTL, intermodal, and international shipments are also variables when it comes to calculating transportation costs.

How to Calculate Freight Rates:

While freight rates can be complex, understanding the basic components can help estimate the costs. Here's a simplified formula:

• Base Rate: The starting point cost for transporting the freight.
• Fuel Surcharge: An additional charge based on current fuel prices.  
• Accessorial Charges: Fees for additional services/wait time.
• Taxes and Fees: Government-imposed taxes and fees.