Freight rate plays an important role in cargo transportation market. Freight rate denotes the price taken by transportation carrier/vehicle owner for delivering an item or goods from destination point to end point. The chargeable amount may vary depending upon weight or nature of moveable goods and distance covered.
By acquiring a good rate for their freight from load provider, the profit margin of the transporters will be increased and they will be able to pay their associates like driver/staff a good amount of money. This will encourage the staff to come in the transportation industry.
If transporters can negotiate with the load provider sufficiently, they will get the capability to provide improved freight to the truckers which they acquire from the local truck transport market. By getting good paying freight the truck owners and their driver can make their financial stability better. The truck owner can also find opportunities for cost reduction.