A Basic Guide to Freight Charges

Based in Nebraska, Seward Motor Freight Inc. was formed in the early 1940s to haul freight between Omaha and Seward. The company was incorporated in 1969 and has since expanded its reach throughout the U.S. An award-winning freight shipping company, Seward Motor Freight currently operates over 250 trailers and 100 tractors across the U.S. and makes use of different types of payments for transporting shipments.

Freight charge is the amount paid to a carrier company for transporting cargo from one point to another. It is also called freight rate. This amount depends on the mode of transportation (air, land, or water), the distance from the pickup point to the destination, and the cargo volume and weight.

There are various types of freight charges. Some of the basic ones are consignee collects, FOB (Free-on-Board) destination, FOB origin, and freight prepaid. Each charge differs in how payment is received and who handles the payment responsibility.

For example, consignee collects is a freight rate where the buyer of the goods pays the entire cost of delivery once they receive the cargo. They also handle other necessary responsibilities tied to the delivery, including taxes and customs declaration. For FOB destination, on the other hand, the consignor or shipper handles the entire payment of the freight charges. With FOB origin, the shipper pays the costs up to a specific destination, after which the buyer takes over.

 

ATA Report Gives Insights on US Trucking Industry at Close of 2019

Founded in the early 1940s, Seward Motor Freight originally hauled freight between Omaha and Seward, Nebraska and the surrounding towns as a “Less than a Truck Load” operation. Today, Seward Motor Freight has grown significantly and changed their business model to a “Truck Load” operation across the Midwest, Central, South and East areas in the United States. The company has been a supporter and member in the American Trucking Association (ATA) for over 25 years. According to ATA’s American Trucking Trends 2020 report, the trucking industry carried 11.84 billion tons of freight across the country in 2019 generating $791.7 billion in revenue. The industry accounted for 80.4 percent of all US freight. The report also stated that trucks moved 67.7 percent of surface freight between the United States and Canada and 83.1 percent of freight with Mexico. In total, trucks moved $772 billion worth of cargo between the United States and its neighbors. Interestingly, 91.3 percent of carriers operated a fleet of six or fewer trucks. Slightly over 97 percent operated 20 of fewer trucks. On the jobs front, the trucking industry supported 7.95 million jobs, including 3.6 million driver jobs. Looking at driver demographics, men made up 93.3 percent of truckers. Women comprised a paltry 6.7 percent. Minorities made up 41.5 percent of truckers.

Most Popular Tractor-Trailer Truck Brands

Seward Motor Freight is a long haul freight company based in Seward, Nebraska, that has been in operation since the 1940s. Fully committed to its drivers, Seward Motor Freight is a dry van company with a fleet consisting of Peterbilts, Volvos, and International trucks.

The most popular truck brand in the US is Freightliner. Owned by Daimler Trucks North America, Freightliner was established in 1942 accounts for almost a third of all new trucks purchased in the United States.

Freightliner is closely followed by International. International’s parent company, Navistar, is owned by the Volkswagen Group and is one of the world’s leading truck manufacturers. International trucks make up about 23 percent of the market share, according to data from 2018.

Third in line is Peterbilt, along with Kenworth and PACCAR. Those three brands are under the same ownership, and PACCAR had a record year in 2019, with almost 200,000 trucks sold.

Finally, Volvo is a consistently growing player in the US market, and it has a new plant in Virginia. Volvo trucks are becoming more popular, and some estimate they might overtake PACCAR in the near future.

Working Limits for Truck Drivers

The story of Seward Motor Freight began in the early 1940s, when the company hauled freight between Seward and Omaha, Nebraska. Seward Motor Freight originally obtained authority to haul Less than a Truck load freight, during the 1970s permits were obtained for Truck Load freight and deregulation in 1980s changed freight movement across the Unites States for all trucking companies. Today, the company’s drivers haul freight throughout the 48 contiguous states, abiding by the Department of Transportation (DOT) Hours of Service rules and regulations.

Commercial truck drivers, have limited hours each day they can spend each day driving and working. A commercial truck driver has a 14-hours window of work. All work, not just driving, counts toward those 14 hours. After 14 hours, truck drivers must rest for at least 10 straight hours.

Truck drivers can spend a maximum of 11 of those 14 hours driving with a required 30 minute break after 8 hours of driving.

Finally, commercial truck drivers can work a maximum of 60 hours within seven days or 70 hours within eight day period. DOT Hours of Service allow a driver to reset their 60 or 70 hour clocks by taking 34 consecutive hours off in the sleeper berth, off-duty, or a combination of both.

Christian Record Services Sponsors Children at Blind Camp

A truckload carrier company in Nebraska, Seward Motor Freight has a proven reputation for on-time freight delivery throughout the Midwest, South, Southeast, and East Coast. An active partner in various community causes, Seward Motor Freight supports organizations such as Christian Record Services.

A charitable organization dedicated to improving the quality of life for legally blind individuals, Christian Record Services offers free publications in audio format, braille, and large print. The organization also sponsors children to attend camps through the National Camps for Blind Children each winter and summer. Christian Record Services covers the cost of room and board at several beautiful summer camp settings, among them Camp Blue Ridge in Montebello, Virginia, and Kulaqua Independent Living Camp in High Springs, Florida.

All blind camps are state certified and adhere to high standards of safety. Campers can enjoy a range of activities such as archery and arts and crafts, all intended to increase their sense of independence and confidence.

A Brief History of Trucking and the Interstate Commerce Commission

A truckload carrier company headquartered in Nebraska, Seward Motor Freight, Inc., can trace its origins back to the 1940s, and in 1969 the company was incorporated when purchased by Wayne and Joan Tanderup. In the following years, the owners of Seward Motor Freight filed for authority from the Interstate Commerce Commission, obtaining permission to cross state lines which gave the company the ability to carry freight throughout the contiguous United States of America.

Founded in the 1880s, the Interstate Commerce Commission came about as a way to regulate the railroads. As the first federal regulatory entity in the United States, the commission governed how railroads charged for passage and freight.

By 1940, the commission had extended into other areas of transportation, including trucking. Members of the commission were given the power to examine and establish fair rates across several transportation sectors. The commission lost jurisdiction over certain aspects of trucking and rail as a result of a move toward deregulation in 1980, when the Staggers Rail Act and the Motor Carriers Act were passed. Both pieces of legislation were intended to loosen federal control over the rail and trucking industries.

After the Interstate Commerce Commission disbanded in 1995, its responsibilities were dispersed between other federal agencies, such as the Federal Highway Administration and the Surface Transportation Board.

Truckers Prefer Deadheads Over Low-Paying Backhaul Loads

Freight truck on the road
Photo by VanveenJF on Unsplash

Operating since the early 1940s, Nebraska-based trucking company Seward Motor Freight has received consecutive awards from the Nebraska Trucking Association since 1986. In 2018, Joan Tanderup, CEO and president of Seward Motor Freight was named "Outstanding Woman in Business" in Seward, Nebraska. 

Over the past half-century, the company has grown from a small less than a truck load company (LTL) to a truck load (TL) company hauling general commodities across the continental United States; as the demand for shipping increased, so too has the trucking industry—specially the rates that truckers are compensated for hauling the shipper’s commodities . 

As pay structures evolve, more truckers are being selective about the types of routes they prefer to drive. A recent poll published by the digital truckload freight marketplace DAT Load Boards found that most truckers would rather drive home empty, or “deadhead”, than take a low-paying backhaul load. A minority said they might consider a cheap backhaul if it could be accommodated within their schedules. Normally, rates for outgoing trips (or “headhauls”) are higher than the rates for return trips. For instance, a headhaul trip from Los Angeles to Phoenix has a higher rate than the return trip from Phoenix to Los Angeles. The same is true with headhaul trips from Philadelphia to Boston; these also pay higher than the return routes. Truckers solve the issue of lower backhaul rates by charging fees that are high enough to compensate for both the headhaul and the empty backhaul. This way, the trucker can avoid wasting loading and unloading hours, and burning more fuel on a cheap backhaul.