How are freight rates determined for specific lanes?

Destination freight availablilty, tolls, commodity, terrain just to name a few

 

Supply and demand. For example on the flatbed side of things California Consumes a bunch, but produces relatively little. So I get 2.5-3.0 per mile going in on 2000+ miles and take 1.5-2.0 coming out. It all works out in the end well enough.

 

As said above...it is market.
A rate should reflect distance, time, tolls, commodity type and shipper/receiver "easiness level" and your own cost per mile. So at least you know, whether or not there is any money for you in that deal. However, even though that you come up with your minimum breakeven rate, does not mean you'll even get that when everybody else takes that load cheaper.
In the end, there is no analytical approach as to why a lane pays this or that, it is about what people agree to haul it for. For instance, you can get relatively a good rate from Chicago to FL but coming back, there is very little freight out of there. If you're lucky to even find it, it pays 1 dol per mile, and even that is not always true. So when people go down to FL from Chicago they need to consider taking cheap freight or deadheading out of there, so they need a way higher rate out of Chicago, much higher from the rates going to... Virginia, or Texas.

 

Rates within a company for just Drivahs are usually state secrets.

I once got a eyeful of rates in one company years ago and they were averaging 2.50 a mile give or take; off the printer. They threw me out. But Ive seen enough.

 

Usually the dumbest guy around sets the rate. Then goes out if business, and the damage he did remains.

 

I don’t know what you been seeing out of Texas lately but I want the same rate to go to Texas as I do to go to Florida!!!

 

True but at least you can get something out of there. In FL as soon as I am empty I don't waste time, I deadhead north.

 

Hey look $1 per mile to get me half way home. I will just do that twice. And call it a good week.
This is what sets the market rate.

 

Depends on how deep in Florida we talking. It’s been a while but sometimes I can find a in state load then bounce north!! Texas has been okay but not great but neither has the northeast the last couple of weeks!