In the simplest terms, road freight itself is a commodity. Similar to physical commodities, such as oil, natural gas, or steel, when demand is higher than supply, the value of the commodity rises. As we have seen an instant increase in freight rates after Hanjin’s bankruptcy.
Estimation:
Seasonal demand of commodities is also a key factor in calculating road freight rates. Because of changes in supply and demand, certain commodities become more expensive to ship during their peak seasons.