In the dynamic world of logistics and transportation, calculating freight rates correctly is essential for optimizing costs and increasing business efficiency. Each shipment requires an individual approach based on various factors such as the type of transport, weight, distance and specific cargo requirements.
In this blog, we explore how transportation prices are defined and which factors most influence the calculation of tariffs in different types of transportation.
What are freight rates?
Transport tariffs define the pricing system for different types of goods transport – road, rail, sea or air. Their purpose is to facilitate the organization of shipping, enable transparency in pricing and optimize costs for carriers and service users.
Types of tariffs according to application:
- Local: Valid within urban or regional areas.
- Internal: Refers to transport within the borders of a single country.
- International: Covers transportation between two or more countries.
Key factors for calculating transport tariffs
1. Type of transport
The choice of transport mode significantly affects costs. For example, air transport is faster but more expensive, while sea and road transport are more economical for larger quantities of goods.
2. Weight and quantity of cargo
The weight and volume of the cargo affect the price, taking into account additional costs such as packaging or pallets. Larger quantities often result in lower costs per unit.
3. Cargo density
The ratio of weight to the space occupied by the cargo (dimensional weight) plays a key role in calculating rates. Goods that are light but bulky may have a higher transportation cost.
4. Location and destination
Distance and accessibility of the destination also affect prices. Remote or difficult-to-reach places often increase transportation costs.
5. Additional services and distance
Special requirements such as controlled transport conditions (refrigerated trucks) or specialized equipment also increase rates. Longer routes usually mean higher costs.
How are costs calculated by type of transportation?
1. Rail transport
- Calculation: Based on the weight or volume of the cargo.
- Advantage: Stable and predictable prices for larger quantities of goods.
2. Road transport
- Calculation: Depending on weight, dimensions and type of vehicle.
- Advantage: Flexibility in delivery over shorter distances.
3. Sea transport
- Calculation: Two models – FCL (full container) and LCL (collective transport). Costs include transportation, port handling and additional fuel costs.
4. Air transport
- Calculation: Based on weight or dimensional weight.
- Advantage: The fastest method of transport, ideal for urgent shipments.
Tips for optimizing transportation costs
- Calculate the density of the cargo correctly. Measure the length, width, and height of the shipment and include the packaging.
- Choose the right type of transportation. Depending on your time frame and cargo volume, choose between economical and fast options.
- Use combined shipments. By combining smaller shipments, you can reduce costs per unit.
- Check additional costs. Always factor in insurance, customs and handling costs.
Conclusion
The calculation of tariffs for freight transport is based on a combination of factors such as the type of transport, weight, distance and additional services. Proper planning and optimization enable significant savings, while hiring experts such as freight forwarders can simplify the entire process.
Given the complexity of transport tariffs, digital platforms that automate the calculation and finding optimal solutions are becoming essential for modern logistics. The key to success lies in understanding the entire process and using available tools to maximize efficiency.
