How is the price of your freight calculated?
You regularly call on a carrier to deliver your goods, and they regularly send you quotes… But you don’t really know what they include, or whether the prices are fair? In this article, Goëvia talks about transport prices. As a company committed to transparency, we reveal what our carrier rates include and how they are calculated.
What is included in the price of my freight?
When you make a request to transport goods, you need to provide your carrier with a number of items. These will partly determine the price of your transport. For example, you’ll be asked to specify the distance to be covered, the desired delivery time, weight and volume. This data is essential, but not sufficient. Other criteria must be taken into account, such as cost, seasonality and direction of travel. Once a delivery round has been completed, the driver collects goods from several companies. The more you load, the lower the price.
Transport costs take distance into account
Distance is one of the first criteria. The carrier must know where to load the goods and where to deliver them. Your carrier’s rates are generally based on kilometers.
Delivery time: a factor that affects transport costs
If you need to deliver your goods urgently, within 24 hours for example, transport will certainly be more expensive. For express deliveries, a truck can be mobilized just for you. As it will not be able to load other goods, the rate will inevitably be higher.
Factoring weight and volume into carrier prices
The more space your merchandise takes up, the less space there is for other customers’ pallets. As a result, prices will naturally be higher. For weight, the principle is the same. A vehicle must not exceed a certain load, depending on its category.
Freight specificity influences road haulage prices
If you want to transport dangerous or bulky goods, or privatize a truck, the price may be higher. Indeed, if the carrier is obliged to mobilize specific equipment or vehicles such as tarpaulin-covered trucks, the rate will increase.
How do you calculate the price of freight transport?
The price of your freight transport depends on your needs and therefore on the above elements, but not only…
The company also relies on other data, such as its cost price. The calculation is based on the ratio of kilometer costs, driver costs and daily costs. Once these costs are added up, they are divided by 3. Carriers then adapt their rates according to their costs, margins and customer requirements.
Other external factors, such as seasonality, can also affect this rate. Indeed, prices can be higher in summer or at Christmas, depending on supply and demand, congestion in a particular area, etc.
How can you reduce your freight costs?
Reduce your road transport costs! To achieve this, you must :
- Pay attention to seasonality : as mentioned above, some deliveries can be more complicated depending on the time of year. In summer, for example, with the arrival of tourists, many areas become overcrowded, and in some cities, delivery spaces become difficult to access. Plan ahead and anticipate your deliveries.
- Choose a specialized carrier: there are a large number of carriers. To select the right one, you need to look at its specialty and location. If you need to send 1 to 7 pallets on a regular basis, choose a road haulage company specializing in groupage. Choosing proximity also means choosing a carrier who knows his delivery zone and who will be able to deliver your customers in the best possible conditions.
- Working with a direct carrier : you may not be aware of it, but when you book transport, many intermediaries are involved. To cut costs and boost the local economy, you can choose to work directly with your carrier. Don’t know what to do? Choose the Goëvia Online booking solution. In addition to dealing directly with your carrier, you save time and visibility.
Take control of your deliveries with Goëvia!