Elements of a Freight Cost Calculator

GENERAL

Calculating the amount to be charged for a certain consignment is what determines whether a freight company will have more or few customers. The methodology used to arrive at the charges should be known to the customers for them to predict the range of charges that will apply to their consignments. If such a procedure is kept as a secret by the freight company, many customers will shy away from using it while citing lack of transparency and integrity. It leaves the freight company with no choice but to follow the preferences of customers if they are to stay in business. Therefore, the figures are not arrived at as a matter of guess work but a freight cost calculator helps to determine all this. The following are the elements of a freight cost calculator;

The distance to be covered normally comes first in a freight cost calculator. Many freight companies do not only specialize in delivering goods locally but have gone a step further to ensure that the international market is also served. They therefore offer transport solutions both locally and internationally. For a freight cost calculator, the longer the distance means the higher the freight rates to be applied. Longer freight distances imply that the freight company will incur extra costs in terms of fuel and maintaining the transport crew on board until the destination is reached. This will therefore call for higher freight rates as compared to shorter distances which call for lower freight rates.

The weight of the consignment also comes into play as a determining factor of freight rates. This is also an important component of a freight cost calculator. Weight is normally measured in lbs. When cargo is weighed, it is normally divided into different classes depending on how heavy or light it is. Cargo of the same weight normally belongs to the same class. In calculating the freight rates, very distance calculator  heavy cargo will attract higher freight rates. This is because the transporting vessel can only take a few heavy cargo to reach its tonnage hence leaving other cargo. The heavy cargo will have to compensate for the foregone cargo. Despite the size of the cargo, weight matters a lot as an important element in the freight cost calculator.

Furthermore, the size of a consignment to be transported is also an important element of a freight cost calculator. Consignments that are voluminous will attract higher freight rates. This is because they will occupy a lot of space hence limiting the number of cargo that can be transported during a single trip. It will take few consignments that are bulky to fill up a whole container as compared to less bulky shipments. The bulky consignment therefore has to cover for the other foregone cargo that is not transported. The freight charges become more expensive when two elements are combined. For instance, a consignment that is very heavy and bulky will attract very expensive freight rates considering that it is headed for a distant destination. A combination of any of the elements makes the freight rates to be more expensive.

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