Frachtbox team

# How to Calculate Freight Charges?

Published 11 Dec 2020

How to Calculate Freight Charges?

What is Freight?

The term freight, which is frequently used in sea and river transport, has expanded its use with the development of the transport sector all over the world. The term formerly used only in maritime transport has become an important part of the entire foreign trade sector, which includes road, air and rail transport. The term "freight" can be summarized as "shipping cost". It is defined in foreign trade as ‘the cost of service paid to the carrier company for cargo transported by sea". But today, with the spread of its use in all areas of transport, this definition has begun to be used as "the fee requested for goods loaded on any means of transport”.

The Freight Contract

The cost of freight, which is considered as a kind of commercial contract, is paid by the person who carries the cargo or takes delivery of the cargo. The freight contract easily determines by whom the price is going to be paid. Both when calculating the freight and in order for the transportation to be carried out in accordance with the standards, some information must be included in the contract. This information includes;

• The name and contact information of the company or person whose freight is going to be transported
• Type of goods to be transported
• The quantity in tons
• Payment methods
• The quantity
• Departure and destination point
• Methods of transport and delivery
• Selection of vehicles suitable for the load to be transported
• Special condition for the transportation of the load

How are the Freight Charges Calculated?

Freight cost is calculated differently for air, road and sea transportation. The reason for this is that the costs vary with each transport mode.

Road transport is one of the frequently preferred types of transport due to its wide network and flexibility. When calculating road transport freight, complete and partial shipments are examined separately. The complete load is calculated based on the distance between departure and destination points and market conditions. In partial freight transport, after determining the volumetric weight of the cargo, the weight to be applied in freight pricing is calculated.

At www.frachtbox.com you may compare thousands of offers for your full or part loads.

Sea Transportation

Sea transport is preferred for large loads in terms of volume.While calculating the freight, criteria such as the volumetric weight of the load and the distance are taken into account. When calculating freight in maritime transport, it may differ depending on transport options such as complete container, partial load and Ro-Ro.

Air Transportation

Air transport is generally used for small loads to reach their destination quickly and is extremely safe in the context of safety standards. It is also often preferred for the transportation of quickly perishable foods. In order to calculate freight in this type of transport, it is first necessary to consider the volumetric weight. First, the category of the load (dangerous goods, live animals, valuables, etc.) must be determined. Then the necessary computations are made based on measures such as stackable/non-stackable, material dimensions and gross weight.

What Factors Affect Freight Prices?

Especially for companies or persons engaged in import and export, freight prices are important. Criteria such as a company's product cost, sales price, and country of shipment are calculated based on freight. There are different factors that affect freight, such as how freight affects companies and the market.

• Volume and weight: One of the factors directly affecting freight is the volume of the load. When calculating the freight price, important criteria are taken into account, for example whether the products fill a container or not.
• Routes: A route which has a high circulation is one of the factors affecting the cost of freight. Since the competitive environment will be high on a route that is in high demand in terms of exports, freight costs can be reduced. To compare freight prices you may visit our website www.frachtbox.com.
• Container type and characteristics: The type and characteristics of the containers preferred for the load are a determining criterion in the calculation of freight. The freight calculation of 20 ft container will differ from 40 ft container, as well as vary in their characteristics. You can get more information about this in our blog entry called: ”Types of vehicles used in logistics".
• Transport time: Transport or transit time is the time from the origin point of the cargo to its destination. An increase in this time also means an increase in freight costs. For this reason, the completion of transportation operations in a short time is important in terms of freight.

One of the methods to get a price for freight is to request offers from carriers one by one that will provide you with transportation. But in this way, it is difficult to make a price comparison. As Frachtbox, we take this burden off you and provide the opportunity to compare thousands of routes offers from different logistics companies.