What does freight shipping cost?

Shipping could be a considerable expense for any business that has to transport products from point A to B. Calculating the freight shipping cost can get confusing with several factors affecting freight shipping costs. It is important to know what can affect shipping costs and effective ways to avoid wasting.

The freight shipping cost is the actual cost to ship cargo from one place to another. These rates may change depending on the various transportation mode, materials, freight weight, the value of contents, location, e.tc.

How to calculate shipping costs?

There are different variables that can affect the calculation of the shipping cost.

1. Transportation Mode

One of the main factors that affect the price of freight shipping is the selected transportation method.

 There are basically four modes:

1. Ocean Freight is the slowest mode of transportation and also the most cost-effective when it comes to international shipping. Ocean Freight is broken into two subcategories full container load (FTL) and less than container load (LTC). 

Intermodal shipping:

Truck Freight:

This transportation method has two categories full truckload (FTL) and less than truckload (LTL). 

Rail freight:

Rail Freight is an expensive type of bulk freight that uses trains to transport raw materials. 

Air Freight:

Air Freight is the most expansive way to transport goods, it is also the fastest.

Each transportation mode is appropriate for different types of cargo. For example, smaller items or lower quantities may have to be shipped by LTL. The key is to choose which shipping mode is best for your shipment at reasonable shipping costs.

2. Chargeable weight

The chargeable weight is also called the billable weight is substantial when calculating the shipping cost. Chargeable weight may be the cargos actual weight or its dimensional weight.

When finding the actual weight, place the cargo on an industrial scale and weigh them. Then, around the actual weight decimals up to the closest whole pound value, thus finding the actual weight of your cargo.

To find the dimensional weight, do the following. First, measure the cargos length, height, and width in inches, then multiply to find the volume in cubic inches. Then divide the quantity by the divisor number provided by the carrier. The resulting number is your dimensional weight.

Once you have got determined the actual weight and dimensional weight of your goods, compare the two numbers. The higher number is going to be the chargeable weight.

3. Location

One aspect which will affect the price across the industry is location. For example, the further a cargo must move, the more expensive it’s going to be. As a result, many carriers will factor in how close a destination is to major cities or metros since these shipping hubs make transport more manageable and accessible.

4. The value of contents

When shipping items of high value, it should be in your best interest to get shipping insurance. This type of insurance offers reimbursement to the sender if items are lost, stolen, or damaged during transit. However, purchasing shipping insurance for your freight will increase the overall shipping price.

Reduce shipping costs with a third-party logistics (3PL) provider

Outsourcing shipping to a 3PL provider can help reduce shipping costs. AFM Logistics Services is a national 3PL provider that can help businesses meet customer expectations without breaking the bank. We are one of the best air cargo agents in Delhi.