What is cost per ton-mile?

What is cost per ton-mile?

Definition. Measures the average amount of money spent per one mile of distance traveled, in order to ship to a customer a ton of purchased merchandise.

How do you calculate freight cost per ton?

This price is based on the weight and distance of the shipment. For example, if you ship 24 tons of a commodity 100 miles it would be 2,400 ton-miles. If the rate is $0.30 per ton-mile the transportation cost would be $720.

What is the average freight cost per mile?

Here are the current rates for the most popular freight truck types: Overall average van rates vary from $2.30 – 2.86 per mile. Reefer rates are averaging $3.19 per mile, with the lowest rates being the Northeast at $2.47 per mile. Average flatbed rates average at $3.14 per mile.

Which transportation mode has the lowest cost per ton-mile shipped?

Rail is considered one of the most cost effective modes of transportation, especially for large volumes traveling long distances. Due to its ability to move major quantities at one time, rail has a lower cost-per-ton-mile (the cost of moving one ton one mile) than truck.

How do you calculate shipping per ton miles?

Ton-miles are computed by dividing the weight in tons of each shipment transported by the distance hauled.

How do you calculate trucking cost per mile?

To calculate your cost per mile, simply divide your total expenses for the month by the total number of miles you have driven that month. For example, if your expenses totaled $3,000 and you drove 10,000 miles, your cost per mile is $0.30.

How do I calculate freight costs?

Divide the weight (in pounds) of the shipment by the total cubic feet. The result is the density (in pounds per cubic foot). For multiple pallets, add the weight of each pallet together before dividing by the total cubic feet of the shipment. You’ll need to round fractions to the nearest full cubic foot.

How do you calculate shipping costs?

Dimensions of the Package This one’s pretty straightforward: the bigger the package, the more it’s going to cost to ship. Most shipping carriers use a pricing method known as dimensional weight to calculate the rates they offer. This is calculated by multiplying the length, height, and the width of the package.

How do you calculate transportation costs?

Calculating your transportation costs

1. Calculating the total sales revenue. Revenue refers to the total value of the sales you’ve made within a given period. …
2. Transportation-level costs. …
3. Flexibility and speed. …
4. Distance. …
5. Weight, volume, and density of shipments. …
6. Fuel costs. …
7. Seasonal demand. …
8. Service level costs.

How is haulage rate calculated?

A standard pallet is 1,200 x 1,000 base size. For example, if you are quoting on a pallet of goods that weighs 880kg and measures 120cm x 100cm x 220cm, your volumetric calculation will look like this: 1.2 x 1 x 2.2 = 2.64. In this example, the haulage costs will be calculated as if the pallet of goods weighs 880kg.

What is a spot rate in trucking?

A spot rate, also called a spot quote, is a one-time fee that a shipper pays to move a load (or shipment) at current market pricing. Spot rates are a form of short-term, transactional freight pricing that reflect the real-time balance of carrier supply and shipper demand in the market.

What are the 4 types of transportation?

The four primary modes of transportation in logistics are shipments by truck, ship, train and plane — also known as road, maritime, rail and air shipments….Comparing Logistics Transportation Methods

• Truck Freight — Road Transportation. …
• Ship — Marine Transportation. …
• Train — Rail Transportation. …
• Plane — Air Transportation.

What is the most expensive mode of transportation?

However, air is also the most expensive means of transportation; it is generally used only for smaller items of relatively high value—such as electronic equipment—and items for which the speed of arrival is important—such as perishable goods.

Which mode of transportation would cost the most per ton-mile quizlet?

T or F. Motor has the highest cost per ton-mile? False. Air has the highest cost at 80.4 cents.

What is a ton-mile?

Definition of ton-mile : a statistical unit of freight transportation equivalent to a ton of freight moved one mile — compare car-mile.

How do you calculate a ton?

Length in feet x Width in feet x Depth in feet (inches divided by 12). Take the total and divide by 21.6 (the amount of cubic feet in a ton). The final figure will be the estimated amount of tons required.

How is truck CBM calculated?

CBM – cubic meter is calculated by multiplying length, width and height of packages of goods. For example, if the length, height and width of a cargo is 2.3 meters, 1.4meters and 2 meters respectively, the volume of cargo is 2.3 X 1.4 X 2.00 = 6.44 CBM.