# What is the cost of transportation of goods?

## What is the cost of transportation of goods?

Transport costs are the costs internally assumed by the providers of transport services. They come as fixed (infrastructure) and variable (operating) costs, depending on conditions related to geography, infrastructure, administrative barriers, energy, and how passengers and freight are carried. The cost per kilometer is one of the most important parameters to reduce the operating costs of transport companies. Through this control, the company can evaluate its investment in the pneumatic item (second highest cost in the fleet) and thus reduce costs through products with better performance. Rail shipping 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 of freight at one time, rail shipping has a lower cost-per-ton-mile (the cost of moving one ton of freight one mile) than truck shipping. An air freight shipment is considerably more expensive than the same volume of sea freight cargo. This is mainly due to the capacity available on a plane, the higher fuel consumption, and the operational costs of a plane. It’s cheaper to drive your car than to ship it. On average, it costs about \$180 less to drive yourself (\$530) than to hire a professional auto transport company (\$770).

## How do you calculate cost of goods transportation?

One good method is to calculate by percentage. You can take the total amount of your transportation-level costs and divide them by your sales revenue. This gives you a look at how much you’re spending on transportation by percentage. How are trucking freight rates calculated? Trucking rates are calculated on a per-mile basis. First, take the mileage between the starting and destination points. Then divide the total rate by the number of miles between destinations to get your trucking freight rate. Transport cost is calculated as a function of throughput, modal usage, transport distance and the unit cost of transport per ton throughput. The total overall transport cost is the sum for all commodities of the total transport cost per commodity. Transport costs are the costs internally assumed by the providers of transport services. They come as fixed (infrastructure) and variable (operating) costs, depending on conditions related to geography, infrastructure, administrative barriers, energy, and how passengers and freight are carried.