Logistics professionals know that freight pricing involves many factors that can substantially affect the total. Cost calculation depends on a range of conditions.


Key steps to help

estimate freight costs


1. Establish the cargo characteristics
  • Cargo weight and volume.
  • Cargo type, such as dangerous or perishable goods.
  • Special transport requirements, such as temperature control.

2. Choose the route and transport mode
  • Identify the origin and destination.
  • Select road, rail, sea or air transport as appropriate.

3. Include additional expenses
  • Fuel costs.
  • Vehicle depreciation.
  • Drivers' and other employees' wages.
  • Customs duties, fees and taxes.
  • Cargo insurance.

4. Allow for seasonality
  • Peak periods such as holidays and agricultural seasons increase demand for transport and may raise rates.
  • Winter and rainy seasons can bring poor roads and delays, increasing costs.
  • Some regions apply seasonal rates or extra charges reflecting special conditions.

5. Compare logistics providers' offers
  • Compare different providers to find the most advantageous offer.
  • Review the company's experience, market reputation, client feedback and projects.
These steps help produce an accurate estimate and select a suitable business option. A basic illustrative formula is:
Cost = (Rate per km × Distance) + (Rate per kg × Weight) + Additional expenses
Where:
  • Rate per km — transport cost per kilometre.
  • Distance — distance between origin and destination.
  • Rate per kg — transport cost per kilogram of cargo.
  • Weight — cargo weight.
  • Additional expenses — costs of additional services.

Also allow for force majeure events that may increase freight costs.

Effects of force majeure

  • Delays and downtime
Natural disasters, military action and epidemics can cause delays and downtime, increasing total transport costs.
  • Route changes
Force majeure may require rerouting, increasing distance, delivery time and fuel or other resource costs.
  • Additional expenses
Additional insurance, cargo security and other safety costs may arise.
  • Rate increases
Carriers may raise rates in response to increased risks and costs.

These factors make force majeure important in planning and cost estimates. To save time, you can contact New City's specialists, who can help arrange delivery from around the world and select a suitable route and rate for your task.