What are the factors that decide the transportation charges in India? Do you know?
Businesses need to have clarity on how truck transportation charges in India are calculated. If you understand the factors that influence transportation costs, you’ll be able to make informed decisions. Being aware of what increases costs in south India as well as other parts of India can also help you find ways to control them.
You can even negotiate with transport companies for better rates and even ask them to exclude the service you do not require, so you do not pay for that unnecessarily.
Companies that offer transport services in Kochi and other cities of South India, calculate the trucking costs by using both fixed and variable expenses each has its own significance in the total cost of cargo transportation. Transport companies use these costs to decide the right prices. Have a look at what comes under fixed and variable expenses.
Fixed costs remain constant regardless of how much the truck operates in South India or other parts of the country. These costs include:
These transportation charges in India change based on how far the truck travels and its condition. These costs include-
The standard formula used to estimate trucking costs is:
Apart from these expenses, logistics companies apply a profit margin of almost 10-20%, depending on market conditions and competition. This is how the trucking cost is calculated.
If businesses in South India or other regions are not clear about the transportation charges, they will not be able to plan their transportation budget. At the same time, there may be chances of paying for a load they have not sent. Thus, for businesses such as e-commerce companies and manufacturers, it is important to know how transportation cost per kilogram is calculated.
The standard formula used is:
But the final transportation charges in India depend on a few important things:
Sometimes, transporters charge based on size instead of actual weight. This is common for large but light items. They use this formula:
Whichever is higher—actual weight or volumetric weight—is used to calculate the cost.
Companies providing transportation service in Kochi calculate the cost per kg based on how far the goods need to go. Generally, prices are:
Shipping between big cities is usually more economical than sending goods to faraway places.
Even for small shipments, a truck transportation service company may set the smallest weight limit. The route and service provider may decide the range, usually between 10 kg and 100 kg,
The total transportation cost in India depends on many things. We can find it using a simple formula
Total Transportation Cost = Base Freight Charge + Handling Charges + GST + Additional Services
Let’s learn about each part:
Base Freight Charge
This is calculated using either the per-km rate or the per-kg rate. The transporter’s pricing model decides this
Base Freight = (Rate per km × Distance) OR (Rate per kg × Weight)
In India, the average base freight for a full truckload (FTL) ranges from ₹15 to ₹25 per kilometre for standard trucks.
Handling Charges
This includes money for loading and unloading the goods. For normal items, this cost is usually between ₹500 to ₹2,000 per delivery.
In India, transport services have a tax. It is 5% if no credit is taken and 12% if credit is used.
Additional Services
Transport charges in India change from place to place due to different roads and truck availability.
TruckGuru follows these pricing methods to provide accurate and fair transport charges. We help businesses in South India and across the country to minimize transportation costs by:
Want to transport goods at the best rates? TruckGuru is your best choice! Contact us now!
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