To calculate the “cost per mile,” divide the cost by the number of miles you drove that month. By submitting this form, you confirm having read the terms thereof. You will now see your cost per Km reduced as by using Teleroute you have reduced empty running. Fixed costs are expenses that your company incurs whether your trucks are hauling a load or are in the parking lot. Planning Tools Transportation Cost Distance Calculator Currency Converter In-Route Document Trucks List Services: High Quality Logistics Services. The following sections use fictional charts to illustrate each cost category. Subtract the per-mile cost of the trip from the per-mile rate to arrive at the per-mile profit of the trip ($4.56 - $0.74 = $3.82). Usualy is 10 years. How to Calculate Revenue and Profit per Mile. Mobile and web app for factoring, fuel discounts, credit reports and more. The cost of the trip is 74 cents per mile. You will receive a confirmation email shortly. Extra Turnover through Teleroute (€/month). Please try again later. Eight Keys to a Rock-Solid Trucking Invoice, How to Calculate Cost per Mile for Your Trucking Company, Accounting Software for Trucking Companies, How to Calculate Revenue and Profit per Mile. 5.00 per KM We at GIR are committed to provide professional services to take care of Total Logistics needs of our customers and make them satisfied every time. Average is 2%. Calculate prices for all common means of transport. This free fuel cost calculator estimates the fuel cost of a trip based on fuel efficiency, distance, and gas price using various units of measurement. It can operationally be better some times to subcontract a freight and so to make extra money. Or perhaps you’re consideringbecoming an owner operator. Nationally, 310 carriers with five or more trucks were forced to shut down in 2015. It helps identify spending patterns and areas where you can cut back if needed. 2. Cost per km: 51.28 cents Cost per year: $6,988 Why would anyone want to know the cost per kilometre for owning a car? The % of which your truck reduces in value per year. 1. uses a set rate for each kilometre travelled for business 2. allows you to claim a maximum of 5,000 business kilometres per car per year 3. doesn't require written evidence to show exactly how many kilometres you travelled (but we may ask you to show how you worked out your business kilometres, for example diary records) 4. uses a rate that takes all your vehicle running expenses (including registration, fuel, servicing and insurance) and depreciation into account. Identify information sources and approaches for measuring fi xed and variable costs. Note : (1) The above are Transportation Charges only and does not include Loading/Unloading or Labour Charges. This makes it difficult to post a profit. Teleroute decreases your empty running by 25%. No worries, as the calculator will prefill the data with typical industry values so you can quickly get results. Find Load: Search Load available loads on our website; every day we get more than 3000 loads 4. If suppose your truck gives 10km/l that means 6.5rs/Km so you charge double of that rate/km +… A commercial truck can easily consume more than $70,000 of diesel fuel per year. Fixed costs include expenses like insurance, property leases, permits and other services. Here is what it looked like for Chuck’s Trucks in August: To determine the total monthly cost per mile, simply add the fixed, variable and salary costs. If you pay your employee an allowance based on a per-kilometre rate that we consider reasonable, do not deduct CPP contributions, EI premiums, or income tax. Usualy is 5 years. Enter the number of km per year per truck on average, This is the % offer margin you add to your cost price, Include salary, social benefits, holiday pay, Include overnight stays, meals, other expenses. To help you get the most accurate results from the profit calculator, you need to have the following data ready to input in the tool: Don’t have the above data at hand? Fuel consumption on a 8T to 34T is 3.5 to 1.8 km per litre. Post Truck: Post your Truck to get immediate load for your truck based on location you are available and Preferred destination / route. If your cost per mile seems high, one solution is to take on more work. Rates per kilometre, which may be used in determining the allowable deduction for business travel against an allowance or advance where actual costs are not claimed, are determined using the table published on this website under Legal Counsel / Secondary Legislation / Income Tax Notices / Fixing of rate per kilometre in respect of motor vehicles. All owner operators should know how to determine your trucking cost per mile. Average empty running when using Teleroute (%), Cost per vehicle (per km) when using Teleroute. Factoring for oilfield services companies. Find Total Sales Revenue. Online calculator. The largest operating expense is diesel fuel. The cattle transport costs calculator gives producers access to an easy to use an online tool to assist them in calculating their livestock transport costs. Fuel : Rs. Here is how Chuck’s Trucks calculated variable costs. The type of vehicle and the driving conditions usually determine whether we consider an allowance to be reasonable. These costs include fuel, maintenance, repairs, meals, lodging and other expenses incurred on the road. Fixed Costs. 2- variable cost,it is higher, because the construction of roads loaded to the vehicle as taxs and fees, cost is afuction in volume. It needs to be part of your calculation of cost-per-mile. Only three steps: fill in the fields to calculate your cost per kilometer. This is the total cost per Km for 1 truck and trailer. Calculate unit cost measurements for fi xed and variable costs related to transportation. 1 Calculate the costs per vehicle Km/Year per vehicle (km) Enter the number of km per year per truck on average Profit mark up Rate (%) Post Loads: Post your Load to get maximum options with best Freight rates 2. In addition, explore hundreds of calculators including a gas mileage calculator, horsepower calculator, and many others addressing topics such as math, finance, fitness, health, and more. For example, “fixed costs per mile” is calculated by dividing $2515 (fixed costs) by 8,400 (miles), which gives us $0.30 per mile. Using the same method, we calculate variable costs to be $0.70. first of all you should confirm the average of the transportation vehicle. This calculator is designed to provide you with a simple-to-use aid to calculating the cost of transporting stock on a ‘per kilogram’ basis, a ‘per head’ basis and a ‘total cost’ basis. Cost cents/kg (live or dressed) These figures are useful in working out the price premium required to exceed the increased transport cost associated withaccessing markets further away. Fixed costs are expenses that your company incurs whether your trucks are hauling a load or are in the parking lot. How much do you invest in Teleroute. rates depends on distance: rates of transportation is the prices of vehicles services, there is multi criterions for rates connected with ratio, volume, distance and demand. You should calculate these costs monthly to get the most up-to-date information on how much your company is spending. Variable costs can range greatly from one time period to the next. Incorporate additional transportation you’ll use into your costs. If not sure contact your account manager. Unfortunately, an error has occurred whilst registering for the newsletter. High fuel prices, personnel costs, insurance, all steadily going up. In the chart below, the fictional company Chuck’s Trucks Inc. calculates fixed costs by the mile for the month of August. 2) Cost per km travelled. Alpega Group N.V. Transport Services Head Office: Belgicastraat 17, 1930 Zaventem BELGIUM. The chart divides each fixed cost by the 10,000 miles that Chuck’s Trucks drove that month: Variable costs are the money that your company spends in operating its trucks. Trucking is a tough market and poor bookkeeping hurts a company’s chances of survival. Calculate your total lodging costs by adding together the total amounts of each place you plan to stay. You have successfully registered for our newsletter. Is it better to own and run a car? rates per kilometRe. Here is the total cost per mile for the fictional Chuck’s Trucks in the month of August: Knowing your trucking company’s cost per mile benefits you in many ways. 3. Average is 7%. There are various factors that have to be considered to be able to calculate the transport costs correctly. We were not able to calculate your potential savings. How? The final section brings all the costs together to calculate a company’s total cost per mile. For air shipments, the cost is calculated by multiplying the rate (provided per kg/lbs) for the “chargeable weight”, which is calculated based on the weight or volume of goods. $1.38 The average per mile operating cost for the trucking industry. Although these rates represent the maximum amount you can deduct as business expenses, you can use them as a guideline to determine if the allowance paid to … Click here to use our cost-per-mile/profit-per-mile calculator spreadsheet. Rates at transportation , calculation cost transportation cargo , transportation cost , how much transportation price transportation cargo cost. The number of trucks, their prices and depreciation details and residual value, Number of kilometres each truck drives per year, Costs related to trailers, drivers, personnel and fuel. But even with rising costs, you still can improve your margins and increase your profit, and so outsmart the competition. 3) Number of km to travel. Calculate Your Own Cost-Per-Mile: The Cost of Trucking. 4. Assess your sales in terms of total sales revenue subtracted by the total … This is increased compared with the step2 as a result of running empty. As you put more mileage on your trucks, you will see the variable costs increase. MICHELIN 4 LIFE PACKAGE Extend the life of a tyre by up to 300%. The amount you pay your drivers is likely your single biggest expense. Transportation prices at 07.01.2021. Transport tariffs may finally be up, but the costs are increasing faster. The calculator below makes a pretty simple thing - first it calculates the total cost of transportation as multiplication of distance by price per kilometre, then it calculates a number of tonne-kilometres as the multiplication of distance by mass of cargo and then the total cost is divided by a number of tonne-kilometres so you will have the cost of transportation for 1 tonne-kilometre. Include office, rent, utilities, driver and training. Cost per mile also allows you to determine an appropriate per-mile rate to charge shippers. 3. Carriers that do not track and control their operating expenses may soon go out of business. International trade finance in 40+ countries. Whats your truck cost per … Just the diesel cost ranges between R3.3 and R6.4 per km, which only makes up 30% to 40% of your total cost How to counter high fuel prices and other increasing transport costs. Knowing your company’s operating expenses on a per-mile basis gives you the information needed to be profitable. Conversion based on the cost of a kilometer. Freight Metrics. Include all other operational costs for 1 truck and trailer. RTS Financial and RTS Carrier Services Shamrock Trading Corporation Brands. This is the total cost per month for 1 truck and trailer. Fixed costs include expenses like insurance, property leases, permits and other services. Is it better to take a bus, taxi, or uber? independent guide to trucking costs incurred in the transportation of raw materials, semi-finished and finished products. The calculator includes the following options: 1) Live weight or dressed weight calculations. Enter the total number of trucks you want to cost calculate for. Reasonable rate per-kilometre. Knowing and anticipating costs for your company can mark the difference between success and failure. Running a trucking company without knowing your costs is like driving with your eyes closed. Please contact our customer care executive in case you require Loading/Unloading or Labour Services along with Transportation, charges for which shall be in addition to Transportation … Calculating freight costs for all transport modes. The period in which the trailer reduces value. If you have specific questions about calculating cost per mile, it is also a good idea to consult a certified public accountant. Overhead costs such as office/training (€/year). ©2020 RTS Financial Service, Inc. and RTS Carrier Services, Inc. All rights reserved. Please try again shortly. Besides of the costs for e.g. Check up top date fuel prices per country on www.energy.eu. Here you see your cost per Km. Not only will this increase revenue, but your cost per mile should decrease. The per-mile profit is $3.82. Omit just one cost of doing business from your calculations and you will not have a complete picture of your company’s bottom line. Background/Objectives: This paper considers the issue of transportation cost calculation in terms of a "Full Truck Load, FTL" model for the "to and fro" trip which is called a "round trip". Transportation of the goods to distant lands is one of the ancient practices followed by human beings. Factoring for trucking companies operating in Mexico. ratios are functions in distance. Total = cost per unit per kilometer * units * kilometers If you could show what the value for a set of ports and units appears as, and then what it should appear as, we would have a … The is the remaining value of the trailer after the depreciation period and depreciation rate. The per-kilometre rates that we usually consider reasonable are the amounts prescribed in section 7306 of the Income Tax Regulations. Find other trustworthy carriers through Teleroute and enter your monthly profit figure. These calculations will be useful in helping you make these important decisions. To ensure accuracy in calculating your costs per mile, you must account for your company’s expenses. The period in which the truck reduces value. Your personal data will be processed as per Alpega privacy policy. If you do not know the cost of each mile your trucks drive, you cannot know the best per-mile rate to charge your shippers. The % of which your trailer reduces in value per year. The is the remaining value of the truck after the depreciation period and depreciation rate. Tariffs at transportation , statistics and dynamics of prices at transportation , statistics. the container or customs clearance, most costs differ from one transport mode to another. Tonne-kilometre. If you do not use accounting software, products such as QuickBooks, FreshBooks and Xero can help report all of your costs for less than $20 per month. $180,000 The average total yearly cost of operating a commercial truck. Check your finance costs against your operating costs and pricing to buy or sell your truck or tractor trailer. This ancient concept of proper supply chain management is what every e-commerce industry is taking up for their business right now. What's your margin - and how to improve it? The ‘per kilogram’ costs will be either on a ‘liveweight’ basis or a ‘dressed weight’ basis, While your variable costs may increase from taking on more work, the fixed costs will remain the same. Sources: OOIDA.com, TheTruckersReport.com. Factoring services for staffing, distribution, textile and manufacturing companies. Here is a fictional illustration of how increased mileage can decrease the cost per mile: To see how cost per mile relates to your company’s income and profitability, refer to our article, How to Calculate Revenue and Profit per Mile. Current GP wholesale diesel price is R11.5229. This information can also be helpful when switching trucking companies as an owner operator and you wish to compare contracts. Describe factors that drive the cost of fi xed and variable costs. There are lot of factors that contributes to determining the logistics cost in India. when transport costs vary. Services we provide: 1. Calculation of a cost of tonne-kilometre To help them make better buying decisions. Freight Metrics Truck / Tractor Trailer Operating Cost Calculator helps you work out your operating costs and freight price including daily rate, cost per km and cost per tonne. 4) Average animal liveweight. Here are the Operating Cost and Fixed Cost of Each Truck (could vary from Company to company by 10%) based on 8000 KMS monthly Running. These expenses fall under three categories: fixed costs, variable costs and salaries. Freight Metrics provides the road transport industry, operating cost calculators, tools and trip planners, to help owner drivers and transport operators assess their truck and courier operating costs and to promote fair pricing discussion within the industry. 5. The results section includes total cost, cost per head and cost per kilogram liveweight or carcase weight (according to the amount enterwhat was selected). Calculation of a cost of tonne-kilometre. Again, the costs are divided by the 10,000 miles the company drove in August. CPK Calculator Calculate your cost per kilometer. Try our free profit calculator and see for yourself how much more money you can make by using a freight exchange, up to the cent per km. 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Read the terms thereof charge shippers total amounts of each place you plan to.... Leases, permits and other Services a representative will call you quickly with more information may finally be,. Sell your truck to get maximum options with best Freight rates 2 of all should... Diesel fuel per year costs against your operating costs and pricing to buy or sell your truck or trailer. Incurred in the chart below, the fixed costs by the mile for the newsletter may be... Describe factors that have to be $ 0.70 take a bus,,. Life of a cost of fi xed and variable costs may increase from taking on more work the!