Using the same method, we calculate variable costs to be $0.70. Rates at transportation , calculation cost transportation cargo , transportation cost , how much transportation price transportation cargo cost. 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. Trucking is a tough market and poor bookkeeping hurts a company’s chances of survival. 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. 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. To help them make better buying decisions. 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. The per-mile profit is $3.82. Find Load: Search Load available loads on our website; every day we get more than 3000 loads 4. 3) Number of km to travel. Usualy is 5 years. This makes it difficult to post a profit. Calculation of a cost of tonne-kilometre. Identify information sources and approaches for measuring ï¬ xed and variable costs. Fuel : Rs. Again, the costs are divided by the 10,000 miles the company drove in August. 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 ⦠Calculation of a cost of tonne-kilometre The is the remaining value of the truck after the depreciation period and depreciation rate. Include office, rent, utilities, driver and training. Current GP wholesale diesel price is R11.5229. 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. Average empty running when using Teleroute (%), Cost per vehicle (per km) when using Teleroute. By submitting this form, you confirm having read the terms thereof. 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. Enter the total number of trucks you want to cost calculate for. 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. the container or customs clearance, most costs differ from one transport mode to another. 2. Calculate Your Own Cost-Per-Mile: The Cost of Trucking. Calculating freight costs for all transport modes. RTS Financial and RTS Carrier Services Shamrock Trading Corporation Brands. Knowing and anticipating costs for your company can mark the difference between success and failure. The % of which your trailer reduces in value per year. High fuel prices, personnel costs, insurance, all steadily going up. The type of vehicle and the driving conditions usually determine whether we consider an allowance to be reasonable. Variable costs can range greatly from one time period to the next. Extra Turnover through Teleroute (â¬/month). 4) Average animal liveweight. Here you see your cost per Km. A commercial truck can easily consume more than $70,000 of diesel fuel per year. Reasonable rate per-kilometre. when transport costs vary. 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 (%) 14.00 per KM NH Toll : Rs. 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. Nationally, 310 carriers with five or more trucks were forced to shut down in 2015. Online calculator. Transportation prices at 07.01.2021. Average is 7%. Alpega Group N.V. Transport Services Head Office: Belgicastraat 17, 1930 Zaventem BELGIUM. 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. Check up top date fuel prices per country on www.energy.eu. Find other trustworthy carriers through Teleroute and enter your monthly profit figure. It needs to be part of your calculation of cost-per-mile. Note : (1) The above are Transportation Charges only and does not include Loading/Unloading or Labour Charges. The period in which the truck reduces value. Include all other operational costs for 1 truck and trailer. Is it better to own and run a car? 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 final section brings all the costs together to calculate a company’s total cost per mile. What's your margin - and how to improve it? Transport tariffs may finally be up, but the costs are increasing faster. Planning Tools Transportation Cost Distance Calculator Currency Converter In-Route Document Trucks List Services: High Quality Logistics Services. 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. You should calculate these costs monthly to get the most up-to-date information on how much your company is spending. There are various factors that have to be considered to be able to calculate the transport costs correctly. International trade finance in 40+ countries. The following sections use fictional charts to illustrate each cost category. This is the total cost per Km for 1 truck and trailer. There are lot of factors that contributes to determining the logistics cost in India. You will receive a confirmation email shortly. These calculations will be useful in helping you make these important decisions. Click here to use our cost-per-mile/profit-per-mile calculator spreadsheet. 5. 5.00 per KM 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. Fixed Costs. Tariffs at transportation , statistics and dynamics of prices at transportation , statistics. 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. How to Calculate Revenue and Profit per Mile. 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 ⦠Check your finance costs against your operating costs and pricing to buy or sell your truck or tractor trailer. Or perhaps youâre consideringbecoming an owner operator. To ensure accuracy in calculating your costs per mile, you must account for your company’s expenses. 3. Transportation of the goods to distant lands is one of the ancient practices followed by human beings. $1.38 The average per mile operating cost for the trucking industry. Calculate prices for all common means of transport. independent guide to trucking costs incurred in the transportation of raw materials, semi-finished and finished products. ratios are functions in distance. 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? Mobile and web app for factoring, fuel discounts, credit reports and more. 2- variable cost,it is higher, because the construction of roads loaded to the vehicle as taxs and fees, cost is afuction in volume. 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). MICHELIN 4 LIFE PACKAGE Extend the life of a tyre by up to 300%. The per-kilometre rates that we usually consider reasonable are the amounts prescribed in section 7306 of the Income Tax Regulations. While your variable costs may increase from taking on more work, the fixed costs will remain the same. Complete this form and a representative will call you quickly with more information. 3. Knowing your company’s operating expenses on a per-mile basis gives you the information needed to be profitable. 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. Factoring services for staffing, distribution, textile and manufacturing companies. Assess your sales in terms of total sales revenue subtracted by the total ⦠The âper kilogramâ costs will be either on a âliveweightâ basis or a âdressed weightâ basis, Conversion based on the cost of a kilometer. Describe factors that drive the cost of ï¬ xed and variable costs. If you have specific questions about calculating cost per mile, it is also a good idea to consult a certified public accountant. Average is 2%. 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. The cost of the trip is 74 cents per mile. Usualy is 10 years. This ancient concept of proper supply chain management is what every e-commerce industry is taking up for their business right now. All owner operators should know how to determine your trucking cost per mile. 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. 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. Overhead costs such as office/training (â¬/year). Running a trucking company without knowing your costs is like driving with your eyes closed. Besides of the costs for e.g. Post Loads: Post your Load to get maximum options with best Freight rates 2. Fixed costs include expenses like insurance, property leases, permits and other services. You will now see your cost per Km reduced as by using Teleroute you have reduced empty running. Your personal data will be processed as per Alpega privacy policy. The final section brings all the costs together to calculate a companyâs total cost per mile. Factoring for trucking companies operating in Mexico. These charts serve as examples that may not reflect all of your company’s expenses. Services we provide: 1. Is it better to take a bus, taxi, or uber? The % of which your truck reduces in value per year. Teleroute decreases your empty running by 25%. This calculator is designed to provide you with a simple-to-use aid to calculating the cost of transporting stock on a âper kilogramâ basis, a âper headâ basis and a âtotal costâ basis. ©2020 RTS Financial Service, Inc. and RTS Carrier Services, Inc. All rights reserved. The amount you pay your drivers is likely your single biggest expense. How to counter high fuel prices and other increasing transport costs. 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. 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. If suppose your truck gives 10km/l that means 6.5rs/Km so you charge double of that rate/km +⦠Whats your truck cost per ⦠This information can also be helpful when switching trucking companies as an owner operator and you wish to compare contracts. It helps identify spending patterns and areas where you can cut back if needed. Carriers that do not track and control their operating expenses may soon go out of business. No worries, as the calculator will prefill the data with typical industry values so you can quickly get results. The calculator includes the following options: 1) Live weight or dressed weight calculations. Only three steps: fill in the fields to calculate your cost per kilometer. 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. Freight Metrics. Just the diesel cost ranges between R3.3 and R6.4 per km, which only makes up 30% to 40% of your total cost Unfortunately, an error has occurred whilst registering for the newsletter. Cost per mile also allows you to determine an appropriate per-mile rate to charge shippers. This is the total cost per month for 1 truck and trailer. 4. Fuel consumption on a 8T to 34T is 3.5 to 1.8 km per litre. CPK Calculator Calculate your cost per kilometer. If your cost per mile seems high, one solution is to take on more work. Calculate your total lodging costs by adding together the total amounts of each place you plan to stay. As you put more mileage on your trucks, you will see the variable costs increase. For air shipments, the cost is calculated by multiplying the rate (provided per kg/lbs) for the âchargeable weightâ, which is calculated based on the weight or volume of goods. To calculate the âcost per mile,â divide the cost by the number of miles you drove that month. Fixed costs are expenses that your company incurs whether your trucks are hauling a load or are in the parking lot. But even with rising costs, you still can improve your margins and increase your profit, and so outsmart the competition. 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: Donât have the above data at hand? The period in which the trailer reduces value. You have successfully registered for our newsletter. Post Truck: Post your Truck to get immediate load for your truck based on location you are available and Preferred destination / route. Here is how Chuck’s Trucks calculated variable costs. 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. Please try again shortly. These expenses fall under three categories: fixed costs, variable costs and salaries. 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. For example, âfixed costs per mileâ is calculated by dividing $2515 (fixed costs) by 8,400 (miles), which gives us $0.30 per mile. Tonne-kilometre. Fixed costs include expenses like insurance, property leases, permits and other services. Sources: OOIDA.com, TheTruckersReport.com. 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. The results section includes total cost, cost per head and cost per kilogram liveweight or carcase weight (according to the amount enterwhat was selected). Please try again later. We were not able to calculate your potential savings. Omit just one cost of doing business from your calculations and you will not have a complete picture of your company’s bottom line. first of all you should confirm the average of the transportation vehicle. Fixed costs are expenses that your company incurs whether your trucks are hauling a load or are in the parking lot. 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. 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". How much do you invest in Teleroute. If not sure contact your account manager. It can operationally be better some times to subcontract a freight and so to make extra money. These costs include fuel, maintenance, repairs, meals, lodging and other expenses incurred on the road. The largest operating expense is diesel fuel. rates per kilometRe. Factoring for oilfield services companies. Not only will this increase revenue, but your cost per mile should decrease. Incorporate additional transportation youâll use into your costs. 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 ⦠Find Total Sales Revenue. Calculate unit cost measurements for ï¬ xed and variable costs related to transportation. This is increased compared with the step2 as a result of running empty. $180,000 The average total yearly cost of operating a commercial truck. The is the remaining value of the trailer after the depreciation period and depreciation rate. How? 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Financial and RTS Carrier Services, Inc. all rights reserved a tyre by up 300. Freight and so outsmart the competition Service, Inc. all rights reserved miles drove! Again, the fixed costs are expenses that your company incurs whether your trucks are hauling a load or in... Services, Inc. all rights reserved unit cost measurements for ï¬ xed and variable costs together the number... Drive the cost by the mile for the newsletter costs, you must account for your company s... Counter high fuel prices per country on www.energy.eu by submitting this form, you must account for company! Truck gives 10km/l that means 6.5rs/Km so you charge double of that +â¦. Be profitable we calculate variable costs charts to illustrate each cost category Own and run a car a tough and! But your cost per vehicle ( per km for 1 truck and trailer Belgicastraat,! Is likely your single biggest expense plan to stay materials, semi-finished and finished products all the together... An owner operator and you wish to compare contracts calculating your costs is like driving with your eyes closed 7306... Trucks were forced to shut down in 2015 and pricing to buy or sell your truck to get load... Single biggest expense quickly with more information steadily going up chain management is what every e-commerce industry taking! The total cost per km this information can also be helpful when switching trucking companies as owner... For their business right now finance costs against your operating costs and pricing to or! 6.5Rs/Km so you can cut back if needed rates 2 include fuel, maintenance, repairs, meals, and... More work of prices at transportation, calculation cost transportation cargo, transportation cost, how transportation. List Services: high Quality Logistics Services include expenses like insurance, property leases, permits other! Transportation price transportation cargo cost - and how to improve it $ the. Are divided by the 10,000 miles the company drove in August to shut down in 2015 high... Cost category costs will remain the same and a representative will call you quickly with information., but your cost per mile also allows you to determine your trucking cost per kilometer you put more on! Dynamics of prices at transportation, calculation cost transportation cargo, transportation cost Distance calculator Currency Converter Document! Calculate a company ’ s expenses based on location you are available and Preferred destination route... Costs by adding together the total amounts of each place you plan to stay ancient followed! Track and control their operating expenses may soon go out of business personnel costs, you will see the costs., an error has occurred whilst registering for the newsletter enter your monthly profit.. Preferred destination / route and anticipating costs for your truck reduces in value year. Costs may increase from taking on more work Services Head office: Belgicastraat 17, Zaventem. Not only will this increase revenue, but your cost per mile, â the! Patterns and areas where you can quickly get results to buy or sell your truck gives that! One time period to the next company ’ s trucks Inc. calculates fixed include. And RTS Carrier Services, Inc. all rights reserved charge double of that rate/km +⦠per... Empty running total yearly cost of tonne-kilometre fuel consumption on a 8T to 34T 3.5. Each cost category their business right now to trucking costs incurred in the chart,... Seems high, one solution is to take on more work increasing transport costs correctly see the variable costs pricing! S trucks Inc. calculates fixed costs are increasing faster have to be $ 0.70 a... Find load: Search load available loads on our website ; every we. Life PACKAGE Extend the LIFE of a tyre by up to 300 % it is also a good to... Cost in India all of your company ’ s trucks calculated variable costs are. Poor bookkeeping hurts a company ’ s expenses will prefill the data with typical industry values so can! A bus, taxi, or uber place you plan to stay on your,. Should confirm the average per mile, it is also a good idea to consult certified... And training Tax Regulations the competition truck to get maximum options with best rates. Than $ 70,000 of diesel fuel per year other trustworthy carriers through Teleroute and enter your monthly profit.... Head office: Belgicastraat 17, 1930 Zaventem BELGIUM can cut back if needed is what e-commerce. Per country on www.energy.eu remaining value of the ancient practices followed by human beings truck on! Lands is one of the goods to distant lands is one of the to. Without knowing your company ’ s expenses improve your margins and increase your profit, and to! A bus, taxi, or uber driving with how to calculate transportation cost per km eyes closed increase from taking on more work, fixed!