Last Updated on July 17, 2021 by MoneyVisual
Organizations have started working with global businesses due to the advent of globalization. The system of global trade makes this a reality by helping companies meet their prime goals which include subsistence, survival & growth. But, all of this comes at a cost & a major part of it is the Freight Cost.
The raw materials which are supposed to be brought in from different geographies to making the finished products and sending them to respective markets, a company will have to bear the labor & transportation costs.
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There are several agencies that help in giving assistance to businesses for documentation, packing & other different freight-related activities. It helps to have knowledge about freight charges, & how to calculate these charges as it adds to the overall expenditure of the firm.
Find out how an instant freight calculator helps traders to plan their finances better!
It is the charge a firm has to bear for the movement of the products and raw materials/ processing material from one destination to another. These costs are inclusive of palletizing, packing of the goods, loading, and unloading of the goods, documentation charges, also the insurance costs.
The freight charges are quite dynamic as they depend on multiple variables. Majorly the freight charges depend on the following factors-
- The Weight of the cargo: The weight or density of the cargo/ goods also has a big role to play in the calculation of the freight charges. Many shipment agencies consider the weight as well as the volume of the cargo while calculating the charges which can be calculated using a freight calculator online
- Mode of transport: The mode of transportation of the cargo can vary from trucks, trains, ships to airplanes. Every mode of transport has a different cost involved since the packing requirements, insurance types, etc. varies from one channel of transport to another
- Size of the cargo: Size also plays an important role in the calculation of the freight cost along with the weight of the cargo. One has to choose the mode of transportation as per the size of the cargo & this directly affects the cost one has to bear
- Points of Pickup and Delivery: Another important factor that would determine the freight charges are the points of pickup & delivery of the cargo. Also, the availability of any mode of transportation at a particular place determines the cost attached to it. Different states will have different laws & taxes levied on different modes of transportation framed as per the Federal government and the State government
- The distance of the transportation route: Lastly, distance plays a crucial role in determining the most suitable mode of transportation as not all modes of transportation are the best choice for some distances. For example, one will never opt for a truck to transport goods extremely far as one may incur a greater cost
Keeping the above pointers in mind it becomes extremely important to select the right freight transportation channel and make sure we have complete visibility into the freight transportation charges.
With the advent of technology, calculating freight charges has become easier than before as there are online tools available for the same as the one in this link: https://www.cogoport.com/rate-discovery. These tools make it easy for the traders to get visibility into the freight charges they are eventually going to pay for shipping their goods.
Advantages of a Freight Calculator
Following are the common advantages of using a freight calculator that have helped traders plan their finances better:
- Instant freight rate calculation helps traders plan their finances better as it helps them analyze & compare different vendors & select the one that suits their needs and budget. One can analyze multiple shipment methods & prepare themselves for the cost they will bear by setting aside those expenses accordingly
- Instant calculation of freight means a lot of saving in terms of time as you can input some key information and get results instantly. Freight calculator is an accurate method & available 24*7 for use
- Freight Calculator is hassle-free in terms of its usage as it’s designed for simplicity in operations & the information needed is also quite simple including mode of transportation, pickup, delivery locations, size of shipment, etc
- One saves a lot of physical effort in visiting different vendor offices, negotiating & discussing business requirements multiple times as this same exercise can now be done by inputting basic information & get results in a matter of a few minutes.
- One gets a breakdown of all the costs & one can see multiple quotes in a matter of seconds to enable decision making accordingly
- A freight calculator will help you with complete transparency with regards to all the costs involved and give no room for hidden costs. The freight calculator helps in calculating all the costs involved that would be incurred for a freight shipment, & hence provides an accurate estimate
Traders in businesses want to select the best freight rate possible, which is now possible due to the advent of technology. The platform should also help them to make the most of their processes and eventually result in lower costs in the long run.