Before making any purchase, many of us think, “Do I really need it — or not? Maybe I'll find a cheaper option... ” In such cases, we often take additional risks - sometimes a success story happens, but sometimes the stingy pays twice... or five times.
In the transport and logistics sector, customers sometimes set price as their only condition choosing a logistics partner. In these cases it's possible that international cargo transportation doesn't take place as expected - the cargo could be stolen or damaged by unsuitable trailer or the delivery time could be exceeded.
The transport and logistics company Vervo Ltd. has compiled information - what is the price formula and why the price tends to differ on the same route. By knowing the specifics of the industry and how the price of freight transport is formed, you can prevent unpleasant situations and be able to assess the reliability of the logistics company.
Take into account that the price formula contains several variables, it is almost impossible to determine the exact price, so we remind you - you can find out the exact price for freight transportation from our logistics managers (
Formula to follow:
- Type of cargo
This is one of the factors impacting the price of freight. International cargo transport for goods such as wooden pallets or lumber will cost less than similar freight, for example, for fragile goods with a temperature regime (chemical reagents). Prices will also differ for dangerous goods (ADR) and bulky goods, where both situations require specific knowledge, different route requirements, additional documentation, and possibly more competent persons involved.
- Cargo size
This section includes the weight and the size of the load (height, width, length). What is interesting - lighter cargo does not always mean cheaper transportation: if the cargo is large, it may cost more than heavier and smaller cargo. In the case of groupage cargo (LTL), the loading meter (LDM) is also measured, which indicates the amount of load that can be loaded per meter by the trailer.
- Type of transport
Slightly simpler here - road freight transport is the most optimal choice if the distance between loading and unloading places is not big (for example, within the borders of Europe and the CIS countries). It would be more advantageous to choose sea freight to and from China or the United States. A slightly more expensive but faster option is rail freight, while express freight can be provided by air freight, which is the most expensive of all modes of transportation. Transport prices are also affected by current demand and fuel prices.
- Delivery route
It is possible that someone thinks that international freight transport from point A to point B costs the same as the return journey (from B to A). This is not true at all, as the price of freight is based on the popularity of the route, the direction, the distance, the complexity (including the weather) and the season.
- Other factors
This section includes other charges such as licenses, permits, customs formalities, as well as optional services: cargo insurance, cargo tracking and warehousing services. And, of course, just as you get paid for your work, this section also includes the salary of a truck driver, a logistics manager who has many years of experience, knowledge and is able to organize any type of freight transportation for companies or individuals.
Transport and logistics company Vervo Ltd. has proven itself as a reliable logistics partner - both for companies and individuals, providing high-quality international cargo transportation since 2008. Our logistics managers are knowledgeable in all matters and are able to deal with various non-standard situations.
Choosing Vervo as your logistics partner is an investment in the future, as we provide a full range of transport and logistics services. We will find the most suitable mode of transport, warehouse and other solutions, taking into account the type of cargo and your wishes. In the meantime, you can develop your business by promoting cooperation with new import and export partners.
We are for long-term cooperation! Write us an e-mail:
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