Freight costs

Freight costs in land transportation depend on a variety of factors that affect the type of transport, the distance traveled and other operational aspects. Here are the most important influencing factors:

1. Distance and route

• Route length: The longer the route, the higher the freight costs, as fuel consumption, time and wear and tear on the vehicle increase.
• Road and traffic conditions: Tolls, road conditions or roadworks on the route can increase costs as they can cause detours or longer travel times.

2. Type of freight

• Weight and volume: The heavier or bulkier a load is, the higher the costs. The vehicle has limited capacity, so transport companies calculate costs based on space or weight consumption.
• Special requirements: Freight that requires special conditions, such as refrigeration, hazardous goods or oversized goods, often entails additional costs.

3. Means of transportation and vehicle type

• Vehicle type: Whether a normal truck, a refrigerated vehicle or a special vehicle is required has a significant impact on the costs.
• Fuel consumption: Heavier or older vehicles consume more fuel, which can affect transportation costs.

4. Tolls and road usage charges

• In many countries there are charges for the use of highways or certain road sections, which are included in the freight costs.

5. Fuel prices

• Fluctuations in fuel prices have a direct impact on freight costs. Many companies use fuel surcharges to react to price fluctuations.

6. Transportation time and urgency

• Express deliveries: If the delivery has to be made particularly quickly, the costs increase due to the greater effort involved.
• Delivery windows: Specific delivery times or tight time windows may require additional resources and increase costs.

7. Capacity utilization and returns

• If the transport vehicle runs empty on the return journey (empty runs), this can increase the costs for the delivery. Good capacity utilization, i.e. when outward and return journeys can be used, tends to reduce costs.

8. Insurances

• Cargo insurance for the transportation of goods (especially valuable or risky cargo) can account for a significant portion of freight costs.

9. Labor costs

• Drivers’ wages, bonuses for overtime, weekend, or night work can have a significant impact on transportation costs.

10 Market conditions and competition

• The demand for transportation services in a particular region or on a particular route can influence prices. In a highly competitive market, prices tend to fall, while they rise in times of high demand for cargo space or short supply. Seasonal changes in particular have a major impact on freight prices.

11. Customs and other fees

• In cross-border land transportation, customs duties or other administrative costs (such as customs duties, taxes or border controls) can increase freight costs.

Overall, freight costs in land transportation reflect a combination of these factors. Companies optimize their transports in order to reduce costs, for example by optimizing routes, avoiding empty runs or using cost-efficient vehicles.