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What are the main factors affecting logistics transportation cost
TIME：2019-01-29 READING QUANTITY：759
Transportation costs are mainly affected by the following factors:
1. Loading capacity
The reason why cargo loading affects transportation cost is that, like many other logistics activities, economies of scale exist in most transportation activities.
2. Transport distance
Transport distance is the main factor affecting transport costs, because it directly affects the variable costs of labor, fuel and maintenance.
3. Loading capacity
Loading capacity is a factor that refers to the specific size of the product and its impact on the degree of space utilization of transport vehicles (railway vehicles, trailers or containers).
Owing to the peculiar size and shape of some products, as well as the characteristics of overweight or super-long, they usually can not be loaded well, which wastes the space of transportation.
Loading capacity is also affected by the scale of shipment. Large quantities of products are often nested and easy to load, while small quantities of products may be difficult to load.
4. Density of cargo
The density of cargo includes weight and space factors. Since the actual cost of labor and fuel consumed by transport vehicles is mainly not affected by weight, the higher the density of goods, the corresponding fixed transport costs can be allocated to the increased weight, so that these products bear the lowest transport costs per unit weight.
Generally speaking, logistics managers will try to increase the density of goods in order to make better use of the volume of trailers, so that trailers can load more goods.
5. Responsibility
Liability is mainly related to the risk of damage to goods and the accident of claim.
The carrier has to insure the insurance company to prevent possible claims, otherwise it may be liable for any possible damage.
The shipper can reduce the risk by improving the protective packaging, or by reducing the possibility of loss and damage of goods, and ultimately reduce the transportation cost.
6. Handling
Transportation of trucks, trains or ships may require special handling equipment.
In addition, the actual grouping of products in transportation and storage (e.g. strapping, packing or palletizing) can also affect the cost of handling.
7. Transportation supply and demand factors
The market factors of transportation supply and demand, such as the optimum transport channel flow and the equilibrium of transport channel flow, also affect transportation cost. Ideally, it is "balanced" transportation, that is, the two ends of the transport channel flow is the most equal.
However, due to the unbalanced demand between manufacturing and consumption locations, the situation of equal flow at both ends of the channel is rare.
1. Loading capacity
The reason why cargo loading affects transportation cost is that, like many other logistics activities, economies of scale exist in most transportation activities.
2. Transport distance
Transport distance is the main factor affecting transport costs, because it directly affects the variable costs of labor, fuel and maintenance.
3. Loading capacity
Loading capacity is a factor that refers to the specific size of the product and its impact on the degree of space utilization of transport vehicles (railway vehicles, trailers or containers).
Owing to the peculiar size and shape of some products, as well as the characteristics of overweight or super-long, they usually can not be loaded well, which wastes the space of transportation.
Loading capacity is also affected by the scale of shipment. Large quantities of products are often nested and easy to load, while small quantities of products may be difficult to load.
4. Density of cargo
The density of cargo includes weight and space factors. Since the actual cost of labor and fuel consumed by transport vehicles is mainly not affected by weight, the higher the density of goods, the corresponding fixed transport costs can be allocated to the increased weight, so that these products bear the lowest transport costs per unit weight.
Generally speaking, logistics managers will try to increase the density of goods in order to make better use of the volume of trailers, so that trailers can load more goods.
5. Responsibility
Liability is mainly related to the risk of damage to goods and the accident of claim.
The carrier has to insure the insurance company to prevent possible claims, otherwise it may be liable for any possible damage.
The shipper can reduce the risk by improving the protective packaging, or by reducing the possibility of loss and damage of goods, and ultimately reduce the transportation cost.
6. Handling
Transportation of trucks, trains or ships may require special handling equipment.
In addition, the actual grouping of products in transportation and storage (e.g. strapping, packing or palletizing) can also affect the cost of handling.
7. Transportation supply and demand factors
The market factors of transportation supply and demand, such as the optimum transport channel flow and the equilibrium of transport channel flow, also affect transportation cost. Ideally, it is "balanced" transportation, that is, the two ends of the transport channel flow is the most equal.
However, due to the unbalanced demand between manufacturing and consumption locations, the situation of equal flow at both ends of the channel is rare.
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