Airplane flying over container port

Oct 27

What Impacts The Cost Of Freights

From modes of transportation to fees from Calgary logistic companies, the cost of your freight transportation will vary greatly. Having key insider information on the typical, and unexpected factors that can impact the final cost is important when it comes to freight transportation. 

The Factors That Influence Freight Costs 

Standard fees 

When transporting goods you can expect to be charged for the following: 

  • The travel distance (as this consumes fuel)
  • The quantity and volume of your cargo (naturally, the larger your product, the room it takes, the more it will cost you) 
  • The oversized or dangerous nature of your goods (as more protection is needed) 

Mode of transportation

There are three main modes of transportation: air, land and sea. 

It goes without saying that air is the most expensive, as a plane covers land quicker than other modes. Depending on where you send your products, particularly internationally, it might be the only mode that you can use. However, since it only allows for the transport of a limited load, it is not suitable for very heavy or bulky goods.

Trucks are the cheapest options, especially when it comes to cross border transportation. However, driving long distances can be quite expensive, due to increased fuel consumption. Therefore, rail or air is better. 

Cargo Transport Long Haul Semi Truck On a Rural Western USA Interstate Highway Delivering During Pandemic

Sea means using a freight ship to get your products to your location. Maritime transport offers an advantageous quantity and price ratio, but the insurance costs applied to goods are still high. Depending on where you are transporting your items, freight might be the most affordable option. It is though, the slowest. 

The fees of the freight forwarder in Calgary

Freight forwarders in Calgary charge a small fee for their work in handling your products and seeing that it is transported to your destination. Depending on the product, size and so forth, your fee might vary. 

Government regulation

Depending on where you are transporting your products, government regulation may directly impact on the freight costs. It could be due to specific products, Emissions Trading Schemes or tariff taxes on specific industries. Governments might also set maximum driving hours for commercial operators, so timeframe might be impacted. 

Geopolitical events

Unforseen political events can cause prices to jump higher. An example would be the dangers of pirates and rogue governments in third world countries. Since added protection would be required, it means that the cost of the freight will increase, due to changing shipping routes, paying higher insurance premiums and security. 

 

 Ocean-Air Freight Ltd is your premier logistics and freight forwarder in Calgary. Since 1990, we have been providing individuals and companies with top-quality shipping and freight forwarding needs. We pride ourselves on our professionalism, experience, and adaptability. We offer a range of services including air, ocean and surface freight for international, cross-border and domestic needs, cargo insurance, import and export needs, documentation, etc. From Europe to North America, we can handle all your deliveries and freight requirements. For the best freight forwarder in Edmonton, Calgary and Saskatoon, contact our logistics company in Calgary today.

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