What is cost per ton-mile?

What is cost per ton-mile?

Definition. Measures the average amount of money spent per one mile of distance traveled, in order to ship to a customer a ton of purchased merchandise.

What is the average freight cost per mile?

Here are the current rates for the most popular freight truck types: Overall average van rates vary from $2.30 – 2.86 per mile. Reefer rates are averaging $3.19 per mile, with the lowest rates being the Northeast at $2.47 per mile. Average flatbed rates average at $3.14 per mile.

How is transportation cost calculated?

The transportation expenses will be calculated either by volume or weight of the cargo.

1. Weight/Mesurement (W/M) W/M is a common phrase used in logistics.
2. Breakpoint Calculation.
3. Sea Freight Rates.
4. Terminal Handling Charges.
5. Delivery.
6. Drop Off Costs.
7. Costs of Customs Clearance.
8. Dimensional weight air freight.

How do you calculate revenue per ton-mile?

Understanding Revenue Ton Miles This metric is calculated by multiplying the shipment’s weight in tons by the number of miles that it is transported. To avoid posting a loss, a company must be able to record a profit for every mile on cargo that is shipped.

How is a unit of truck freight usually rated?

LTL freight rates are based on the weight of the shipment, or the number of pallets it is shipped on. Weight-based rates are structured so that the more a shipment weighs the less you pay per hundred pounds. They are stated in dollars per hundred pounds (a.k.a. CWT or hundred weight).

Which transportation mode has the lowest cost per ton-mile shipped?

Rail is considered one of the most cost effective modes of transportation, especially for large volumes traveling long distances. Due to its ability to move major quantities at one time, rail has a lower cost-per-ton-mile (the cost of moving one ton one mile) than truck.

What do trucking companies charge per mile?

The latest data from the National Private Truck Council (NPTC) says the average trucking cost per mile in the U.S. for private fleets is $2.90. So, if one of your trucks drove 100,000 miles last year, you spent $290,000 to keep that single truck on the road.

What are the 4 basic costs of transportation?

In freight, the basic costs you’ll get billed for include these four items:

• Line haul.
• Pickup and delivery.
• Terminal handling.
• Billing and collecting.

What are transport costs?

Key Takeaways. Transportation expenses are a subset of travel expenses that refer specifically to the cost of business transportation by car, plane, train, etc. Expenses such as fuel, parking fees, lodging, meals, and telephone charges incurred by employees can be claimed as transportation expenses.

How do I calculate my trucks profit per mile?

Subtracting cost per mile from revenue per mile will determine the net profit (or loss) of every mile your trucks drive. Accounting software such as QuickBooks, FreshBooks and Xero can help you make these calculations for less than $20 per month.

How do you calculate truck loads?

Trucking rates are calculated on a per-mile basis. First, take the mileage between the starting and destination points. Then divide the total rate by the number of miles between destinations to get your trucking freight rate.

How do you calculate ton miles?

ton-mile in the US: 1 ton-mile * ( 0.907185 t / short ton) * ( 1.609344 km / mile ) = 1.460 tkm kilometre-tonne (unit: kmt) – the transportation of one tonne over one kilometre [4] [5] Usage [ edit ]

How many miles are in a ton?

One ton-mile is the equivalent of shipping one ton of product, one mile. One ton-mile is the equivalent of shipping one gallon of milk about 225 miles. Importing a piece of furniture that weighs 100 lbs. from China to Seattle incurs over 300 ton-miles. 562 billion ton-miles were incurred in the shipment of coal in the US in 2002 alone.

How much do you charge per mile?

The rate is set each year by the General Services Administration (GSA) based on research conducted by an independent consulting firm regarding current costs for utilizing a vehicle. For 2021, the Standard Mileage Rate is set at 56 cents per mile traveled (down from 57.5 cents per mile for 2020). 1

How much does each mile cost me?

The math is simple: $52,440.37 / 31,307 miles, which equals $1.67 per mile. This number will get you close to your actual cost-per-mile, but it is not exact. The biggest reasons being: Some expenses like lumper fees are not true expenses, because they get reimbursed.