Freight tables and freight rates

The now unmanageable number of different freight tables and tariffs creates uncertainty for shippers and forwarders alike. This is particularly true in the context of a heterogeneous shipping structure, i.e. when packaged goods are shipped regionally, nationally or internationally. For both parties, the negotiated freight rates must be sustainable.

Negotiate freight tables and freight rates correctly

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Negotiating freight rates – typical questions:

For consignors

• Are you overpaying for your transport?
• Are the existing service provider’s rates transparent and logical?
• Are the correct cost drivers included in the freight matrices? (km, postcode areas, postcode areas, kg, pallets, parking spaces, full truck…,)
• Do the negotiated freight matrices still fit the current shipping structure?
• How would changes in the shipping structure affect the expected transport costs?
• When using multiple shippers: Is the allocation of the transport task between the service providers optimal?
• How do I successfully tender my transport job?
• Is everything invoiced as agreed?

For shippers

• Am I competitive with my rates?
• How do I convert my transport calculation into the form required by the shipper?
• At what price can I accept an advertised shipment on a long-term basis?
• How would changes in the shipper’s shipping structure affect the shipper’s expected transportation costs, and do the agreed freight rates cover any additional costs?
• How can cost increases (labour, diesel, tolls) be reflected in freight rates?

Freight matrix / benchmarking service offering

For consignors and shippers

• Benchmarking of transport costs
• Verification of freight matrices (in terms of transparency, traceability)
• Simulation of transport costs based on different freight matrices and actual order data
• Customer cost breakdown according to the tonne-kilometre principle
• Identification of optimal cost drivers through simulation
• Preparation of tender documents
• Verification of the shipper’s actual transport bill
• Development of freight tables
• Verification of freight invoices
• Preparation of tender documents

When we tender for transport services, we prepare the tender documents, select suitable carriers and simulate the expected costs using the freight tables and order data. The total cost to a company of using different freight tables can be simulated by storing real order data. In this way, it is possible to determine which of the carriers contacted beforehand is currently offering the best price for the transport task. The results can then be used for benchmarking. The calculated costs are compared with the industry average. By varying the order data, it is also possible to determine in advance how the transport costs would develop with different service providers.

Development of cost-based freight tables

Conversely, freight tables can be developed based on the costs associated with a delivery task as determined by route planning software. These can then be used in tenders, for example, for a service provider to submit an offer.

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