Guide · Freight cost
Freight cost per ton, per tonne-km and per case: how to calculate it.
Freight rate per truck tells you what you paid. Cost per ton, per tonne-km and per case tells you whether you paid well, and which lanes and plants to fix.
The formulas
| Measure | Formula | Use it for |
|---|---|---|
| Cost per trip | Truck freight + loading/unloading + detention + other charges | The real cost of one movement |
| Cost per ton | Total freight cost ÷ tonnes delivered | Comparing plants, RDCs and products |
| Cost per tonne-km | Total freight cost ÷ (tonnes × km) | Comparing lanes of different lengths and carriers |
| Cost per case | Total freight cost ÷ cases delivered | Product and customer profitability |
| Freight as % of sales | Total freight cost ÷ sales value × 100 | Management view over time |
Worked example (illustrative)
A 20-tonne truck carries 18 tonnes over 600 km for ₹45,000, with ₹2,000 of detention.
- Cost per trip = 45,000 + 2,000 = ₹47,000.
- Cost per ton = 47,000 ÷ 18 = ₹2,611.
- Cost per tonne-km = 47,000 ÷ (18 × 600) = ₹4.35.
- If the truck had been filled to 20 tonnes at the same cost, cost per ton would fall to ₹2,350, about 10% lower.
Costs people forget
- Detention at plants and customers.
- Empty kilometres and return trips paid for.
- Loading, unloading and multi-point charges.
- Claims for damage and shortage.
- Expedited trucks when a planned one did not report.
How manufacturers bring it down
- Fill trucks better with load planning and part-load consolidation.
- Cut plant turnaround time to reduce detention.
- Hold carriers to placement so fewer trucks are expedited.
- Allocate business to carriers by a fair scorecard, not only the lowest rate.
How SCM for Manufacturers tracks it
SCM for Manufacturers seeds every trip from the ERP dispatch sheet with promise date and route distance, adds gate dwell, detention and delay ownership, and reports freight by plant, lane and carrier, along with freight CO₂e per leg on the same tonne-km basis.
Questions
How is freight cost per ton calculated?
Divide the total freight cost of the movement, including detention and other charges, by the tonnes delivered.
What is cost per tonne-km?
Total freight cost divided by tonnes multiplied by kilometres. It lets you compare lanes of different distances.
Why is cost per ton better than freight per truck?
Because it shows how well each truck was used. A cheap truck sent half empty can cost more per ton than an expensive full one.
See it on your own data. SCM for Manufacturers puts the plant gate, carriers, RDC stock, cold chain and OTIF on one control tower. Book a 30-minute working session with an engineer.