Free transport cost calculator

Fuel is the biggest cost of running a transport business. It can account for up to 40% of total company expenses. Every logistician or owner of such a company is aware that the profitability of the service provided depends on a number of factors, some of which you may hardly think about on a daily basis.

In such a case, it is useful to summarize the total cost of transport, including not only employees, fuel and vehicle operating costs, but also more detailed costs associated with running the business. Although costs across trucking companies are similar, there is not one universal formula for calculating transport costs. Each company takes different parameters into account, so it is worth choosing such a road transport calculator that best suits the needs of our business.

How to calculate transport costs?

The transport cost calculator below will help you calculate the average rate for carrying out orders per kilometer or mile. To calculate the transport rate, you need to fill in the fields related to expenses. If you have any comments or ideas for improving the calculator, please contact us.

Road transport is the most popular method of carrying goods in Europe, while its use continues to grow. According to Eurostat, 1,145 billion tkm of road freight transport was carried in the EU in 2021, which is an increase by 6.8% compared to 2020. Furthermore, Germany, France, Spain, Poland and Italy accounted for almost two-thirds of the total tonnage transported in the EU.

Challenges of the transport industry

Despite its constant growth, the road transport industry faces many challenges. On the one hand, transport companies are seeing high demand for their services. The increased popularity of online shopping resulted in the growth of the e-commerce industry and a greater demand for the transportation of goods. On the other hand, many companies have to deal with the consequences of the pandemic, war and rising inflation, while the Mobility Package regulations coming into force do not help the transport business.

One of the most evident problems is the shortage of professional drivers, which is something the industry has talked about for a long time. The problem was intensified by the war in Ukraine, as a large number of drivers carrying out transport across Europe had to give up their jobs and leave to defend their country.
Another point of concern for carriers is the Mobility Package. The provisions it contains aim to regulate several areas concerning transport companies, such as work and breaks for drivers. It requires, in particular, that the driver should return to the country in which he or she lives at least once every four weeks. Due to the requirement to pay full salaries to delegated workers, labour costs are to increase, which will further translate into even greater expenses for carriers.

Current fuel prices are another big problem deepening the crisis for transport companies. As these can make up as much as 40% of a company’s total expenditure, it will be necessary for many businesses to significantly cut other expenses while maintaining a high quality of service.

Transport companies are already seeking methods to generate more savings.

What determines transport costs and how can they be reduced?

Many elements influence transport costs. Fuel is the main expense, but in addition to this, money is needed for staff salaries, purchase and maintenance of the vehicle fleet, taxes and insurance, as well as tolls. Many charges can be minimised without losing the quality of the service provided.

First of all, when it comes to reducing costs, it is worth considering the optimisation of driving routes and the style of driving vehicles, which can translate into lower fuel consumption. A regular check of the technical condition of the vehicles and early detection of any faults may be helpful as well.

When pursuing savings, it may also be useful to look at choosing the right vehicle, which is particularly important when transporting general cargo. A more optimal distribution of pallets on the semi-trailer may let the freight fit into less space than originally assumed.

Possible fines are another matter. The costs are large and can be painful. When planning loading, it is good to consider both the permitted gross weight and axle loads to avoid penalties.

Reaching out to new technologies is one of the ways to generate more savings. Telematics systems, TMS, route planners or loading planning applications can help optimise processes and, therefore, reduce costs.