Cost Of Moving Cargo Essay

817 Words4 Pages
Moving of cargo can be an expensive exercise, which requires clear thoughts and thinking to ensure no mistakes are made using the wrong type of transport, using the best company specially when dealing with specialised cargo etc. We discussed the “Cost of Moving Cargo in Unit 3 2.7, but here we will go into more detail on this topic. The cost of moving the goods or product from the seller ‘s premises (the origin) to the buyers premises (the destination) might sound like an easy process but there are lots of factors and costs involved that need to be considered. All the cost need to be totalled and added to the product cost to calculate the total landed cost. Landed cost is the total cost purchasing the product plus all charges to move it to…show more content…
Freight is the amount that is charged for cargo that is delivered and there are many factors taken into account when determining the freight charges. These factors include the how the cargo will be transported, what the actual cargo is, what is the distance between locations and the bulk weight. Also, the mode of transportation used to transport the goods will be taken into consideration when it comes to the freight charges. Trucks are highway bound and may be less expensive but needless to say, this mode of transportation is limited to whatever mainland it is on. One mode of transport being ignored in modern trading is trains. Trains still feature quite successfully in Europe and the USA but to a lesser extent in South Africa and Africa. Shipping companies using container or bulk vessel are utilized for overseas freight shipments, or imports, when it is most often cheaper than using air travel. The freight class will determine the freight charge. There are eighteen classes ranging from 50-500. To get the right pricing you need to know the weigh of the package including the contents as well as the dimension (measuring the length, width and height). This will help the freight company to determine your freight class. Can you define the Inland Freight in the example
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