# Price of goods transport: how to choose?

In freight transport, the price varies according to the mode of shipment chosen. You want to choose the most suitable solution for transporting your goods at the best rates? Several options are available to you which respect the good delivery times and the security of your goods. So what type of goods transport is needed, and at what cost?

Transport companies evaluate the price of goods transport by mode of transportation and by two types of taxes: tax by weight or flat tax.

### Weight tax:

It is a fictitious weight that is determined to calculate the freight price of the commodity. This fictitious or “taxable” weight is calculated on the ratio weight (ton) / volume (m3). But the basis of this calculation is different depending on the mode of transport:

• #### Calculation of the price of air transport of goods

Especially used for rapidly perishable products, this type of transport is fast and helps not to break the cold chain. But it is expensive compared to other modes of transport: high tariffs, explained in part by the rise in the fuel tax. Thus, the import price per kilo is 114 € to 122 € export. This explains that this mode of transport still represents only 2% of the total transport of goods. To know the weight tax applicable to the transport of your goods, you can proceed to the calculation yourself by taking a ratio weight / volume of 1 for 6.
Example: 6 tonnes of goods in real weight representing a volume of 18 m3 corresponds to 3 “taxable” tonnes of goods (18 m3 / 6 Actual tonnes = 3 tonnes “taxable”). It is then sufficient to multiply this fictitious weight by the tariff per ton of the air carrier.
According to the airline, additional charges may be added to the total cost of transportation.

• #### Calculation of the price of goods transport by road

The price of road transport is set according to the weight, the nature of the goods and the distance to be covered. To calculate the rate of your freight transport, use the same principle of calculation as for air transport taking a weight / volume ratio of 1 to 3. And multiply it by the tariff of the road transport company. The competition is very strong on the road network, which generates fairly variable rates from one company to another. If you observe very low rates, do not conclude that the service offered is of lower quality. Some companies consolidate goods, which reduces transportation costs.

• #### Calculation of the shipping price of goods

It is mainly used in the transport of raw materials (oil, coal, iron ore, cereals …) and for the transport of already packaged products (container, pallets, drums …). The price of sea transport applied to the goods meets a rate base of 1 ton for 1m3 “to the advantage of the carrier”, which means that if the weight exceeds the volume or vice versa, the calculation will be done on the basis of the highest value (weight or volume). Weighted freight rates are often synonymous with cheap carriers. But this mode of transport remains slower than the others.

• #### Calculation of freight rail freight price

Rail traffic is perfect for transporting goods with distances greater than 100 km. Fret SNCF has become a major freight carrier in Europe (2nd European rail carrier). But for international transport, we must take into account different pricing rules from one country to another. This makes the price transport package very variable. Rates are also defined according to the weight of the goods to be shipped and the distance to be traveled.

### Flat fee:

The flat tax applies to the transport of goods already packaged as the container. The transport price of the container is easy to calculate since the tax applies “to the box” (container, truck or wagon). As with the weight tax, the flat rate takes into account the nature of the goods to be transported. Moreover, it makes it possible to compare the prices of the carriers of the different companies more simply.