The cost structure in national freight is a topic of extreme relevance. This becomes even more crucial in the road freight sector, as it is the most widely used mode of transportation in Brazil. Various elements contribute to the cost structure in road freight, from basic inputs such as fuel and vehicle maintenance to factors like fluctuations in oil prices and political instabilities.
In this context, understanding the cost structure in national road freight is essential for companies in the sector, logistics managers, and others involved in the supply chain. In this article, we will discuss the issue of cost structure in national road freight, practiced in the movement of goods on Brazilian roads and highways. Continue reading to discover the importance of the road transportation mode for Brazilian logistics and get tips for quoting road freight!
The importance of the road transportation mode for Brazilian logistics
Since the 19th century, the first Brazilian highways emerged, fostering national development. After all, road transportation became the primary means of distribution for our production. According to data from the National Land Transportation Agency (ANTT), road transportation became highly significant for the national economy. The movement of goods on roads constitutes more than 60% of the total volume, playing a significant role in the national GDP.
Moreover, Brazil is one of the largest countries globally, with an intercontinental land area of 8,510,000 km2 and a total road network of 1.7 million kilometers, of which 213,000 km are paved, facilitating various routes for the national fleet. The road transportation mode is characterized as the primary means of transportation for the Brazilian logistics system. Its advantages include easy access to remote regions, efficient optimization of goods circulation in urban centers, flexibility in routes, and less handling of products until reaching their final destination.
Formation of prices in national road freight
It is known that ANTT establishes a price table to ensure fair national freight charges for everyone. However, in most cases, road transportation costs are practiced differently, as several essential factors influence the amount charged by transportation companies. However, the factors influencing the pricing of national freight include the type of cargo, the availability of logistics providers on the route, the weight and size of the cargo, tolls, minimum fare or excess freight, among others.
Tips for quoting road freight
The formation of the price for national freight is complex, as it includes several variables that integrate the final value and are passed on to customers. Some of these variables are taxes, fees, and even the security and quantity of the merchandise. Furthermore, technology plays a significant role in enhancing the customer experience, seeking a suitable national freight quote for their cargo to boost revenue, improve the company’s cash flow, and optimize routes for agility and competitiveness.
Have cargo data on hand
Having cargo data on hand to request a national freight quote is a determining factor in finding the carrier that offers the best cost-benefit for the shipment. Some of this important information includes the complete address of origin (collection) and destination (delivery), delivery time, type of cargo (complete description of the goods and NCM), packaging, total value of the cargo, quantity, weight, and dimensions of the volumes, other additional cargo information, transport conditions, and delivery restrictions (e.g., specific times), desired additional services (loading, unloading, equipment). Thus, the pricing process will be more straightforward, saving time when consulting various carriers before making the final decision.
Check handling conditions and cargo peculiarities
Carefully checking handling conditions and cargo peculiarities is an indispensable practice when quoting road freight. Having these habits is essential not only to ensure the integrity of the cargo but also to optimize costs and provide quality service. Understanding the specific characteristics of the products to be transported is crucial to determine the necessary care during loading, unloading, and transit. After all, fragile items require more robust packaging and gentler handling methods, while perishable products require special temperature conditions. Additionally, considering factors such as urgency in delivery, sensitivity to climate variations, among others, can directly impact the final freight budget. Therefore, a deep understanding of the specific requirements of each cargo allows for the selection of more efficient routes and the use of suitable vehicles. These considerations result in faster and safer transportation, all of which influence the final freight price. Therefore, it is crucial to include these details in the road freight budgeting phase to ensure a more accurate proposal aligned with the needs of those wishing to hire national road freight.
Consider the ideal transit time
Consider the so-called transit time, which is the interval necessary for merchandise delivery. It is necessary to consider the transit time from one point to another to avoid operational bottlenecks that can compromise the previously established deadline between both parties. This is an important metric for transportation logistics, considered the most influential factor in national freight contracting. Focusing on transport time, the ideal transit time becomes shorter and more reliable, increasing the hiring of carriers that prioritize good service, aligning the scheduling of their deliveries with the needs of their customers.
Do not forget technology
Consider technology as a means, not an end, in your transportation management process, as it will be your best ally when quoting road freight. Not forgoing technology at this moment is an essential step to optimize processes and reduce costs. Technology has revolutionized how companies deal with logistics, providing tools that make the process of quoting freight more agile, precise, and efficient. Digital platforms allow task automation, quick price and condition comparisons, with access to all service providers and road freight values practiced in the market, bringing efficiency to the operation by receiving multiple proposals in the same standardized format. One of the most evident benefits of using technology in quoting road freight is time savings. Previously, the process could require hours of manual research, contact with various carriers, and information compilation. Today, integrated systems allow obtaining quotes in minutes.
Use Cheap2Ship solutions to quote your national road freight
The Cheap2ship freight quoting platform boosts the efficiency of your national transportation logistics by road, allowing you to choose the best option for your business. In a single freight quote, you receive multiple standardized proposals in a much-reduced time compared to the return of requests. Additionally, you will have a reduction of up to 30% in freight costs and greater compliance in operations, with results that will be enhanced through agile processes for your national freight quotes. Modernize your operation and enhance operational results with Cheap2ship!
