Kilometer-Based Freight Rates

Kilometer-Based Freight Rates is a logistics pricing method in which shipping charges are computed based on total distance traveled, often per kilometer. This strategy is common in road freight and domestic transportation services throughout Europe, Australia, and portions of Asia. It enables logistics companies to quote and bill consumers in a clear and scalable manner, particularly when fuel consumption, wear and tear, and time spent on the road are closely related to distance. The rate may vary depending on the vehicle type, cargo weight, road conditions, and any relevant tolls or taxes.

CargoWise’s tariffs and grading systems allow logistics organizations to create and implement kilometer-based pricing regulations. Users can create region-specific rate cards, incorporate GPS-based route data, and generate invoices based on actual kilometers traveled. This model facilitates route optimization tactics and improves cost predictions, particularly for enterprises with significant delivery volumes or long-distance transportation services. Kilometer-based tariffs also encourage pricing justice and consistency in competitive bidding and contract negotiations.