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How much does it cost to send my parcel? A guide to how freight prices are calculated.

Whether it's sending a birthday or Christmas gift to a loved one, ordering something on-line, or a daily part of operating a business, working out what it costs to send freight can be a confusing thing. It should be a straight forward process.


But, did you know that that there are 7 main factors that determine freight prices?

  1. Number of items

  2. Size

  3. Weight

  4. Destination

  5. Urgency

  6. Special requirements; like hand unloading or tailgate delivery, and

  7. Fuel Levy


Number, size and weight of items:

All freight providers have a base price for a parcel or a pallet based on size, weight, destination and quantity. Some providers charge by the pallet space (i.e. floor to roof of the trailer), others charge by the pallet unit. Most have a base price for a single carton to a single destination, with a small increase for multiple items to the same location.


Destination:

To arrive at its destination, some items travel via a single freight provider. This is common for freight travelling from Mildura to most major cities or regional centres like Bendigo.

For other items that are going to places outside of the main freight provider’s area of service, a second or even a third freight provider (often called an on-forwarder) is required for those legs of the journey. This is typical for freight going to or from rural towns. In these cases, there is always an “on-forwarding” charge applied that covers the cost of the extra legs.


Urgency:

Freight that requires a fast delivery time, e.g. overnight/next day, will always attract an extra charge, as there is often an extra handling function or two to ensure that your item arrives within your required window; or via a totally different transportation method.

In saying that, sometimes a service like a StarTrack Premium or an AusPost Express, can actually take longer than a regular parcel due to the services that those “Express” items travel on. Logistics isn’t always as efficient as it could be due to a number of cost factors. This is particularly true when travelling to or from rural destinations. For example, it isn’t uncommon for an Express post item to take an extra day to arrive in Mildura from Wodonga, when compared to a regular post item.


Special requirements/services:

Depending on what you are sending, or where it is going, special services may be required as part of the delivery or pick up function. This is usually because these extra services require more time, or extra people to complete. Some examples include:

  • the need for a tailgate because there is no forklift available on site to load or unload a pallet, or

  • an extra pair of hands to assist with heavy or multiple items, or

  • where there is an extended travel distance from the delivery/pick-up vehicle and the physical location of pick-up/delivery point, such as a long driveway that does not accommodate a larger sized delivery vehicle.


And finally, Fuel Levy:

Fuel prices fluctuate daily, up and down, which makes it difficult to add a “fuel cost number” to freight costs. As such, a fuel levy is applied which is a calculated average of the month's fuel movements, typically the previous month, and is applied to freight costs as a percentage.



At SFC, we take all of these factors into account when providing a quote for your freight and have an extensive network of freight providers that allows us to give you the best option, every time.


For all freight quotes, head on over to our “get a quote” page and complete the form; or give our team a call. We’ll be more than happy to assist.


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