Trip costs transporters forget to count

Direct costs people remember

Diesel, tolls and driver bata are usually counted. Even these get missed when slips arrive late.

Costs that are often missed

• Tyre wear: allocate tyre cost per kilometre instead of when a tyre is replaced.
• Loading and unloading charges and detention.
• Broker or agent commission.
• Police, RTO and miscellaneous en-route expenses.
• Repairs and maintenance accrued for the kilometres run.
• Idle days waiting for a load, when EMI, insurance and permits still run.

Fixed costs per kilometre

EMI, insurance, permits and driver salary do not change with the trip but must be recovered through freight. Divide monthly fixed cost by expected kilometres to get a cost per km to add to each trip.

A simple method

• Record fuel, toll and advances against each trip as they happen.
• Add a per-km allowance for tyres and maintenance.
• Add a per-km share of fixed costs.
• Compare against freight to find true profit and the break-even freight.

Our free trip profit and fleet cost calculators follow this method.

Frequently asked questions