In the world of logistics, freight rates are often a hot topic, writes Meet Morjaria, of Jalaram Freight Carriers Pvt. Ltd.

Customers want faster deliveries at lower costs, but what goes into freight pricing? Why do rates fluctuate? And most importantly, what does a fair freight rate cover? For businesses, transport is not just an expense—it’s an investment in supply chain efficiency. Yet, there’s often a gap between what customers expect and the actual costs transporters bear to ensure safe, reliable, and timely deliveries. If you’re shipping goods, here’s what you should know about the true cost of logistics—and why fair pricing isn’t just about paying for a truck, but for an entire ecosystem that keeps India’s economy moving.

Fuel Costs: The Uncontrollable Factor

Diesel prices dictate freight rates more than any other factor. A single price hike affects thousands of vehicles across the country. Fuel makes up 40-60 per cent of total freight costs for long-haul transport. Transporters optimise routes to minimise fuel consumption, but there’s no escaping rising diesel costs. Expecting freight rates to remain static despite fluctuating fuel prices? That’s like expecting airfares to stay the same regardless of oil prices.

Toll Charges: The Price of Infrastructure

India has an expanding network of highways, and tolls are part of the trade-off for better roads. Every toll plaza adds cost to the journey, sometimes multiple times on a single route. Delays at toll booths waste fuel and increase transit time—both of which cost money. The number of toll plazas has increased significantly, adding to transporters’ operational expenses.

Skilled Workforce: The People Behind the Wheels

A truck is only as good as its driver and support team. Skilled, experienced drivers ensure safe and on-time deliveries. Logistics teams track and coordinate shipments in real-time. A driver shortage in India is increasing wages, making labour a growing cost component.

Maintenance & Compliance: Keeping Trucks Roadworthy

A well-maintained truck is a safe truck, and maintenance isn’t cheap. Routine servicing, tyre replacements, and engine repairs ensure smooth operations. Compliance with permits, insurance, and taxation is mandatory and adds to costs.  Cutting corners on maintenance leads to breakdowns, delays, and safety risks—which no customer wants.

Route Demand & Empty Returns: The Invisible Cost

Many customers assume freight rates are based only on the loaded trip, but the return journey matters too. If there’s no cargo for the return leg, transporters bear a loss on one side of the trip. Some routes have high outbound demand but low return cargo, increasing overall costs. Pricing must account for both legs of the journey to ensure sustainability.

Why Cheaper Freight Isn’t Always the Best Choice

Customers sometimes push for the lowest rates without realising the risks of unsustainable pricing. Unrealistically low freight rates can lead to overloaded trucks, driver fatigue, and unreliable service. Cutting costs often means compromising on vehicle maintenance and safety standards. The cheapest option today can result in delays, damages, or unexpected costs tomorrow. Instead of just looking for the lowest price, look for the best value—one that ensures reliability, safety, and long-term partnership.

Final Thoughts: Freight Pricing is About Sustainability, Not Just Cost

Logistics is the backbone of any business and fair freight pricing ensures a stable and efficient supply chain. It’s not just about paying for transport—it’s about paying for well-maintained vehicles that ensure damage-free deliveries. Trained professionals who manage shipments efficiently. Compliance and safety measures that protect your cargo. Next time you negotiate freight, ask yourself: Are you looking for the cheapest deal or the best logistics partner for long-term success?  What are your thoughts on freight pricing? Have you faced challenges balancing cost and service?

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The views expressed by the author are his personal views and do not necessarily reflect the views of CV Magazine.

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