Logistics Sub-Sector Land Transportation

 

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Participant Handbook 
36 
Notes 
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37 
Land Transportation 
Associate 
UNIT 2.3 Freight Estimation / Regulatory Compliance / Mandatory 
Documentation 
 
Unit Objectives 
At the end of this unit, one will be able to:
1.
Estimate the freight for consignment 
2.
Check the regulatory compliances in case of hazardous, dangerous goods & process the 
consignment accordingly. 
3.
Prepare all the mandatory documents for land transportation, including marine insurance. 
4.
Appreciate the requirements of the customer and show flexibility in operations. 
2.3.1 Estimation of Freight 
The freight calculation is as per the gross weight of the cargo or the volumetric weight so calculated 
based on the mode of transportation and the higher of the two figures is taken. It also takes into 
account the distance (Km) between the origin & destination. Other factors that play a part are the 
availability of vehicles where the trucks are required for loading. (Higher the availability lower the 
freight & vice versa) i.e. market condition. Lastly, we need the owning and operating cost of the 
vehicle, based on parameters such as cost of the vehicle, interest, depreciation & taxes fuel cost, 
repairs, insurance and other administrative overheads. 
An associate needs to check from the market from the transporters available in the contact list. Based 
on the quotes, he may check the correctness of the freight rates based on the above factors and 
choose the most optimum freight payable.

Fig. 2.3.1 estimation of Freight

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