Haulier Rates: Types of rates – the

basics

Mark Wilson

Haulage can be a significant proportion of the Overall Supply Chain Cost.

Knowing your Product & Delivery Profile and using the most appropriate types of rates can help reduce this cost to a minimum.

In this presentation we’ll show you the different types of rates and what they are commonly used for.

Used when load is not standard – e.g. Fabric, Machinery, Hanging Garments etc.

Positive: you can take advantage of the full height of the vehicle (usually height restriction on pallets)

Negative: you are paying for the whole space (full width and height)

Commonly used for: Clothing

Uniformed “footprints” either Euro (33) or GKN (26), Stackable or Non-Stackable

Positive: easy rate matrix to use, easily compared with other hauliers

Negative: if non-stack then you are paying for the empty space above

Commonly used for: tinned food, wines & spirits, pharmaceutical

Heavy items (small or large) – pay for space left on vehicle – e.g. Paper Rolls

Positive: easy to work out rate as usually not many bands (ie 0 to 250kg, 251kg to 1,000kg etc)

Negative: vehicle weighing facility required to confirm load either on site or agreement / charging mechanism with a 3rd party

Commonly used for: paper, chemical (not tanker qty’s), machinery

Weight

Pay for whole vehicle – Special rates and can be seasonal

Positive: if carefully planned you can take full advantage as the whole vehicle is yours to fill up

Negative: if delivering at the last minute you may pay for a FTL with only a Groupage / part load

Commonly used for: all (scaffolding, production companies)

FTL

Pay by distance travelled

Positive: usually this is small vehicles Van, 3.5t or 7.5t vehicle and smaller operator so can negotiate a good rate

Negative: can pay more for out of the way deliveries against a courier service (depending upon size of load)

Commonly used for: Stationary, scaffolding

Price per KM

To learn how to effectively apply a “best fit” rate matrix which can help reduce your logistics costs call us on 0333 9000 350 or visit our website:

If you would like more information on haulage rates or keeping your costs to a minimum call us on 0333

9000 350 or visit our website: