What does freight cost?
Whether you are sending goods by road, sea, air, rail or courier, price is often the deciding factor. Freight rates are shaped by supply and demand - when capacity is tight, costs rise. Global market shifts, crises, conflicts, wars and natural disasters can also send prices soaring overnight.
In short, many factors influence what you pay to move goods from A to B. In this post, we will explain the most common ones.
Which factors affect your freight rate?
Cargo volume and size
The size and volume of your shipment will always play a key role in determining the cost of transport. For air freight, the cost per kilogramme usually drops as the shipment size increases. For courier services, weight and dimensions are especially important, as these solutions are designed to handle everything from small parcels to bulky packages quickly and reliably.
When it comes to road transport, freight rates are often calculated using load metres - a measure of how much space your cargo takes up in the truck’s hold.
Read more about loading metres and calculation method
Container type
When shipping by sea, the type of container you choose affects the freight cost. If your cargo includes special equipment - like oversized items or goods with unusual dimensions - you may need a container with unique specifications. For instance, an open-top container often costs more because you are paying for extra space that cannot be fully utilised.
Your freight rate will also depend on whether you are shipping a Full Container Load (FCL) or a Less than Container Load (LCL).
Read more about container types and sizes
Read more about FCL and LCL shipments
The Shanghai Containerised Freight Index (SCFI)
The SCFI is the world’s most widely used benchmark for ocean freight rates. It shows the average cost of shipping a 40-foot container from a major Chinese port to a main European port — currently around USD 4,200.
However, this rate can fluctuate significantly and does not include local costs at the departure or destination ports, such as loading and handling fees. Final prices can also vary depending on your logistics partner’s purchasing agreements and shifting supply and demand.
Read more about the Shanghai Containerised Freight Index
Transport distance, destination and delivery speed
The distance between origin and destination naturally affects your freight costs. If you are shipping large volumes over long distances, sea freight is often the most cost-effective choice. But if speed is critical, air freight or courier services may be a better fit - though they usually come at a higher price.
| Air freight | Sea freight | Road transport | Rail transport |
| Best for urgent or high-value shipments. Fast but more expensive, with a higher environmental impact. | Most economical and has the lowest environmental footprint. Ideal for larger volumes and less time-sensitive cargo. | Flexible option for land transport - great for shorter distances and last-kilometre delivery. | Good alternative for long distances with lower CO₂ emissions, but routes are fixed and less flexible. |
Fuel and oil surcharges
Fuel and oil surcharges make up a significant part of the total freight cost. These surcharges are variable and typically adjusted each month based on market supply, demand and fluctuations in global oil prices - all of which directly affect freight rates.
For road transport and air or courier shipments, fuel costs can account for about one-third of the total freight price. Sea freight also includes an oil surcharge, but the rate can vary between shipping companies.
