Conquer the CLTD Challenge 2025 – Navigate Your Path to Logistics Success!

The seven drivers of transportation pricing include distance, weight, density, stowability, handling, liability, and market factors. Each of these drivers plays a critical role in determining the cost of transportation.

Distance is a primary factor because the longer the distance a shipment travels, the higher the transportation costs due to fuel consumption, time, and wear on the vehicle. Weight and density are also essential; heavier items generally cost more to transport, while density helps determine how much volume is occupied in relation to weight, which affects the shipping method and cost.

Stowability pertains to how items can be packed together, as efficiently packed shipments can reduce costs. Handling refers to the required effort to load and unload shipments, impacting labor and possible equipment costs. Liability considers the risk associated with transporting goods, including the value of the items and the insurance required, impacting overall pricing. Market forces can influence prices based on demand and competition in the logistics sector.

This collective consideration of these factors helps logistics professionals assess and set transportation rates effectively, ensuring they align with operational budgets and customer expectations.