Freight costs

Freight is priced in different ways depending on the mode. A full container or full truckload has one price for the whole thing, whatever is inside, so the more you fit in, the cheaper each unit travels. If a container costs $3,000 to ship and holds 1,500 cartons, freight is $2 a carton. Fit 2,000 cartons by packing better and it's $1.50.

Part loads (LTL by road, or LCL, less than container load, by sea) are priced by weight, volume, distance and the type of goods. Parcels and air freight are priced by weight, but with a catch: a big, light box takes up space a heavy one would have paid for.

So carriers charge by dimensional (or volumetric) weight when it's more than the actual weight. For air freight the usual rule is length × width × height in centimetres, divided by 6,000, gives kilograms. A 60 × 50 × 40 cm box: 120,000 ÷ 6,000 = 20 kg. If it actually weighs 12 kg, you pay for 20. The higher of the two is the chargeable weight. Parcel carriers use similar rules with their own divisors.

That's why packaging matters to logistics. A box with less empty space is cheaper to ship, and more fit on a pallet and in a truck. Some online shops have cut freight costs a lot just by offering more box sizes.

On top of the base rate come surcharges: a fuel surcharge that moves with the price of diesel or jet fuel, fees for residential delivery, remote areas, liftgates or waiting time, and in busy seasons, peak surcharges. When comparing quotes, compare the total, not the base rate.