Freight Costs for Aussie Farmers- What You Need To Know

by Katie BRT Manager Apr 30, 2024

What you need to know about freight costs.

Freight costs for farmers are an important aspect of agricultural development. 
That’s why we have done the research to find out exactly what is in store for Aussie farmers as they navigate freight, business and life in 2023.

For many farmers in Australia, freight costs are a major expense. If you're shipping goods to markets and customers, or if you need to import materials for your farm, understanding freight costs is essential. Let’s break down what you need to know when it comes to freight costs and how they can affect your bottom line.

What Are Freight Costs?

Freight costs refer to the overall cost of transporting goods from one place to another. This includes the cost of fuel, labour, packaging, loading and unloading fees, insurance fees, and other related taxes and associated costs. The cost of your freight depends on a variety of factors. These factors can include;

  • The size and weight of the items being shipped
  • The distance between origin and destination points
  • Any special requirements for handling or storage during transit
  • Rising fuel costs and wages
  • The use of AI and technology by transport companies when transporting stock and goods world-wide.

These logistics are the largest costs for farmers Australia-wide.

 

How Can You Reduce Freight Costs?

There are several ways you can reduce your freight costs. In the first instance,  you can try to minimise the size and weight of your shipments by consolidating multiple smaller shipments into one larger shipment. This means less trips, and a saving on fuel.

It may also be possible to negotiate discounted rates with carriers if you have ongoing business with them. This can help with ongoing positive business relationships, even when the industry is going through a slump or stock is becoming harder to transport. Using third-party logistics companies can also help to streamline shipping operations and save money in the long-term.

Also be sure to take advantage of any tax deductions or credits that may be available for certain types of shipping expenses. One way that you can find out if you are taking advantage of these credits is by utilising the Best Rated Transport search system that allows you to find the best options for you, your business and your farm.

 

What Are Some Challenges When it Comes to Freight?

Utilising freight to move large inputs, such as livestock feed or hay, can be an effective way to deliver goods with increased efficiency. However, there are often a number of challenges that farmers face when attempting to use these freight services.

Depending on the  load size and delivery location, finding the right carrier and right vehicle type may present more difficulty than anticipated. Other issues may also include timing constraints that could impact the production cycle if deliveries are not received in a timely fashion. These factors, as well as additional handling costs, when utilising freight transport are considerations that all farmers need to consider.

Utilising the Best Rated Transport quote tool can aid in navigating these challenges to ensure that farmers have access to competitive rates while increasing their operational efficiency and productivity.

Knowing how freight costs work is essential for Australian farmers who need to ship their products across borders and seas. By understanding what goes into calculating freight costs, such as size/weight of shipment and the  distance between origin and destination points, you'll be able to better plan for these expenses ahead of time.

With this knowledge in hand, you'll have everything you need when it comes time to ship those goods! Don't forget to visit the  Best Rated Transport Website to help you decipher all things farming and freight.

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