This document provides information on calculating transportation costs for small consignments. It discusses that transfer of belongings is a necessity regardless of wealth or location. Calculating costs becomes complicated for consignments that are neither large nor small. There are generally three types of consignments: normal goods, oversized goods, and bulk goods. The document outlines a formula for calculating costs that includes factors like cost per kg, surcharges, fees, and more. It provides an example calculation and discusses how transport companies typically arrive at pricing and earn profits from each transaction.

1. HOW TO CALCULATE ON TRANSPORTATION OF
SMALL CONSIGNMENTS
SMALL PERSONAL CONSIGNMENT
(Domestic context)

2. SMALL CONSIGNMENT GOODS CALCULATION
INTRODUCTION:
Life starts with his personal movements of oneself, followed with
a thought that one should move from one place to another with
his personal belongings may be his family, household goods, or
transfer of his business from one place to another.
With the above, we can conclude that transfer of one’s belonging
is perennial in anyone’s life. Transfer of people and goods is an
every person’s requirement irrespective of being a un wealthy/
poor, wealthy, a common man or an Industrialist, developed or
underdeveloped nations. Goods may be of small quantity or large
quantity, multi-dimensional, bulk and so on and so forth.

3. SMALL CONSIGNMENT GOODS CALCULATION

4. SMALL CONSIGNMENT GOODS CALCULATION
Man succeeds in easy transfer of himself, his
spouse or children, if the number is small;
similarly if there is a small and handy quantity,
he is willing and does it easily as most all
require to undertake a job with at least some
profit or else it is quiet complicated.
And when the number of people is more or the
goods consignment is large, he finds it also
easy as he can book a vehicle – passenger or
goods and transfer his goods, through a
appropriate transport vehicle.

5. SMALL CONSIGNMENT GOODS CALCULATION

6. SMALL CONSIGNMENT GOODS CALCULATION
 .

7. SMALL CONSIGNMENT GOODS CALCULATION
Variety of trucks seen in the market – Jumbo/ Taurus Trucks, Trailers, 20, 40, 80 Feet Containers,

8. SMALL CONSIGNMENT GOODS CALCULATION

9. SMALL CONSIGNMENT GOODS CALCULATION
Complication initiates when the consignment is
neither huge nor small, similarly with people, here
with living beings, we split into small groups to make
our work successful, but when it comes to a goods
consignment, it becomes complicated and requires
some in-puts.
Generally people, approach a transport contractor
and pays what so ever he asks for and is less
interested to know in detail as it may be a one-time
exercise or a ad hoc transaction.
The goods movement can be basically classified into
three types as follows:

10. SMALL CONSIGNMENT GOODS CALCULATION
Transportation of a normal good:
Normal good shall be referred to that good, which has
a uniform structure, size where handling is not a
major issue. The weight and size is known or
acceptable to all.
Transportation of ODC or Over Dimension
Consignment:
ODC shall be referred to those goods which have an
extra-ordinary size and weight, where handling is not
easy.
Transportation of Bulk Consignment:
Bulk Consignment shall be referred to those goods
which shall have almost no weight compared to the
size of the consignment.

11. SMALL CONSIGNMENT GOODS CALCULATION
When we approach the transport operator.. They normally ask you few Gentle
Questions and pinch your pocket (If you are unprepared):
1.Where is the Bill for the old house hold goods.
When I say its an old one, he gets a chance to charge you more (for your
scrap material).
2. What about delivery charges?
Normally an unplanned person would prefer to be delivered at Home.
3. They give an unexpected freight without verifying the good.
When you don’t know, he gets a chance to charge abnormally.
3. You need to pay… Rs. xxx/- now itself…
Like any courier office, every transport consignment is also transferred/
transported in TBB/ Paid/ To Pay Basis.
(He will not tell you about demurrage charges, if you have opted for Go-down
Delivery)

12. SMALL CONSIGNMENT GOODS CALCULATION
For any transfer of house hold goods, you
need to prepare a ‘self declaration letter’
addressed to “TO WHOM SO EVER IT
MAY CONCERN”, which need to be
CERTIFIED that “Its my personal
consignment, which is not for sale, hence
does not have any commercial value”
(The consignment transit the transporters need to
cross certain check-posts or squad comes to
check the consignments, our certificate will act
as an document in support with the
consignment)

13. SMALL CONSIGNMENT GOODS CALCULATION
In our recent past, one revolution in transport industry took place
which was termed as ‘Logistics’, where many transport
organizations made huge money, by advancing services, like
proper warehousing, efficient goods handling, transportation,
timely delivery of goods.
Where firms made huge money by this formula, and people paid,
making the transport organizations to grow bigger and bigger…
Let me brief on those simple techniques:
a. Cost per kg (Minimum cost if its underweight)
b. Surcharge on freight (20% of the cost)
c. FOV charges
d. Handling charges
e. Stationery and Statistical charges
f. DD charges (Its usually Rs. 300 to Rs. 800 depending on the
parcel and so on…

14. SMALL CONSIGNMENT GOODS CALCULATION
A quiet number of transport organizations
across charges freight based on the above
formula…
We here shall discuss on the techniques,
a. How they arrive at per Kg
b. How much do I pay and
c. How much a company earns per transaction

15. SMALL CONSIGNMENT GOODS CALCULATION
Take a consignment to be transported from Mysore to Mumbai which is Rs. 20 per Kg and I
need to transport a consignment of 15-20 Kgs, where the value of the consignment is Rs.
80,000.
Based on the above formula the calculation would be arrive at the following:
Cost per kg 20 Kgs 40 800.00
Surcharge on freight (20% of the cost) 20% 800 160.00
FOV charges 1.25% 80000 1000.00
Handling charges 30 1 30.00
Stationery and Statistical charges 100 1 100.00
DD Charges 500.00
Others – Demurrage Charges*
Total 2,590.00

16. SMALL CONSIGNMENT GOODS CALCULATION
In all the above 3 types of consignments, we need to collect the
following data:
1. Identify the place where transportation of goods are frequent, may
be a city near by or a transportation trans-shipment point.
2. Identify and collect the ‘Freight Rates for a normal truck of 9 MT’
from ‘Place A’ for the destination (Excluding, Labor charges,
Freight on Value (FOV), Demurrage charges and so on, from at
least 5 transport contactors/ commission agents.
3. Calculate the average of all.
4. Double the average.
5. Divide the same with 9000.
6. You get a figure, which is the rate per Kg basis.

17. SMALL CONSIGNMENT GOODS CALCULATION
A normal truck has 6 wheels/ 9 MT, and size is
18*7*7= 882/9000 Kgs*100 = 9.8 Kgs/ Sq Ft

18. SMALL CONSIGNMENT GOODS CALCULATION
Taurus Truck – 16 MT capacity – Has 10 Wheelers

19. SMALL CONSIGNMENT GOODS CALCULATION
Now in slide number 4, you need to co-relate, in which category
will your consignment fall into and calculate the rates.
1. Normal goods: If above 40 Kgs (It depends on the transport
operators on the weight, the standard weight is 40 Kgs), just
multiply with its weight or calculate on base weight @ 40 Kgs.
2. ODC: If the consignment has enough weight then the above
formula would be applicable, if not the formula used for Bulk
consignment will be applicable.
3. Bulk consignment: In Bulk Consignment, you need to calculate in
square feet, where the standard weight per square feet is 12
Kgs, and hence you arrive at the exact rate for transportation of
the consignment.

20. SMALL CONSIGNMENT GOODS CALCULATION

21. SMALL CONSIGNMENT GOODS CALCULATION
If any doubts, across on ‘Domestic
Transportation of goods’, please feel free to
get in touch with me… as I have some
experience in this context.