Today, road transport is one of the most popular modes of transporting goods in Vietnam. However, not everyone knows how to calculate road freight rates in Vietnam today. This article will provide useful information to help you better understand road freight.
Why choose complex transport mode by road
Road transport now accounts for around 70% of overall transportation demand in Vietnam. So, why is road travel so popular and preferred? The following benefits will influence the answer:
1. Flexible time
The distinction and benefit of road transportation over other forms of transportation such as sea, rail, and air. It is possible to rent a cargo truck at any moment and to choose a delivery date and time.
2. Diversified roadmap
The road transportation infrastructure in Vietnam is rapidly developing and updating, making it simpler to move merchandise across regions. You’ll have to spend more time transporting your items to the station, train, or dock if you choose alternate modes of transportation.
3. Goods safety
When shipping by road, you want to be sure you get the highest quality possible. Frozen products, import and export goods, large goods, and other categories of commodities will be split. Different sorts of specialized vehicles will be used to deliver different types of commodities.
4. Transport volume
The transport volume varies from a few hundred kgs to a few dozen tons. You can choose the form of joining goods or rent a car on the whole route depending on your needs.
Provisions on how to calculate freight rates
Any mode of transportation will have to comply with a general charge principle and based on two factors that are the volume of goods and the transport route.
Specifically as follows:
- The weight of freight is the weight of packaging in tons (T).
- Calculation distance is the actual distance of transport of goods in kilometer (km).
- The minimum charge distance is 1 km.
Calculation of road freight rates
In road transport, the two main drivers of freight rates are the volume of goods and the region of the shipment.
Each of these factors will have specific ways of calculating. For the volume of goods, the calculation of road freight rates is as follows:
• Option 1: calculate the actual weight for lightweight goods. With these goods, the shipping company will carry out the weighing of that cargo.
• Option 2 (applied to heavy, bulky goods): use the formula (length × width × height) × 3/10000.
After determining the volume of goods to be transported. The shipping unit will multiply the unit price of each region of delivery from the place of shipment to calculate the appropriate freight.
Table of road freight rates
A number of provisions on road freight calculation charges:
- Freight by road is stipulated as the maximum rate and includes value-added tax.
- This Decision on freight charges takes effect from January 1, 2001, and replaces Decision No. 36 / VGCP-CNTDDV of May 8, 1997, of the Government Pricing Committee. Decision No. 13/1999 / QD-BVGCP of March 26, 1999, of the Government Pricing Committee on amending and supplementing a number of points in Decision No. 36 / VGCP-CNTDDV of May 8, 1997, and guiding documents relevant lead.
