Understanding the Average Truck Transport Cost KM in India

As a matter of fact, with the Indian economy expected to continue expanding in 2024, truck transport costs will surely play a significant role in shaping logistics plans.

The capacity to precisely estimate and predict these costs, either for faraway freight travel or short-distance deliveries, will enable firms to make well-informed decisions, bargain for lower prices, and eventually optimize their supply chain operations.

Furthermore, it becomes evident from our exploration of the nuances surrounding truck transport costs in India that this information is helpful.

Reasons Affecting The Price Of Truck Transport:

A complicated network of interrelated factors affects truck transport costs in India, with each element adding to the total cost per kilometer. Take a closer look at the important components:

Fuel Costs:

Moreover, it is impossible to overestimate how much fluctuating fuel prices affect transportation expenses.

Kind Of Truck:

Truck manufacturers have designed a variety of truck types, such as mini trucks, trailers, and containers, with specific limits and costs for operation, tailored to meet different needs.

Moreover, a small truck is more suitable for carrying smaller loads, while a container truck, which is designed to transport huge or heavy items, incurs an additional transit rate per kilometer.

Capacity To Load:

To achieve cost optimization, the truck must utilize its fullest capacity.

Distance And Route:

The distance and route details heavily influence transportation expenses. Longer drives use more gasoline and cause the car to break down more frequently, which raises the total cost.

Taxes And Toll Charges:

Taxes and tolls imposed on main routes increase the cost of truck transport.

Driver Fees:

Skilled drivers demand higher compensation, and these wages cover overall expenditures. Additionally, laws governing driving hours and the requirement for extra operators for longer trips may also increase these expenses.

Market Demand Seasons:

Rates typically rise during peak seasons when there is an increasing need for transportation services because there is a greater need for truck space.

Because of less demand, rates may be cheaper during not busy times.

Costs Of Insurance And Safety:

Although they may be more expensive initially, purchasing comprehensive insurance coverage and following safety guidelines will help you avoid suffering major financial consequences in the event of a mishap or damage to your shipment.

Also Read: Which Moving Truck Size Is Right For Your Self-Move?

How To Determine The Truck Transport Cost Per Kilometer:

All of the previously mentioned variables must be combined and divided by the total number of kilometers transported to determine the cost per kilometer for truck transport. The following is a simpler version of the formula:

Total miles traveled / Total transportation expenses equals the cost per kilometer.

Fuel, servicing, driver pay, tolls, taxes, approval, coverage, and loading/unloading fees are all included in the total cost of transportation. It’s crucial to remember that while some of these expenses—like insurance and permits—are constant, others—like gasoline and maintenance—are changeable and rely on the mileage and effectiveness of the truck.

Typical Prices By Important Indian Cities:

Let’s examine some comparing findings of transport prices between key Indian cities and go into examples that show how to calculate costs for various truck types, and distances to give an improved understanding of the way the truck transport cost per km in India might vary.

A Comparative Study Of Truck Transportation Prices:

From Delhi To Bangalore:

The 2180-kilometer stretch from Delhi to Bangalore is one of the main freight routes in India. The cost per kilometer for a typical 16-ton truck can change depending on the type of goods, tolls along the NH-52, and fuel economy. Fuel price changes and seasonal demand can have a substantial impact on the entire cost of transportation.

From Kolkata To Chennai:

This 1,666.8-kilometer route passes through multiple states and is subject to many tolls and state fees. Due to the greater distance and higher tolls, the cost of transporting a container truck—which is frequently utilized for long-haul transport on this route—would also likely be higher.

From Chennai To Mumbai:

The 1,319.6-kilometer Chennai to Mumbai route is additionally a vital link for companies moving products between the western and southern regions of India. Because of its smaller load capacity and lower fuel consumption, a mini-truck’s cost is typically determined by taking into account its higher per-ton rate when calculating a less-than-truckload (LTL) cargo.

Also Read: How to Transport Your Car By Train in India

Case Studies To Understand Better The Calculation Of The Cost:

Case Study 1: Delhi To Bangalore With A 16-Ton Truck:

Distance: 2180km

Fuel need: 3km per liter.

Fuel cost: Rs. 80 per liter.

Fuel cost:  Rs. 58133 ( 2180km/ 3km per liter ×Rs. 80).

Toll charges: Approximately Rs.6000

Driver fee: Rs. 800 per day, for example, 800× 3 days = Rs. 2400( Calculate it with the required number of days)

Service and other charge: Rs. 2000.

Total cost = Rs. 68, 533.

Case Study 2: Kolkata To Chennai With A Container Truck.

Distance: 1666.8km

Fuel need: 2.5km per liter.

Fuel cost: Rs. 80 per liter.

Fuel cost:  Rs. 53,337 ( 1666.8km/ 2.5km per liter ×Rs. 80).

Toll charges: Approximately Rs.7000

Driver fee: Rs. 800 per day, for example, 800× 4 days = Rs. 3200( Calculate it with the required number of days)

Service and other charge: Rs. 3000.

Total cost = Rs. 66537.

Case Study: 3 Chennai To Mumbai With A Mini Truck:

Distance: 1319.6km

Fuel need: 4km per liter.

Fuel cost: Rs. 80 per liter.

Fuel cost:  Rs. 26392 ( 1319.6km/ 4km per liter ×Rs. 80).

Toll charges: Approximately Rs.4000

Driver fee: Rs. 900 per day, for example, 900× 2 days = Rs. 1800 (Calculate it with the required number of days)

Service And Other Charge: Rs. 1500.

Total cost= Rs. 33,692

Government Policy And Technology’s Effect On The Cost Of Truck Transport:

Technology Lowering Operating Expenses:

Improved route selection, load optimization, and vehicle servicing are made possible by fleet management software and superior analytics, which can also potentially save operating costs. While they are still in their infancy in India, technologies such as autonomous trucks have the potential to completely transform the sector by drastically reducing labor costs and boosting productivity and safety.

Policies Of The Government That Increase Efficiency:

The transportation sector is expected to become more cost-effective as a result of modernization policies including the encouragement of digitization in logistical operations and the provision of incentives for the use of renewable energy sources. Subsidies for electric cars and infrastructure expenditures for charging them, for example, could reduce the financial hurdles to the adoption of electric trucks.

Reforming Regulations To Streamline Operations:

Transport costs are anticipated to be impacted by regulatory changes, particularly those about overloading standards and driver work hours. These policies can lower insurance premiums, penalties, and accident costs by guaranteeing improved security protocols and compliance.

We’ve looked at the many variables that affect truck transport expenses, such as fuel prices, truck types, tolls, and governmental regulations. These factors work together to build the pricing structure, therefore companies and logistics operators must remain knowledgeable and flexible.

FAQs On Truck Transport Costs In India: