1. Freight Companies 101
Picture an ordinary Tuesday morning. You’re in the car, dropping the kids off at school or perhaps you’re navigating the slowly building traffic on the way to work. As you get caught up in the flurry of your morning routine, it’s easy to overlook the large, rumbling trailer hauling trucks bellowing past you on the highway.
But imagine for a moment, you turned off the radio and slipped on a pair of X-ray binoculars. Suddenly, you’d see these colossal trucks as more than just noise and steel; you’d witness them as the vital arteries of our commerce. They’re not just hauling goods—they’re transporting everything from life-saving pharmaceuticals to the inventory that keeps online stores running. Each truck is a vital thread in the fabric of our daily lives, moving goods that sustain our country and keep our economy humming.
To some, or at least to those we've spoken to, transport might seem like a public good. Yet, the reality is far more complex. Thousands of privately run transport companies form a bustling ecosystem—freight companies, freight forwarders, owner-drivers, and fleet owners. Each plays a crucial role, in communicating, driving, and planning their routes across our red-dusted soil, seamlessly keeping the wheels of commerce turning.
Finding yourself on this page, you’ve likely stepped into the world of business proprietorship or perhaps secured a role in logistics. Now, you're faced with the challenge of understanding how freight companies operate and, more critically, finding a reliable logistics partner.
To make an informed decision, you'll need to establish clear criteria for assessment—guidelines that are, hopefully, more reliable than those of the 2024 Australian Breakdancing Committee. This means setting up a robust framework to evaluate potential partners and ensure they meet your business needs effectively.
When choosing between freight companies, it's vital to look beyond just the price. A dependable partner can be the difference between seamless operations and a supply chain disaster. Consider the 2020 cyberattack on Australian logistics giant Toll Group, which threw its IT systems into chaos for weeks. This incident left countless businesses scrambling for alternatives, with some suffering severe delays, inventory shortages, and significant financial losses. The takeaway? Trustworthy freight companies are indispensable for keeping your goods moving, even when the unexpected strikes.
Now, we might be slightly biased here, but we'd say that while cutting-edge technology can certainly enhance the performance of freight companies, the industry is still powered by good old-fashioned reliability. Transport may have come a long way from its steam train origins, but at its core, it remains the "turbo engine" of logistics—where robust operations are the key to timely deliveries. Technology is an excellent tool, but it's the expertise and dependability of freight companies' teams that truly drive success.
As you continue reading, you may come to realise that flashy names and the latest tech trends aren't necessarily what makes freight companies great. The real test of quality often comes down to the trust you place in their drivers and their commitment to getting the job done right. In the sections that follow, we’ll explore the essential factors to consider when evaluating freight companies. In the end, you might find that a company like INH Transport stands out for its consistency and expertise.
2. Getting the Right Freight Quote: How Pricing Impacts Your Shipping Decisions
Freight quotes are often complex, with various pricing models that can confuse even seasoned logistics professionals. From point-to-point rates to pallet pricing, the variation in quoting methods can leave you scratching your head. Here’s a closer look at some common freight quoting practices to help demystify the process—and hopefully make your next logistics decision a little easier.
Read our in-depth guide on How To Get The Best Freight Quote
Taxi Truck Rates: Similar to a Rental Model
Taxi trucks are often compared to car rentals. Freight companies quote based on the size of the truck and the duration of the rental, typically with a minimum period of 2 to 4 hours. This model is often used when customers require a vehicle for multiple deliveries in a single day. Both the truck and driver are allocated for that duration, providing flexibility but with a defined cost structure.
Point-to-Point Delivery: Direct, Metropolitan Coverage
Point-to-point delivery quotes are frequently used in metropolitan areas, covering one pickup and one drop-off point. These quotes factor in the driver’s wages, fuel consumption, and the total distance covered. This method ensures a predictable and straightforward approach to quoting, particularly when dealing with urban deliveries.
Pallet Rates: The Most Nuanced Approach
Ah, pallet quotes—the stuff of logistics legends. Pallets, those standard 1165mm x 1165mm transport structures, are designed to keep goods stable during transit. However, the pricing for pallets isn’t quite as stable. Freight companies will consider everything from weight, dimensions, and stackability to whether the goods are oversized. Essentially, you’re paying for the space and weight your goods take up on the truck. But here’s a pro tip: if you’re not in a rush, some freight companies will consolidate your pallets with others in large trailers that depart periodically, often resulting in significant savings for the patient customer.
Why am I being charged a fuel levy?
If you've noticed a fuel levy on your invoice, it's there to cover the fluctuating cost of fuel in Australia. Rather than constantly adjusting their rates, transport companies use this surcharge to reflect changes in fuel prices. As fuel costs rise or fall, the levy adjusts accordingly, ensuring companies can keep operating without overhauling their pricing structure.
But how is the fuel levy calculated? In Australia, most transport companies base it on the national average diesel price, which is updated regularly by the Australian Institute of Petroleum. Typically, the surcharge is a percentage of the transport cost and changes as fuel prices hit certain thresholds. So, when fuel prices rise significantly, you might see a slight increase in the levy—but when they drop, that charge decreases too.
In short, the fuel levy ensures you're paying a fair, transparent rate while helping companies manage unpredictable fuel costs.
The Price Puzzle: Why Moving Less Doesn’t Always Mean Paying Less
Freight pricing becomes even more intricate when we consider different load sizes. For instance, imagine a customer needs to transport 14 pallets, each weighing a tonne, from Sydney to Melbourne CBD. This shipment might cost around $3,000 to $3,500 if urgent and/or otherwise sensitive. If that same customer needed to only send one pallet, paying the same amount may appear disproportionate. However, the costs associated with the truck, driver, and fuel remain constant, irrespective of the load size.
This is where freight companies often switch quoting methods to balance fairness. Since operating costs remain consistent, freight companies have to find ways to make these deliveries seem equitable. A 2019 study found that fuel alone accounts for 31% of total freight operating expenses, so even a partially filled truck must cover those expenses. By recognising the factors that drive these costs, businesses can better anticipate pricing variations and choose shipping options that offer the best value for their unique logistics needs.
Make sure to read our comprehensive guide on navigating freight quotes
Did You Know?
The freight sector contributes 8-10% of Australia’s GDP. Understanding these quoting methods allows businesses to better manage logistics costs while ensuring efficient delivery.
3. Freight and Forwarding Services: Ensuring Smooth International Shipping
When you explore Australian road freight, you might be surprised to find that not all companies you encounter own or operate their own fleet. Many are freight forwarders rather than traditional freight companies.
In the world of freight and forwarding, there is a sophisticated and often symbiotic relationship between freight companies and freight forwarders. Freight forwarders frequently present themselves as full-service freight companies, handling everything from generating leads and providing real-time customer support to managing the logistics behind freight delivery. Meanwhile, freight companies—those that own and operate the trucks—work closely with these forwarders to ensure the final delivery of goods. It’s common for freight companies to white-label their services, operating under the forwarder’s banner to complete the delivery.
For more information on Freight Forwarders read our comprehensive blog on 'What Are Freight Forwarders'
This arrangement might seem like a bit of a bait-and-switch, but it’s actually a practical solution to several industry challenges. Owner-drivers, who run their own trucks, often lack the resources to manage customer service, administrative tasks, and real-time updates while on the road. Freight forwarders specialise in these areas, focusing on marketing and lead generation, while freight companies concentrate on their core business: driving.
This cooperative model isn’t unique to domestic freight; large-scale operations, such as international shipping, also depend heavily on freight forwarders to manage complex supply chains. These forwarders ensure compliance and seamless integration across various transport modes, connecting different providers and making global logistics more efficient.
Understanding the nuances of freight and forwarding is crucial, especially with rising costs in the industry. Fuel levies and employee wages have increased significantly—fuel excise is currently 42.7 cents per litre (Australian Taxation Office, 2024), and wages for logistics staff are on the rise (Australian Bureau of Statistics, 2024). In addition, forwarders often add their own markups to the base rates provided by freight companies, which can impact the final cost of your shipment.
Ultimately, gaining a deeper understanding of how freight and forwarders operate together can help you make informed decisions about your shipping needs. By recognising the key players and how they impact costs and service, you’ll be better equipped to navigate the world of logistics.
If you want to learn more about the difference between freight companies and forwarders read this informative guide.
4. Air Freight vs. Sea Freight: Choosing the Best Shipping Method for Your Business
While freight companies like INH Transport deal in road freight, when it comes to border transportation, Australian companies are faced with air freight and sea freight. Both options have their place in the supply chain, but deciding which one to use can make a big difference to your bottom line, efficiency, and even your environmental footprint.
If you are indeed dealing with international trade, you’ll need to weigh up the pros and cons of these two freight options. Air freight is lightning-fast, but sea freight offers cost savings and the ability to move bulk cargo. Understanding the benefits and trade-offs will help you figure out what’s best for your business.
The Speed Factor
Let’s start with speed. Air freight wins hands down when it comes to speedy delivery. If something requires urgent shipment, like electronics or pharmaceuticals, air freight is second to none. For example, a shipment from Sydney to Singapore can be in transit for just 1-2 days by air, compared to 14-20 days by sea. This is crucial for industries where timing is everything—think perishable goods or seasonal products.
But, as you might expect, that speed comes with a higher price tag. For businesses working with high-value goods where speed is critical, it often is. But for larger, less time-sensitive shipments, sea freight might be the more practical option.
The Cost Comparison
Sea freight is the clear winner when it comes to cost. In fact, the difference is pretty staggering. For instance, shipping a standard 20-foot container from China to Australia by sea can cost anywhere between AUD 1,500 and AUD 3,000. On the other hand, the same load by air could set you back anywhere from AUD 10,000 to AUD 20,000.
Why is sea freight so much cheaper? Well, for starters, container ships can carry massive amounts of goods, spreading the cost over thousands of units. That’s why industries like agriculture, mining, and manufacturing—sectors that rely on shipping large volumes—prefer sea freight. In Australia, products like coal, iron ore, and grain are shipped via sea because it’s simply more economical.
So, if you’re a business with a lot of cargo that’s not in a rush to get where it’s going, sea freight is probably your best bet.
Environmental Considerations
If you’re looking to make your supply chain greener, sea freight also comes out on top. While air freight is responsible for just a fraction of global trade by volume, it generates significantly more carbon emissions compared to sea freight. According to the International Maritime Organization (IMO), sea freight emits between 10 and 50 grams of CO2 per tonne-kilometre, depending on the ship. Air freight, on the other hand, can emit over 500 grams per tonne-kilometre.
Given the global push for sustainability, choosing sea freight can help businesses lower their carbon footprint. This is particularly relevant in Australia, where long distances and high export volumes mean environmental impact is increasingly becoming part of the conversation. As shipping companies invest in cleaner technologies and more efficient vessels, sea freight will continue to become a greener choice.
Market Trends: How Australian Businesses Are Using Air and Sea Freight
Australia’s geographic location means both air and sea freight play crucial roles in trade. For high-value, time-sensitive shipments, air freight is growing in popularity, especially as e-commerce continues to drive consumer demand for faster delivery. According to IATA, the demand for air freight in the Asia-Pacific region has increased, largely driven by online shopping and a growing appetite for imported goods.
On the other hand, sea freight continues to dominate for large-scale exports. Australia’s major industries—such as mining and agriculture—depend heavily on sea freight to move bulk commodities. The United Nations estimates that 80% of global trade by volume is handled by sea, and Australia’s reliance on shipping reflects this.
5. Specialised Freight Services: Tailoring Solutions for Unique Shipping Needs
Specialised freight services, often called sensitive freight, involve transporting goods that need extra care due to their value, fragility, or specific requirements. These items typically cannot be palletised or mixed with other shipments, making safety and precision critical. Whether it’s stage equipment for high-profile events or delicate medical supplies, the key to success in this industry lies in tailored logistics solutions.
For example, INH Transport was recently commissioned to move sound and stage equipment for the world-renowned ‘Ministry of Sound’ event. Interestingly, the client insisted on using three 14-tonne heavy rigid tautliners, even though two vehicles could have easily carried the load. This decision illustrates the importance of quality and service in specialised freight—clients often prioritise peace of mind over cost-saving efficiencies, knowing their valuable cargo is in the safest hands.
Read our in-depth guide on What Are Specialised Freight Services
In this sector, cargo insurance is also a critical consideration. Given the high value and delicate nature of many specialised shipments, robust insurance coverage is essential. INH Transport, for example, is insured for $1 million per load, reflecting their commitment to safeguarding their cargo throughout the entire journey. This comprehensive coverage not only provides clients with peace of mind but also underscores the provider’s dedication to managing and mitigating risks.
What sets specialised freight apart from general services is the emphasis on careful handling, from loading to delivery. In industries like healthcare, tech, and events, any mishandling can lead to serious financial or reputational damage. As such, specialised vehicles and strict handling protocols are essential to prevent issues like damage, delays, or spoilage of sensitive goods.
A Premium for Precision
Naturally, the higher level of care and attention in specialised freight comes at a premium. Air freight, for example, is often chosen for its speed and security but is infinitely more costly than standard options. Still, the investment is worth it when failure isn’t an option—clients pay more for the assurance that their cargo will arrive safely and on time, without compromise.
In the world of specialised freight, service quality is paramount. Whether it's transporting fragile goods or meeting strict delivery windows, logistics providers like INH Transport succeed by offering more than just transport—they deliver reliability and trust.
Find out if you need specialised freight services by getting in contact with us below:
6. Interstate Freight: What to Consider When Shipping Across State Lines
Interstate freight is far more than just a matter of moving goods from one state to another; it’s a complex, carefully orchestrated process shaped by strict regulations and unique logistical challenges. From weight limits and driver hours to vehicle safety and emissions standards, every element of interstate freight is governed by a web of laws that demand precision and planning. It’s a world where even the smallest shipment can involve a surprising degree of complexity.
Consider a recent shipment we managed—a single pallet travelling from Sydney to Darwin. On the surface, it sounds like a simple task. However, when you factor in Darwin’s 42-hour distance by road and the need for multiple stages of loading and unloading, what appears to be straightforward, quickly becomes a logistical puzzle. Unlike containers that can easily be loaded onto trains, pallets require more delicate handling and can’t simply be transferred from one vehicle to another without risk. This extra handling not only raises costs but also increases the chance of damage.
The true challenge in interstate freight lies in balancing efficiency, cost, and reliability. Working with multiple freight forwarders might reduce expenses, but each transfer point adds risk. If something goes wrong, such as cargo damage, determining which of the multiple parties is responsible can become nearly impossible. A high-quality freight provider, however, manages these complexities by reducing the number of handovers and providing seamless service across state lines. This isn’t just about cost—it’s about ensuring your cargo arrives in perfect condition, with minimal disruption.
Road trains, an iconic feature of Australian long-haul transport, play a significant role in this landscape. These multi-trailer giants dominate specific routes, creating a near-monopoly over long-distance freight corridors. While they are cost-effective, their focus on efficiency often comes at the expense of customer service. For those who prioritise communication and oversight, it’s usually advisable to work with a professional freight forwarder who can manage these relationships on your behalf. The reality is that the cheaper your freight service, the less visibility and oversight you will have over the process.
"A high-quality freight provider manages these complexities by reducing the number of handovers and providing seamless service across state lines. This isn’t just about cost—it’s about ensuring your cargo arrives in perfect condition, with minimal disruption."
Another factor to consider is the inherent risk of long-distance freight. The vast and remote stretches of road between cities like Sydney and Darwin come with their own challenges. A semi-trailer breakdown in the middle of the red-dusted outback can mean significant delays. This is where smaller vehicles, like our heavy rigid tautliners, shine. Their manoeuvrability and ease of repair make them a practical choice for certain freight tasks, reducing downtime in the event of an issue. Of course, we’re a little biased—we love our tautliners for their reliability in tough conditions.
At its core, interstate freight is about making informed choices that balance cost, timing, and reliability. The longer the journey, the higher the stakes. Whether it’s road trains or smaller vehicles, understanding the trade-offs will help ensure your freight reaches its destination safely and on time.
Bonus Topic: Freight on Board (FOB)
While you might usually think about freight in terms of trucks rumbling down highways, there’s another key concept that every Australian importer and exporter should know: Freight on Board (FOB). FOB determines the point at which the responsibility for goods transfers from the seller to the buyer. It dictates when the seller’s obligations end, and the buyer takes over, covering all subsequent costs and bearing the risks associated with shipping.
Consider this: if an Australian company imports machinery from China under "FOB Shanghai," the buyer takes responsibility as soon as the goods are loaded onto the ship in Shanghai. From that point, the buyer covers all costs, including freight, insurance, and unloading fees at the Australian port of arrival, whether it’s Melbourne, Sydney, or Brisbane. Conversely, "FOB Destination" terms mean that the seller is responsible for all these costs until the goods reach the buyer’s location. These distinctions are essential when negotiating contracts, as they affect the total landed cost of goods and can significantly influence your pricing and profit margins.
For Australian businesses, understanding FOB terms also involves grasping the associated insurance requirements. Under "FOB Origin," the buyer must secure adequate insurance for the goods while in transit. If importing, the goods must be covered from the point of departure overseas to their arrival in Australia. Conversely, "FOB Destination" means the seller remains responsible for insuring the goods until they reach their final destination.
FOB terms also impact compliance with Australian laws. The Australian Border Force (ABF) requires accurate documentation to determine when cost responsibility shifts between parties. Misunderstanding FOB terms can lead to delays, fines, or additional costs during customs clearance. Ensuring correct declarations under the Customs Act 1901 is critical for avoiding these pitfalls and ensuring a smooth import process.
"FOB determines the point at which the responsibility for goods transfers from the seller to the buyer"
Moreover, when importing goods to Australia, businesses need to be aware of additional costs, such as terminal handling fees, port service charges, and quarantine inspection fees. For example, the Port of Melbourne, one of Australia’s busiest, processes over 3.2 million TEUs annually, and importers may encounter costs like Wharfage Fees or Container Examination Facility fees.
Currency fluctuations are another factor that can significantly impact FOB arrangements. When goods are paid for in foreign currency, any changes in exchange rates can affect the total costs. This is particularly relevant for Australian importers and exporters working with overseas suppliers or customers.
Understanding FOB terms and their implications helps Australian businesses negotiate more effectively, manage risks, and comply with relevant regulations, such as the Biosecurity Act 2015 and the Competition and Consumer Act 2010. Using the correct FOB terms in contracts and shipping documents can save money, reduce delays, and ensure smoother transactions.
For those navigating the complexities of international shipping, mastering FOB terms is essential to maintaining efficient operations, protecting profit margins, and ensuring compliance with Australian and international laws.
As you consider your next steps in logistics, knowing there’s a team ready to support your business’s unique needs can make all the difference. Learn everything you need about freight companies by visiting our website.
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