How to Calculate the International Rail Freight Costs?

How to Calculate the International Rail Freight Costs?

2022-11-25 13:48:19

1. Calculation principles of rail freight costs


(1) The rail freight costs of the sending country and the arriving country shall be handled in accordance with the domestic regulations of the country where the railway is located.


(2) The rail freight costs of the transit country shall be calculated according to the unified cargo price regulation on the day of carriage, and shall be paid by the consignor or consignee. If the goods are transported between a country that participates in the International Merchandise Association and a country that does not participate in the International Merchandise Association, the freight of the railways of the countries that do not participate in the International Merchandise Association can be calculated according to another intermodal transport agreement to which they participate.


For intermodal goods exported from China, the common delivery conditions generally stipulate that they shall be delivered on the seller's vehicle. Therefore, the Chinese side is only responsible for the transportation cost to the exporting border station. However, the combined transportation of imported goods will have to bear the transit transportation fee and the cost of the Chinese railway section.


2. Calculation of transit rail freight costs


Transit freight is calculated in accordance with the provisions of the Uniform Price, and the calculation procedure is:


(1) According to the rail freight transportation route stated on the waybill, find out the process mileage of each country in transit in the transit odometer.


(2) According to the name of the goods, find out the applicable freight rate and chargeable weight standardization in the classification table of the goods name.


(3) In the freight calculation table for slow freight, find out the applicable freight rate based on the freight rate class and the total transit mileage.


The calculation formula is: basic freight amount = freight rate of goods × chargeable weight

Total freight = basic freight amount × (1 + insurance bonus rate)


The mark-up rate refers to the percentage increase of the total freight amount based on the basic freight amount according to the type of consignment. The freight for express cargo is added 100% for slow freight, and 100% for less-than-carload cargo after 50%. Attached to the passenger train to transport the whole train fee, plus 200%.


3. The procedures of calculation of rail freight costs in China


(1) Determine the freight mileage between the stations according to the railway freight freight odometer. Generally, it should be determined based on the shortest route, and the mileage from the border station to the border line needs to be included in the calculation.


(2) According to the name of the goods listed on the waybill, look up the freight rate sub-code table to determine the applicable freight rate number.


(3) Find the applicable freight rate in the freight rate table according to the freight mileage and freight number.


(4) The chargeable weight is multiplied by the freight rate to obtain the domestic freight of this batch of goods. The calculation formula is: freight = freight rate × chargeable weight.


As one of the trustworthy railway transportation companies, SHANGHAHI REALHONG INTERNATIONAL LOGISTICS CO., LTD. can provide you with comprehensive railway freight services at a competitive train freight cost. We can also provide you with multimodal railway transportation services.

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