GlossaryEN1 min readUpdated: Jun 22, 2026

Shipping cost calculation

Before placing a shipment order, shippers and freight forwarders run a shipping cost calculation to determine what the transport will actually cost.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/Shipping_and_handling

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Definition & Explanation

Before placing a shipment order, shippers and freight forwarders run a shipping cost calculation to determine what the transport will actually cost. It factors in gross weight and volumetric weight—whichever is greater applies—along with distance, service level, and surcharges such as fuel adjustment factors, hazmat fees, and remote area delivery charges. The result feeds directly into customer quotes, internal cost allocation, and carrier rate comparisons. The calculation is the process; the freight rate is its output.

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Shipping cost calculation

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