GlossaryEN1 min readUpdated: Jun 22, 2026
transport costs
Transport costs cover all expenses incurred in moving cargo from origin to destination: driver wages, fuel, vehicle depreciation, toll fees, insurance premiums, and terminal or port charges.
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Source: https://wirtschaftslexikon.gabler.de/definition/transportkosten-52087
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
Transport costs cover all expenses incurred in moving cargo from origin to destination: driver wages, fuel, vehicle depreciation, toll fees, insurance premiums, and terminal or port charges. The cost structure varies considerably by mode—road transport is typically priced per kilometre or hour, sea freight per container or tonne, and air freight by chargeable weight. For customs valuation purposes, precise allocation of transport costs by leg is essential: CIF values and resulting import duties depend on which freight charges are included up to the point of importation. Shippers and forwarders break down these components to manage landed costs and identify where efficiencies are achievable.
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