Why put a rate in writing
A rate agreed on the phone is remembered differently by each side a month later. A written quotation fixes the lane, the vehicle, the rate and — most usefully — what the rate does not cover. It is also what a purchase department needs before it can add you as a transport vendor.
Rate basis, and when to use each
| Basis | Fits | State alongside it |
|---|---|---|
| Per trip | Full truck loads on a regular lane | Vehicle size and the maximum load |
| Per tonne | Bulk goods such as cement, steel, grain or aggregates | Minimum chargeable weight and whose weighbridge slip counts |
| Per km | Irregular routes and multi-point deliveries | Whether empty return kilometres are charged |
| Per day | Vehicles stationed with a project or plant | Hours and kilometres included per day, and the driver’s allowance |
Terms worth writing down
- Validity. Diesel moves. Give a date after which the rate has to be reconfirmed.
- Free time and detention. How long the vehicle waits at loading and unloading without charge, and the rate per day after that.
- Loading and unloading. Who arranges and pays for labour, cranes or forklifts.
- Tolls and entry charges. Included in the rate, or billed at actuals with receipts.
- Insurance and risk. Whether goods travel at owner’s risk and who insures them in transit.
- Payment. Advance at loading, balance against proof of delivery, and the credit period if any.
- GST. Whether the rate is exclusive of GST and who is liable to pay it.
Price the lane before you quote it
A quotation is only as good as the costing behind it. Use the trip cost calculator to find the break-even freight for the lane, including the empty kilometres on the way back, and quote above it. Once the customer confirms, issue the lorry receipt at loading.