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High transportation costs are driving three main shifts in supply chain strategies. These changes are having a beneficial impact not just on transportation budgets but also on broader supply chain and financial performance.
as per the above question it depend from where the goods are coming from and what is the current cost of fuel in that country, Normally it is calculated from 2% to 10%
The cost of fuel as a percentage of total road logistics cost amounts to 30% of total cost. Road logistics costing consists of fixed cost and variable cost.
This is a very interesting question and the answer will depend on the following variables:
1. Actual freight cost from one point to another point in USD/Ton (This sometimes fixed by the trade associations)
2. Cost of diesel fuel in the country
3. Type of infrastructure in the country ( good road where the trip can be completed quickly)
4. Availability of goods during return journey
Based on above factors, the fuel cost is expected to in the range of seven percent <7%> to Twelve Percent <%> of the freight. It is noted here that cost of diesel fuel vary greatly from country to country.
For Air transportation, the fuel cost as normally pointed out by the Airlines is approx. Thirty percent<%> to Thirty Five percent <%> when the global price was quite high. It might have come down by this time
