Difference between Taxi Trucks, Point to Point and Per Pallet Rate
B doubles
Tautliners
Why is the price quoted for freight almost never the final price you pay? The answer often lies in the mysterious "plus plus" – a vague and frustrating phrase that leaves many, especially those new to logistics, wondering what it means and why it keeps driving up costs.
On the surface, it seems like a straightforward problem to fix—just offer clear pricing. However, when you ask freight companies why transparency is so elusive, you’ll often hear a range of explanations detailing the complexities that make streamlining quotes more challenging than they appear.
In this article, we’ll break down the hidden complexities behind freight quotes and why so many companies struggle to provide simple, upfront pricing. Understanding these factors can turn confusion into clarity, giving you more confidence when dealing with freight companies.
What does FTL and LTL mean?
When requesting a freight quote or reviewing a carrier’s rate card, you’ll often come across terms like Full Truckload (FTL) or Less Than Full Truckload (LTL). In some cases, especially with containers, these are referred to as Full Container Load (FCL) and Less Than Container Load (LCL).
In the fast-paced world of freight quotes, one of the first considerations for freight companies is whether your shipment requires an entire truck. This decision shapes a range of transport needs and associated costs from the outset. For instance, when a full truck is needed, there’s limited flexibility in pricing, as the truck is fully dedicated to your goods, leaving no room for the freight company to share the space with other customers. In contrast, a less than full truckload offers more room for negotiation, but it also introduces other factors, such as coordinating delivery schedules with other shipments sharing the same truck.
This careful balancing of space optimisation and timely deliveries is what drives the price differences between FTL and LTL, making it essential to understand these options when negotiating for the best value.
The process becomes more confusing when you start to question what freight companies really mean by a "full truckload," especially given the variety of truck sizes. A good reference point, though, is often based on the number of pallets—commonly 12, 24, or 44. These figures generally reflect the capacities of heavy rigid tautliners, semi-trailers & B doubles.
“But why do freight companies focus on pallets?”
The reason is simple: most freight, whether general or specialised, is prioritised when it's palletised. Pallets are an efficient and standardised way to stack and transport goods, ensuring both stability and spacial optimisation during transit. By using pallets, freight companies can easily calculate how much room is needed in a truck and adjust pricing accordingly.
For customers, understanding pallets can be key to navigating freight quotes. Knowing how many pallets your shipment will take up helps freight companies estimate costs and determine whether a full truckload or a shared load is more suitable. This insight not only makes the quoting process smoother but also gives you a clearer picture of what you're paying for.
Read our overview of everything you need to know about the freight and transport industry.
What information is needed for a freight quote?
When you call or enquire with a freight company, it’s best to have all your requirements ready to ensure you receive an accurate quote. There is nothing worse than thinking you’ve received an acceptable offer only to have the allocator advise you that your cargo is overweight or won’t fit in the truck.
So these are the key 6 things you need before picking up the phone.
1.Number of Pallets
Freight companies love nothing more than working with customers with palletised cargo. So, by advising the company that you intend on moving pallets or have the capacity to palletise your cargo will ensure your quoting time gets cut right down the middle. Most standard pallets are 1165 mm x 1165 mm with most heavy rigid tautliners having a clearance height of 2400mm.
2.Weight of each pallet
The weight of your shipment is crucial for selecting the right vehicle and ensuring compliance with legal load limits. In Australia, trucks are subject to strict weight regulations, and exceeding these limits can result in fines, delays, or additional costs for offloading excess weight.
Choosing the Right Vehicle: The total weight of your shipment helps freight companies select the most suitable vehicle. For example, a heavy rigid tautliner might be maxed out with 14 pallets weighing 14 tonnes, but a semi-trailer could handle up to 24 pallets with additional capacity, often making it a more cost-effective option.
Legal Compliance: Heavy Vehicle Safety Stations (HVSS) regularly check truckloads on Australian highways to ensure weight compliance. Providing accurate weight information ensures your shipment stays within legal limits, avoiding fines or transport delays.
3.Dimensions of each pallet
While goods come in all shapes and sizes, transport requires a certain level of uniformity, which is where standard pallets come into play. The most commonly used pallet size in Australia is 1165mm x 1165mm, and most heavy rigid trucks allow for a 2.4m height clearance.
Freight companies will also need to know:
Are your pallets stackable? Stackable pallets allow the freight company to make the most of the available space, potentially reducing your freight costs by improving spatial efficiency.
Are your pallets oversized? While your goods may fit on a standard pallet, it’s important that their dimensions stay within the pallet’s boundaries. Oversized pallets disrupt the vehicle’s space optimisation, reducing the number of pallets that can be transported. If your pallets are oversized, providing this information upfront ensures your quote will be accurate and avoids surprises later.
4.Flexibility in Delivery Times
Flexibility in your delivery schedule can lead to significant cost savings. Freight companies work with tight schedules and planned routes, so the more adaptable your timeline, the easier it is for them to fit your shipment into an existing route.
Cost of Urgency: If your shipment requires express delivery, expect your quote to increase by 20-50%, depending on the timeframe. Express services require dedicated vehicles and faster turnaround, which adds to the overall cost.
Maximising Savings: By allowing more flexible pickup and delivery windows, freight companies can schedule your shipment alongside other deliveries, which helps reduce costs. Off-peak hours or early morning pickups may also offer cost benefits, as freight companies aim to avoid congested periods.
Negotiation Tips
Advise the freight company that they can deliver after business hours.
Allow "authority to leave" for residential deliveries.
Confirm whether they offer flexible pickup times to accommodate your needs.
These small adjustments can give you more leverage in negotiations and help reduce costs while ensuring timely delivery.
5.Loading and Unloading: Cost Implications of Fork On, Fork Off, Tailgate Service, or Hand Unload
The method you choose for loading and unloading goods can have a direct impact on your overall freight costs. Different techniques require varying levels of equipment, manpower, and time, all of which affect the final pricing of your shipment. Here’s a breakdown of the cost considerations for each method:
Fork-On Fork-Off (FOFO)
Using forklifts at both the pickup and delivery points (FOFO) is generally the most cost-effective option when both sites are equipped with forklifts. Forklifts allow for quick and efficient handling of palletised goods, reducing the amount of time the truck spends on-site.
Cost Impact of FOFO: Since this method relies on minimal manual labour and speeds up the process, it tends to be the least expensive option. The reduced time spent loading and unloading translates to lower overall costs. However, it's important to confirm that both pickup and delivery points have forklifts available to avoid complications or delays.
Tail Lift Service
A tail lift (or tailgate) service is required when forklifts are not available at the pickup or delivery location. The tail lift allows the goods to be raised and lowered from the truck, but this service typically adds to the overall cost due to the slower nature of the process.
Charges for Tail Lift Use: Freight companies often charge extra for the use of the tailgate, typically due to the additional time required for loading and unloading using the hydraulic platform. The extra charge is meant to cover this additional time and the wear and tear on the equipment. On average, a tail lift service could increase costs by a fixed amount or a percentage based on the total job, depending on the freight company’s pricing structure.
Hand Unloading
Hand unloading, which requires manual labour to move goods off the truck, is the most expensive and time-consuming method. It’s usually only used when forklifts and tail lifts aren’t feasible, such as in residential areas or locations with limited access.
Cost Impact of Hand Unloading: Freight companies often charge significantly more for hand unloading due to the additional manpower and time required. This method can increase your overall costs by 20-50% compared to mechanical options like FOFO or tail lifts. The longer time spent on-site, coupled with the need for multiple workers, makes this method the most expensive. It is important to plan accordingly if hand unloading is necessary, as the costs can quickly add up.
6. Height Clearance
Height clearance is an often overlooked but critical detail in freight logistics, especially when dealing with large vehicles like heavy rigids and semi-trailers. Most trucks have a height of around 4.3 metres, but some urban loading docks or residential areas may not accommodate such large vehicles.
Low-Clearance Areas: If your pickup or delivery location has restricted height access (such as underground parking, low bridges, or loading docks), the freight company needs to know. These restrictions can necessitate smaller vehicles or manual offloading, which increases time and cost.
Preventing Delays: By communicating height clearance restrictions upfront, you ensure the freight company assigns the right vehicle from the start, preventing delays, manual handling fees, and added costs.
Learn more about EVERYTHING you need to know about working with a freight company
Difference between Taxi Trucks, Point to Point & Per Pallet Rate
Taxi Truck Rates: The Rental Model
Taxi truck services in Australia, such as those provided by Transdirect and Just Freight, are priced similarly to car rentals, where costs are based on truck size and the duration of the service. Most freight companies offer a minimum hire period of 2 to 4 hours, and the truck is booked with a driver for the allocated time. This is particularly beneficial for customers who require multiple deliveries in a single day. For example, using a medium-sized truck for around 3 hours typically costs between $100 to $150 per hour depending on the city and service. This flexible model suits businesses that need frequent deliveries but want more control over timing and routes.
Point-to-Point Delivery: Direct, Metropolitan Coverage
Point-to-point delivery is the go-to solution for metropolitan deliveries, covering one pickup and one drop-off. Companies like TNT and FreightQuote factor in driver wages, fuel consumption, and distance covered. For example, a local delivery in Sydney might start around $80 for short trips, with prices increasing based on distance and vehicle type.This quoting method is ideal for straightforward urban deliveries, offering predictable pricing for businesses operating within city limits.
Pallet Rates: A Preferred Option for Regional and Interstate Transport
Pallet rates are a common pricing method used for regional and interstate freight across Australia, particularly for heavier loads. Companies such as Transdirect and TNT offer palletised shipping, where the price is calculated based on several factors, including weight, dimensions, and whether the pallets are stackable.
Pricing Structure for Pallet Transport: For example, shipping a standard pallet (1165 mm x 1165 mm) from Sydney to Melbourne typically ranges between $120 and $160 per pallet. The cost depends on the size of the shipment, the weight of the pallets, and the urgency of the delivery. Faster services naturally incur higher costs
Cost Benefits for Larger Shipments: Pallet transport is often a more practical solution for bulk shipments, particularly those exceeding 70kg or involving non-stackable pallets, which require more space. In these cases, pallet consolidation—where multiple clients’ shipments are combined—can lead to significant cost savings. This approach allows freight companies to optimise trailer space, often offering up to 30% savings for larger shipments, especially if delivery timelines are flexible.
Stackability and Space Optimisation: Stackable pallets allow freight companies to better utilise the available space in their trucks, which can further reduce costs. However, non-stackable pallets or irregularly shaped goods that take up more room may incur higher rates due to the decreased efficiency in trailer space usage.
Why am I being charged fuel levy?
When you receive an invoice from a freight company, you may notice that a fuel levy has been charged in addition to your service fee. This levy accounts for the fluctuations in fuel prices and is levied so that freight companies can operate without need to neogtate the fuel prices with customers every day.
While fuel levies are commonly calculated based of the terminal gate price (TGP) of diesel, most freight companies have been known to apply a rather arbitrary percentage based on the size of the vehicle in use. In our experience large B-Doubles typically charge around 25% to 30% of the freight cost while heavy rigids tend to have lower levies often around 15 - 20% due to their lower fuel consumption.
Learn more about EVERYTHING you need to know about working with a freight company
Understanding Transport Costs Beyond Fuel Levies
While fuel levies account for fluctuating fuel prices, there are several other significant costs in freight operations that affect pricing. Driver wages are a major factor, with Australian truck drivers typically earning between $27 and $35 per hour, depending on experience and the type of vehicle they operate. Additionally, maintenance costs for trucks—covering everything from engine tune-ups to tire replacements—can make up 5-10% of operating expenses.
Then there’s the cost of vehicle registration and upkeep, which can be surprisingly high. For example, registering a B-Double truck with RMS can cost over $10,000 annually.
This, combined with road tolls and regular inspections, adds up quickly.
It’s important to remember that freight companies operate with relatively thin margins, often between 3-8%. With rising operational expenses and competitive market pressures, understanding these costs helps explain why charges like fuel levies, driver wages, and vehicle maintenance fees are passed on to customers. Knowing this can give you a clearer picture of the true cost of transport and why rates might vary from one service to another.
Why do Semi-Trailers Cost More Than Heavy Rigid Tautliners?
It might be surprising, but larger vehicles like semi-trailers, including B-Doubles, often come with lower freight rates compared to smaller trucks like heavy rigid tautliners. You’d expect a bigger vehicle to cost more due to its size and fuel consumption, but in reality, it’s the opposite. Semi-trailers, with their higher capacity, can move more goods in a single trip, which lowers the overall cost per pallet when compared to smaller, less efficient vehicle
For example, a standard B-Double can transport up to 34 pallets while a heavy rigid tautliner carries only 12 to 14 pallets.
In contrast, heavy rigid vehicles are commonly used for shorter, less efficient routes, where time-sensitive or smaller deliveries are more practical.
Should you ask your freight provider if your goods will be transported by a semi-trailer?
Absolutely. If your freight qualifies for transport in a semi-trailer, you could negotiate better rates, as you’d be benefiting from the economies of scale that these vehicles provide.
However, it’s crucial to consider that larger vehicles like B-Doubles might not always be suitable for your pickup or drop-off locations, especially in areas with limited access. In such cases, freight companies often use a "hub-and-spoke" model. This involves a smaller truck collecting the goods and delivering them to a depot, where they’re transferred to a semi-trailer for the long haul. Upon arrival at the destination state, the goods may be transferred again to a smaller vehicle for final delivery. While this approach maximises transport efficiency, there’s a trade-off: multiple handling points.
Each time your goods are transferred between vehicles or depots, there's a higher risk of damage or delay. Additionally, with more parties involved, liability issues can become more complicated, even with comprehensive cargo insurance in place. Each transport leg introduces another layer of accountability, which can slow down claims processes in the event of damage or loss.
Read more about the requirements for sensitive freight
That said, for large shipments covering long distances, semi-trailers remain the most efficient and economical option, provided that logistics like access to pickup and drop-off locations are carefully considered.
How to quote freight
By now, you’ve probably realised that getting a freight quote can feel more complicated than expected. It’s not just about the distance or weight of your shipment—it involves a deep understanding of your goods, their destinations, their dimensions, and any special loading or unloading requirements. As a customer, it’s important to know that freight companies may tack on additional fees for things like tailgate use, hand unloading, or time spent on-site, leaving you with the dreaded "plus plus" at the end of your bill. To avoid this, it’s crucial to be upfront about your needs, so you can be sure the quote you receive is the total charge, with no unpleasant surprises later on.
It’s also worth noting that not all companies approach quoting in the same way. While some use precise formulas, others simply bid on the job, sometimes in a race to the bottom. We’ve even seen situations where owner-drivers quote below their operating costs just to win a job, later making up for it by staying in rural areas and waiting for more work to bring them home. This can leave customers in the dark about true costs and waiting times.
To give you a better idea of just how varied quotes can be, let’s break down an example:
Number of pallets: 4
Dimensions per pallet (H x W x L): 1.2m x 1.2m x 1.2m
Total weight: 4,000KG
Pickup location: Smithfield NSW
Destination: Mangrove Mountains NSW
Special requirement: Tailgate
Delivery timeframe: Flexible
You might be surprised to find that the bigger, more recognisable brands often quote much higher than smaller, local operators. Sure, their national coverage and track record of reliable service come with a certain level of trust, but it doesn’t always mean the best deal. In fact, these large firms sometimes lack in customer service—just look at TNT, where customer interaction can be minimal and impersonal.
On the flip side, smaller transport companies, like the freight forwarding service example we’ve included, often provide more competitive rates. You’ll see the difference between express and standard delivery is striking, and opting for a smaller operator might save you more than you expect.
Finally, consider a similar scenario from a freight board posting, where the average quote for the job came in at $1,107 across 10 different companies. While service standards, reputation and quality control might be difficult to ascertain during freight boards, this just goes to show how much quotes can vary depending on the provider, and why it pays to shop around.
What does Plus Plus mean in transport?
When freight companies provide a quote with "plus plus," it often refers to additional charges like the fuel levy and GST. While this may seem straightforward, it’s also a subtle sales tactic. Freight companies use this method to present a more appealing base price, leaving out certain costs that will inevitably be added later. This can make their service seem more affordable at first glance compared to others who might include all charges upfront.
Why do they do this? For one, it attracts customers who are price-sensitive. By quoting a lower base rate, companies appear competitive and are more likely to win over clients who are simply looking for the cheapest option. Once the customer is engaged, the fuel levy and GST—common industry standards—are added, making the final price higher than initially expected.
This approach also works as a form of incremental upselling. By separating out the fuel levy and GST, companies can justify these charges individually, often presenting them as unavoidable. This can reduce what’s known as "sticker shock," where the full price might scare away potential customers. Instead, the extra charges are introduced after the customer has shown interest, making them less likely to back out.
Ultimately, this sales tactic is designed to get the customer through the door with a low initial price, then introduce the inevitable additional charges. While it’s common in the industry, being aware of it can help you better navigate quotes and avoid any surprises when it comes time to pay the final bill.
Bonus Topic: Port disbursements
When it comes to transporting goods from the port, we’ve seen firsthand how quickly costs can add up with seemingly minor services. For instance, we've been charged $16.50 just for shrink-wrapping—a process using the same type of plastic wrap you’d find in most kitchens. While it's essential for securing goods during handling, the price can feel steep for something so simple. On top of that, reserving a truck booking slot to pick up our goods set us back $30, just for the privilege of selecting a specific time for loading. These kinds of charges might seem small in isolation, but they can significantly impact your overall logistics costs, especially when layered with other port fees. Understanding these extra costs helps you stay prepared and avoid any unexpected surprises in your final bill.
Learn more about EVERYTHING you need to know about working with a freight company
Thank you for taking the time to read through this comprehensive guide on freight quoting. At INH Transport, we understand how overwhelming it can be to navigate the complexities of pricing, whether it’s managing full truckloads, dealing with port disbursements, or deciphering hidden charges. That’s why we’re committed to ensuring our rates are fair, transparent, and reflective of the true costs involved, without relying on confusing "plus plus" tactics.
Our approach prioritises covering operational costs while maintaining the highest standards of freight management and customer service. We’re here to make sure that you feel confident in your transport decisions, and we look forward to helping you with your next shipment.
For any inquiries or to discuss your transport needs, feel free to reach out to us at info@inhtransport.com.au or call us directly at 0438990388.
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