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The seven are: the base rate, the chargeable weight, the fuel levy, tail lift (tailgate) fees, residential fees, failed delivery and waiting fees, and extra handling. Lay out each carrier's quote as a row in a basic grid, with these seven as the columns. Fill every cell. A blank cell is a question for the carrier.

1. The base rate and what it covers

Ask what the base rate is charged on. It may be per kilogram, per pallet or per cubic metre. Two quotes in different units cannot be compared until you convert them to the same one. Use your real consignment: its true weight, its real size and its pickup and drop-off postcodes.

Also ask whether GST is in the price. Some quotes show it and some do not. A ten per cent difference can come from this alone.

2. Chargeable weight and cubic weight

Carriers do not always bill on the weight on the scale. Many bill on the greater of actual weight or cubic weight. Cubic weight prices the space your goods take up on the truck.

Australia Post explains the maths on its own business page. You multiply length, width and height in metres, then multiply by a conversion factor. Australia Post uses 250 kg per cubic metre. Its example is a parcel of 50 cm by 30 cm by 40 cm. That is 0.06 cubic metres, which gives a cubic weight of 15 kg. If the parcel weighs 10 kg on the scale, the charge is based on 15 kg.

Other carriers may use a different factor. Ask each one for its number in writing. A higher factor means a higher chargeable weight for light, bulky goods. Run the same box through both quotes and compare the chargeable kilograms, not just the rate.

Source: Australia Post, "How to calculate cubic weight" (auspost.com.au business ideas).

3. The fuel levy

The fuel levy is usually a percentage added on top of the invoice. It is not part of the base rate. It can change from time to time, so a quote that says "plus fuel levy" is not a final price.

Ask three things. What is the levy today? How often does it change? What is it applied to? In one published carrier schedule, many of the extra fees below are shown as a dollar amount "plus fuel levy". That means the levy also lifts the cost of the extras. Compare the levy on the same basis in both quotes.

4. Tail lift (tailgate) and residential fees

A tail lift is a hydraulic platform on the back of a truck. If your pallet must be lowered to the ground, you may pay a tail lift fee at pickup, delivery or both. Check whether it is charged per pallet or per job, and whether it applies at one end or both.

Residential fees are a separate charge. One carrier schedule defines a residential address as a home or private residence. It includes a business run from a home. In that schedule, farms and apartments count as residential too. So the word "residential" can cover more than you expect. Tell each carrier exactly where the goods are going, and ask whether the address is treated as residential.

Source: Freight Exchange help centre, "All Carrier Surcharges" guide (help.freightexchange.com.au).

5. Failed delivery, waiting time and extra handling

The same carrier schedule lists charges that many buyers miss until the invoice arrives. These include a fee when a truck is sent but the goods cannot be delivered, a fee for booking a delivery time slot, an hourly charge for waiting, a fee per pallet for hand unloading when no equipment is on site, and charges for oversize or overweight pallets.

You control most of these. Check that someone will be on site. Check that there is room to unload. Give the carrier the true size and weight. A cheap quote that assumes perfect conditions can turn costly on the day. Ask each carrier which of these fees it charges and what each one costs, then add them to your table as "possible" costs.

Source: Freight Exchange help centre, "All Carrier Surcharges" guide (help.freightexchange.com.au).

6. Your own duty on the road

Price is not the only thing to compare. If you send or receive goods by heavy vehicle, you may be a party in the Chain of Responsibility. The National Heavy Vehicle Regulator (NHVR) says a good rule of thumb is that a business sending or receiving goods by heavy vehicle is a party. Consignors and consignees are both on its list.

The amended duties under the Heavy Vehicle National Law took effect on 1 October 2018. The primary duty is to ensure the safety of your transport activities, so far as is reasonably practicable. You are a party because of the job you do, not because of a title or a contract clause.

In plain terms, ask each carrier how it manages safety, and set loading and delivery times that a driver can meet safely. A quote that depends on rushed loading is not a bargain.

Sources: National Heavy Vehicle Regulator, "Parties in the CoR" (nhvr.gov.au); National Heavy Vehicle Regulator, "Changes to Chain of Responsibility" (nhvr.gov.au).

Put it together

Build one table with the seven line items as rows and each carrier as a column. Use the same consignment for both. Add the possible extras as a second block. Then compare the total for the case you expect and the total if one thing goes wrong.

The limit of this method: published fees change, and the figures in any guide are examples. Only the carrier's current written terms count.

Sources: Australia Post (auspost.com.au); Freight Exchange help centre (help.freightexchange.com.au); National Heavy Vehicle Regulator (nhvr.gov.au).

About the authorPrepared by the Australian Preferred editors. Corrections: [email protected].

Filed April 19, 2025 · Article library · Methodology