Commodity Freight Costs
Finished steel freight costs from a steelworks to a client – as well as steelmaking raw material transport costs – typically make up a significant proportion of the total cost of any steel shipment.
SteelOnTheNet now offers site visitors a service for estimating these shipping costs between any source and any destination around the globe.
To see an example of the outputs provided, please see assessments below which describe Q1 2011 freight transport costs for some illustrative commodity movements.
Similar shipment cost analyses can be provided for a fixed cost of US$60 per movement. To request your cargo cost calculation, click freight cost.
| Cost Item | Unit | Result | ||
|---|---|---|---|---|
| Product | Metallurgical coal | |||
| Origin country | USA East | |||
| Origin location | Hampton Roads | |||
| Destination country | Brazil | |||
| Destination location | Tubarao | |||
| Cargo Route | In stockyard at port of Hampton Roads, USA; load to 70,000 dwt ship; ship to Tubarao, Brazil; unload to stockyard. | |||
| Value ex works | US$/t | 200.00 | ||
| Ocean freight – total | US$/t | 12.20 | ||
| Barge – origin area | US$/t | 0.00 | ||
| Barge – destination area | US$/t | 0.00 | ||
| Rail – origin area | US$/t | 0.00 | ||
| Rail – destination area | US$/t | 0.00 | ||
| Truck – origin area | US$/t | 0.00 | ||
| Truck – destination area | US$/t | 0.00 | ||
| Handling – origin area | US$/t | 0.99 | ||
| Handling – destination area | US$/t | 1.16 | ||
| Insurance – origin area | US$/t | 0.17 | ||
| Insurance – ship | US$/t | 0.20 | ||
| Insurance – destination area | US$/t | 0.18 | ||
| Storage – origin area | US$/t | 0.69 | ||
| Storage – destination area | US$/t | 0.70 | ||
| Interest – origin area | US$/t | 0.55 | ||
| Interest – ship | US$/t | 0.65 | ||
| Interest – destination area | US$/t | 0.56 | ||
| Administration | US$/t | 0.50 | ||
| Import duty | US$/t | 0.00 | ||
| Value delivered | US$/t | 218.56 | ||
| Total logistics cost | US$/t | 18.56 | ||
| Detailed transport and handling cost assumptions used | ||||
| Annual quantity | 000 tonnes | 1000 | ||
| Ship size | tonnes | 70 | ||
| Total time in transit | days | 40.3 | ||
| Charter rate – Handymax | US$/day | 20000 | ||
| Charter rate – Panamax | US$/day | 23000 | ||
| Charter rate – Capesize | US$/day | 26500 | ||
| Bunker fuel price | US$/t oil | 434 | ||
| Ocean freight – fuel | US$/t | 4.00 | ||
| Ocean freight – ship hire | US$/t | 7.05 | ||
| Ocean freight – charges | US$/t | 1.14 | ||
| Ocean freight – total | US$/t | 12.20 | ||
| Inland freight – total | US$/t | 0.00 | ||
| Handling – total | US$/t | 2.14 | ||
| Insurance – total | US$/t | 0.55 | ||
| Storage + admin – total | US$/t | 1.90 | ||
| Interest – total | US$/t | 1.77 | ||
| Total excl interest + duty | US$/t | 16.79 | ||
| Total incl interest, excl duty | US$/t | 18.56 | ||
| Value FOB | US$/t | 202.40 | ||
| Value for import duty | US$/t | 215.96 | ||
| Import duty rate | % | 0.0 | ||
Data as of Q1 2011.
Elements of cargo transport cost can include stockyard loading and unloading charges; truck, rail or sea transport costs (including the cost of fuel and vessel hire), handling and storage charges; insurance, interest and duty.
A transport cost assessment for any specified shipment† of iron ore, scrap, ferro-alloys, coal or steel between locations A and B that covers these and other cost items can be provided by SteelOnTheNet for just US$60 per movement. To request further support with logistics costs, press the button below or click on transport cost. Advance payment will be required for this service. Cost calculations are typically sent out by email within 24 hours of fund receipt.
New in 2025: all steel freight cost analyses now include indicative estimates of CO2 emissions per journey, enabling you to compare CO2 output from two or more different routes.
†: A discount of 10% is available for orders of 20 movements or more.