Green Bell Co., Ltd. has released a free research paper titled "Definition and Explanation of Appropriate Costs in the Trucking Industry (How to Calculate Fair Freight Rates)" with the aim of fostering a proper understanding and healthy growth of the transport business. The paper systematically presents the economic structure of the transport industry to stakeholders, including transport operators and shippers.
The company has classified logistics expenses into the following seven categories, defining a model that allows shippers to easily understand the cost structure when freight rates are presented:
1. Labor costs (driver salaries and social insurance)
2. Fuel costs (diesel and acquisition taxes)
3. Vehicle costs (depreciation and lease fees)
4. Insurance premiums
5. Repair and maintenance costs
6. Expressway tolls
7. Selling, general, and administrative (SG&A) expenses (indirect costs)
This paper places special emphasis on the optimization of "depreciation" and "SG&A expense ratios." It analyzes the impact that the difference between the statutory useful life of a truck and its actual economic useful life has on profitability, presenting a revenue model based on a 10-year depreciation period. Furthermore, it highlights the importance of establishing a standardized accounting benchmark to ensure that freight rates do not fall below transport costs by 2028.
Alongside the publication of the paper, the company has launched a transport cost calculation app. By encouraging the visualization of costs in the field, Green Bell aims to provide a management support framework for businesses striving to secure appropriate profit margins and build sustainable business models.