Total Cost of Freight (TCoF)

Procurement & Costs

Total Cost of Freight (TCoF)

The Total Cost of Freight goes beyond base rates to include all transport-related expenses: urgent shipments, penalties, accessorials, detention, and even administrative costs like invoice disputes.

Why It Matters

Looking only at contracted rates hides the true cost picture. Measuring TCoF gives procurement full visibility, typically revealing 8–12% of hidden costs. It enables smarter decisions and better alignment between logistics and finance.

Related Terms & Resources

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