Below is How To Calculate CPK In Transport In South Africa
CPK(cost per Km) is used worldwide. Transporters in Southern Africa use it to refer to what the truck gets paid per km loaded. Johannesburg to Harare is paid a minimum of R32 000, total for Tri axles, and is an 1121km route. 32000÷1121=R28,54 cpk.
To estimate the fuel cost for a trip you need the trip distance, cost of fuel per liter, and the vehicle’s average fuel consumption. In other words: Divide the total distance (km) by 100. Now multiply the answer by the average fuel consumption, and then multiply this number by the price of fuel (per liter).
Johannesburg to Harare is paid a minimum of R32 000, the total for Tri axles, and is an 1121km route.32000÷1121=R28,54 cpk.
Backload from Harare is US$1000/R14 000 average.
Making it 14000÷1121=R12, 48 cpk. 28,54+12,48=41,02.41,02÷2=20,51 cpk.
So at a turnover of (32000+14000 =R46000)÷(1121×2=2242km) ..a cross-border truck can generate 3 round trips a month edging to R46000X3=R138 000.Now subtract costs include (installments), insurances(Truck insurance, and GIT), fuel, driver trip bonus, driver allowances including food, salaries, tolls, border fees, license, and border delays.
Compare to your turnover on local loads which generally has low cpk but high reliable volume. One could calculate profitability based on turnover vs costs per km depending on the route.
What does CPK mean in transport?
Cost per kilometer contracts is tired supply contracts offered to transport operators.
Under these contracts, tires are charged, usually monthly, to the transport operator based on the number of kilometers traveled by their fleet.