How do I identify the biggest cost drivers in our refrigerated or frozen freight?
The most reliable way to identify the largest cost drivers in refrigerated and frozen freight is to measure performance and cost metrics across your cold chain distribution network. Instead of evaluating transportation invoices alone, logistics teams should analyze how operational factors, such as handling, delivery requirements, and shipment density, affect the true cost of moving temperature-controlled freight.
Several areas typically drive the majority of cold chain transportation costs:
Freight utilization and shipment size – Partial pallet shipments that move independently through standard LTL networks often incur a higher per-pallet cost because refrigerated trailer capacity is not fully utilized.
Handling events and terminal transfers – Each time freight is unloaded, staged, or transferred between trailers, labor costs increase, and the risk of product damage or temperature exposure rises.
Accessorial charges – Fees such as appointment scheduling, detention, liftgate service, re-delivery attempts, and inside delivery can accumulate across shipments and significantly increase total transportation spend.
Delivery constraints and scheduling – Grocery distribution centers and foodservice warehouses often operate on strict receiving windows. Missed appointments or dock congestion can cause delays that increase costs.
Lane density and shipment patterns – When shipments move to many destinations without consolidation planning, freight may travel inefficient routes that increase both transit time and cost.
Tracking key logistics metrics, such as cost per pallet, on-time performance, dwell time, temperature events, and claims rates, helps supply chain leaders pinpoint where these costs originate and identify opportunities to improve efficiency.
A deeper breakdown of the metrics and reporting frameworks used to analyze cold-chain performance is provided in Measure What Saves Money: KPIs and Visibility for Cold Chain LTL Consolidation Programs.