Cartage Definition

Cite this article as:"Cartage Definition," in The Business Professor, updated March 13, 2019, last accessed October 25, 2020,


Cartage Definition

Expenses related to freight, loading, and unloading are booked under cartage expenses. These expenses are related to purchase or sale of goods. In this case, goods refer to raw materials, semi-finished goods, consumable items, or already finished goods ready for trading.

When cartage is paid for anything besides trading items, it is recorded under cartage expenses. For example, when paid on machinery, it is referred to as cost of machinery and not cartage expenses.

A Little More on What is Cartage Expense

Cartage expenses can be categorized into:

  • Inward expenses: This is when freight, loading or unloading expenses are incurred on goods purchases.
  • Outward Expenses: This is when freight, loading or unloading expenses are incurred on goods sale.

Treatment of Cartage Expenses in final Accounts

Cartage expenses will be recorded in expenses columns in trading accounts. Inward expenses will be recorded in expenses side of the trading accounts while outward expenses are recorded in expenses side on a profit and loss statement.

References for Cartage

Academic Research on Cartage

  • The cartage industry in New York, Reuter, P. H. (1994). This paper examines the cartage industry in New York. It examines cartage in accounting and how it has helped streamline the working of freight companies.
  • The moral grounds of critique: Between possessive individuals, entrepreneurs and big men in New Ireland, Sykes, K. (2007, November). In Anthropological Forum (Vol. 17, No. 3, pp. 255-268). Routledge. This paper looks at the moral bases of critiquing the possessive individual. It does this by analyzing small businesses in New Ireland. The paper shows that there is instability, to some extent, in the possession concept.
  • What’s Happening to Entrepreneurship?, Bandeen, M. (1994). Canadian Woman Studies, 15(1). This paper takes a look at different businesses in Canada and how these businesses interact with the environment, consumers and raw goods. It looks at the role of entrepreneurs in corporates.
  • Inland container terminal—function and rationale, Hayut, Y. (1980). Maritime Policy and Management, 7(4), 283-289. This paper observes that, pressures on urban water front lands and the increasing demand for backup areas and the changes observed in cargo distribution have resulted in relocation of port functions and creation of inland container terminals. This paper examines the functions of these new terminals.
  • English Cartage-Practice and Our Terminal Trucking, Horner, F. C. (1923). (No. 230027). SAE Technical Paper. This paper looks at cartage expenses handling in different companies in Britain. It examines the practices carried out by different freight companies and offers a simple model to simplify the process.
  • Corporations Whose Charters Have Become Void, Swearingen, V. C. (1937). Mich. St. BJ, 16, 149. This paper analyzes the results of another paper, ‘Dissolution of Michigan Corporations’ in which the author shows 12 ways through which corporations can be dissolved. This paper examines different ways in which corporation’s charters become void.
  • Utilisation a transport issue in distribution process of consignments on example a delivery company, Ĺšladewski, M. (2018). (Doctoral dissertation, ZakĹ‚ad Podstaw Budowy UrzÄ…dzeĹ„ Transportowych). This paper views cartage as a transport plan in which parcels move across the world. It offers a description and a model on how freight companies can reduce costs and increase income when sending goods across the world.
  • When is a profit made?, Walton, S. (1919). Journal of Accountancy (pre-1986), 28(000002), 155. This paper explores the cartage practice to identify situations in which freight companies reduce costs and increase income.
  • Motor carrier road driver recruitment in a time of shortages: What are we doing now?, Dobie, K., Rakowski, J. P., & Southern, R. N. (1998). Transportation Journal, 37(3), 5-12. In this study, the author examines the transportation of parcels and how the recruitment of drivers affect the cartage process. It shows ways in which different companies ensure they have all needed resources to make the process smooth.
  • Transport and information systems: A case study of EDI deployment by the air cargo industry, Button, K. J., & Owens, C. A. (1999). International Journal of Transport Economics/Rivista internazionale di economia dei trasporti, 3-21. In this paper, the author examines the application of electronic data exchange, EDI, in institutional context and its strengths and weaknesses as related to the economic modeling. The paper samples air-cargo companies in Washington DC.

Was this article helpful?