Posted in Operations and Supply Chain Terms, Total Reads: 369
Definition: Revenue Ton Mile
It is a single ton of goods, which is transported for one mile. Revenue ton miles is a unit that is used by transportation companies, for determining the total amount of freight which is shipped by them. Railroads determines revenue ton miles by multiplying the weight of the tonnage paid by the total miles it has transported over the time.
Revenue ton miles is a very important determinant of the amount profit in the transportation industry. In order to be different, a transportation firm must be able to earn a profit per mile on the shipped freight. Revenue ton miles is quite similar fundamentally to revenue passenger miles, the measure which is employed by the airlines.
It is the revenue earned by shipping freight by a transportation company