diff --git a/jsprit-core/src/main/java/com/graphhopper/jsprit/core/algorithm/recreate/LocalActivityInsertionCostsCalculator.java b/jsprit-core/src/main/java/com/graphhopper/jsprit/core/algorithm/recreate/LocalActivityInsertionCostsCalculator.java
index cdd7dac2..0f91eab1 100644
--- a/jsprit-core/src/main/java/com/graphhopper/jsprit/core/algorithm/recreate/LocalActivityInsertionCostsCalculator.java
+++ b/jsprit-core/src/main/java/com/graphhopper/jsprit/core/algorithm/recreate/LocalActivityInsertionCostsCalculator.java
@@ -22,6 +22,7 @@ import com.graphhopper.jsprit.core.algorithm.state.InternalStates;
 import com.graphhopper.jsprit.core.problem.cost.VehicleRoutingActivityCosts;
 import com.graphhopper.jsprit.core.problem.cost.VehicleRoutingTransportCosts;
 import com.graphhopper.jsprit.core.problem.misc.JobInsertionContext;
+import com.graphhopper.jsprit.core.problem.solution.route.activity.DeliverShipment;
 import com.graphhopper.jsprit.core.problem.solution.route.activity.End;
 import com.graphhopper.jsprit.core.problem.solution.route.activity.TourActivity;
 import com.graphhopper.jsprit.core.problem.solution.route.state.RouteAndActivityStateGetter;
@@ -77,7 +78,9 @@ class LocalActivityInsertionCostsCalculator implements ActivityInsertionCostsCal
 
         double oldCosts = 0.;
         if (iFacts.getRoute().isEmpty()) {
-            double tp_costs_prevAct_nextAct = routingCosts.getTransportCost(prevAct.getLocation(), nextAct.getLocation(), depTimeAtPrevAct, iFacts.getNewDriver(), iFacts.getNewVehicle());
+            double tp_costs_prevAct_nextAct = 0.;
+            if (newAct instanceof DeliverShipment)
+                tp_costs_prevAct_nextAct = routingCosts.getTransportCost(prevAct.getLocation(), nextAct.getLocation(), depTimeAtPrevAct, iFacts.getNewDriver(), iFacts.getNewVehicle());
             oldCosts += tp_costs_prevAct_nextAct;
         } else {
             double tp_costs_prevAct_nextAct = routingCosts.getTransportCost(prevAct.getLocation(), nextAct.getLocation(), prevAct.getEndTime(), iFacts.getRoute().getDriver(), iFacts.getRoute().getVehicle());
diff --git a/jsprit-core/src/test/java/com/graphhopper/jsprit/core/algorithm/recreate/TestLocalActivityInsertionCostsCalculator.java b/jsprit-core/src/test/java/com/graphhopper/jsprit/core/algorithm/recreate/TestLocalActivityInsertionCostsCalculator.java
index 66ff5063..b9e4f631 100644
--- a/jsprit-core/src/test/java/com/graphhopper/jsprit/core/algorithm/recreate/TestLocalActivityInsertionCostsCalculator.java
+++ b/jsprit-core/src/test/java/com/graphhopper/jsprit/core/algorithm/recreate/TestLocalActivityInsertionCostsCalculator.java
@@ -28,6 +28,7 @@ import com.graphhopper.jsprit.core.problem.cost.VehicleRoutingTransportCosts;
 import com.graphhopper.jsprit.core.problem.cost.WaitingTimeCosts;
 import com.graphhopper.jsprit.core.problem.job.Job;
 import com.graphhopper.jsprit.core.problem.job.Service;
+import com.graphhopper.jsprit.core.problem.job.Shipment;
 import com.graphhopper.jsprit.core.problem.misc.JobInsertionContext;
 import com.graphhopper.jsprit.core.problem.solution.route.VehicleRoute;
 import com.graphhopper.jsprit.core.problem.solution.route.activity.End;
@@ -91,6 +92,74 @@ public class TestLocalActivityInsertionCostsCalculator {
         return Location.Builder.newInstance().setId(i).build();
     }
 
+    @Test
+    public void whenAddingServiceBetweenDiffStartAndEnd_costMustBeCorrect() {
+        VehicleImpl v = VehicleImpl.Builder.newInstance("v")
+            .setStartLocation(Location.newInstance(0, 0))
+            .setEndLocation(Location.newInstance(20, 0))
+            .build();
+        Service s = Service.Builder.newInstance("s")
+            .setLocation(Location.newInstance(10, 0))
+            .build();
+        VehicleRoutingProblem vrp = VehicleRoutingProblem.Builder.newInstance()
+            .addVehicle(v)
+            .addJob(s)
+            .build();
+        VehicleRoute route = VehicleRoute.emptyRoute();
+        JobInsertionContext jobInsertionContext =
+            new JobInsertionContext(route, s, v, null, 0);
+        LocalActivityInsertionCostsCalculator localActivityInsertionCostsCalculator =
+            new LocalActivityInsertionCostsCalculator(
+                vrp.getTransportCosts(),
+                vrp.getActivityCosts(),
+                new StateManager(vrp));
+        double cost = localActivityInsertionCostsCalculator.getCosts(
+            jobInsertionContext,
+            new Start(v.getStartLocation(),0,Double.MAX_VALUE),
+            new End(v.getEndLocation(),0,Double.MAX_VALUE),
+            vrp.getActivities(s).get(0),
+            0);
+        assertEquals(20., cost, Math.ulp(20.));
+    }
+
+    @Test
+    public void whenAddingShipmentBetweenDiffStartAndEnd_costMustBeCorrect() {
+        VehicleImpl v = VehicleImpl.Builder.newInstance("v")
+            .setStartLocation(Location.newInstance(0, 0))
+            .setEndLocation(Location.newInstance(20, 0))
+            .build();
+        Shipment s = Shipment.Builder.newInstance("p")
+            .setPickupLocation(Location.newInstance(10, 0))
+            .setDeliveryLocation(Location.newInstance(10, 7.5))
+            .build();
+        VehicleRoutingProblem vrp = VehicleRoutingProblem.Builder.newInstance()
+            .addVehicle(v)
+            .addJob(s)
+            .build();
+        VehicleRoute route = VehicleRoute.emptyRoute();
+        JobInsertionContext jobInsertionContext =
+            new JobInsertionContext(route, s, v, null, 0);
+        LocalActivityInsertionCostsCalculator localActivityInsertionCostsCalculator =
+            new LocalActivityInsertionCostsCalculator(
+                vrp.getTransportCosts(),
+                vrp.getActivityCosts(),
+                new StateManager(vrp));
+        double cost = localActivityInsertionCostsCalculator.getCosts(
+            jobInsertionContext,
+            new Start(v.getStartLocation(),0,Double.MAX_VALUE),
+            new End(v.getEndLocation(),0,Double.MAX_VALUE),
+            vrp.getActivities(s).get(0),
+            0);
+        assertEquals(20., cost, Math.ulp(20.));
+        cost = localActivityInsertionCostsCalculator.getCosts(
+            jobInsertionContext,
+            vrp.getActivities(s).get(0),
+            new End(v.getEndLocation(),0,Double.MAX_VALUE),
+            vrp.getActivities(s).get(1),
+            0);
+        assertEquals(10, cost, Math.ulp(10.));
+    }
+
     @Test
     public void whenInsertingActBetweenTwoRouteActs_itCalcsMarginalTpCosts() {
         TourActivity prevAct = mock(TourActivity.class);