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How To Calculate Cargo Rates

Cargo Rate Formula:

\[ \text{Freight Cost} = \text{Rate per kg} \times \max(\text{Weight}, \frac{\text{Volume}}{\text{Factor}}) \]

$/kg
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m³/kg

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1. What is Chargeable Weight?

The chargeable weight is the greater of the actual weight or volumetric weight of a shipment. Airlines and freight companies use this to account for lightweight but bulky shipments that take up valuable space.

2. How Freight Cost is Calculated

The freight cost is calculated using the formula:

\[ \text{Freight Cost} = \text{Rate per kg} \times \max(\text{Weight}, \frac{\text{Volume}}{\text{Factor}}) \]

Where:

Explanation: The formula ensures you pay for either the physical weight or the space your shipment occupies, whichever is greater.

3. Importance of Volumetric Weight

Details: Volumetric weight prevents undercharging for lightweight, bulky items. It reflects that cargo space is limited, not just weight capacity.

4. Using the Calculator

Tips: Enter the rate per kg, actual weight, volume, and factor (default is 6 for air freight). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical volumetric factor?
A: For air freight it's usually 6 m³/kg (167 kg/m³). For sea freight it's typically 1 m³/kg (1000 kg/m³).

Q2: How do I calculate volume?
A: Measure length × width × height in meters. For irregular shapes, use the smallest rectangular box that would contain the item.

Q3: Why is my chargeable weight higher than actual weight?
A: This happens when your shipment is lightweight but takes up significant space (low density).

Q4: Can I reduce my freight costs?
A: Yes, by either reducing physical weight, optimizing packaging to reduce volume, or choosing a carrier with better rates/factors.

Q5: Do all carriers use the same factor?
A: No, factors can vary between carriers and modes of transport. Always check with your specific carrier.

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