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  • GU 21 Transportation Freight Calculation

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    vicky upreti
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    Freight forwarders calculate charges for less than cargo load (LCL) shipments based on the cubic meter (CBM) or weight, whichever is higher. CBM is calculated by multiplying the length, width, and height of packages. Chargeable weight, which determines freight costs, is the greater of the actual weight or volumetric weight, calculated by dividing the cubic centimeters by 6000. Calculating volumetric weight ensures shippers are charged based on the space used rather than just the actual weight.

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    Freight forwarders calculate charges for less than cargo load (LCL) shipments based on the cubic meter (CBM) or weight, whichever is higher. CBM is calculated by multiplying the length, width, and height of packages. Chargeable weight, which determines freight costs, is the greater of the actual weight or volumetric weight, calculated by dividing the cubic centimeters by 6000. Calculating volumetric weight ensures shippers are charged based on the space used rather than just the actual weight.

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    162 views4 pages

    GU 21 Transportation Freight Calculation

    Uploaded by

    vicky upreti
    Freight forwarders calculate charges for less than cargo load (LCL) shipments based on the cubic meter (CBM) or weight, whichever is higher. CBM is calculated by multiplying the length, width, and height of packages. Chargeable weight, which determines freight costs, is the greater of the actual weight or volumetric weight, calculated by dividing the cubic centimeters by 6000. Calculating volumetric weight ensures shippers are charged based on the space used rather than just the actual weight.

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    of 4

    Transportation Freight Calculation

    What is means of CBM in shipping:

    CBM: Cubic Meter; CFT: Cubic Feet

    FCL: Full Cargo Load; LCL: Less Than Cargo Load

    In short, Freight Forwarders charges LCL rate on the basis of 'per CBM' or per weight of 1000
    kgs (1 ton) whichever is higher. 

    How CBM is calculated?

    CBM is calculated by multiplying length, width and height of packages of goods

    (Length x Width x Height).

    International Volumetric Weights:

    Volumetric Weight in kilograms = Length X Width X Height (in centimeters) / 5000

    Multiply the length x height x width in centimeters and divide the answer by 5,000. The result is
    the volumetric weight.

    How do you calculate cubic volume:

    Volume = length x width x height (M3)

    Units of Measure

    1) Volume = length x width x height.

    2) You only need to know one side to figure out the volume of a cube.

    3) The units of measure for volume are cubic units.

    4) Volume is in three-dimensions.

    5) You can multiply the sides in any order.

    6) Which side you call length, width, or height doesn't matter.

    1 CBM = 35.3 CFT

    1 CBM = 1000 Litre

    1KG = 2.2 Lbs (pound)


    How to Calculate Chargeable Weight for all modes of transportation Freight Shipments?

    (i) Chargeable Weight of Air Freight shipments

    The Chargeable Weight of Air Freight shipments are calculated as:

     the Actual Weight (Gross Weight) OR


     the Volumetric Weight (also called Volume or Dimensional Weight) of the shipment,
    whichever is the greater.
    The estimated weight is calculated based on the dimensions (length, width and height) of a
    package (shipments are always shown in the order of L x W x H).
    Typically, large items with a light overall weight take up more space on an aircraft than a small,
    heavy item. That’s why the Airlines charge according to Chargeable Weight.

    Chargeable weight is commonly used by air freight forwarders, domestic motor carriers and
    brokers to calculate their Air freight and/or Domestic trucking charges.

     
    1) The formula for calculating the volume/dimensional weight for all commodities is

     166 cubic inches per pound or


     366 cubic inches per kilogram.
     6000 cubic centimeters per kilogram

    2) Multiply the length x width x height to obtain the cubic inches, then:

    3) To obtain the dimensional weight in pounds using inches, divide the cubic inch result by
    166

    4) To obtain the dimensional weight in kilograms using inches, divide the cubic inch result
    by 366

    5) Using Dimensions in Centimeters: To obtain the dimensional weight in kilograms using


    centimeters, divide the cubic centimeter result by 6000

    Some definitions and formulas to start:

     Chargeable Weight: the greater of (actual weight vs. volume weight) of a shipment.
     Chargeable weight is an equilibrium point where the actual weight and volume weight
    of cargo balance out for the airline,
     BUT, keep in mind that if the actual weight of the cargo is higher than the “equilibrium
    point”, the air freight charges are billed on that actual weight.

    Volume/Volumetric/Dimensional Weight: Cargo weight based on dimensions of the cargo


    Actual Weight: Actual weight of the Cargo weighed on a scale
    Lb or lbs:   pounds
    Kg or kgs: kilograms
    CFT or ft3: cubic feet
    CBM or m3: cubic meters
    Tonne or MT: metric ton 1,000 kgs or 2,204.6 lbs

    Basic Conversions:

    1 inch = 2.54 centimeters (cms) OR 1 cms = 0.393701 in


    1 lbs = 0.453592 kgs OR 1 kgs = 2.20462 lbs

    Imperial shipping factor examples:

    167 in3 /lb = 10.4  lb/ft3

    Metric shipping factor examples:


    5000  cm3/kg = 200  kg/m3
    6000  cm3/kg = 166.667  kg/m3
    7000  cm3/kg = 142.857  kg/m3

    Note: all dimensions and weights are rounded to the nearest whole number.

    Combining dimensions in inches and weight in kgs: (L x W x H)/366 (this is commonly done in U.S.
    exports since dimensions are provided in inches but charges for air freight are always in kgs).

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