Airfreight Shipments - Chargeable Weight

Since air freight shipments are not based on rate class like motor freight, and since the amount of space required determines the cost, a system to account for shipment volume was required. The system that is used establishes a minimum density for air shipments, below which shipments are rated according to the amount of space they consume instead of the weight of the shipment.

For international shipments the minimum density is 6000 cubic centimeters per kilogram. To compute the A volume weight @ of a shipment:

Calculate the volume in cubic centimeters by multiplying the length x width x height of all the pieces. Then divide the volume in cc by 6000. The result is the volume weight in kilograms.

In the English system, calculate the volume in cubic inches and divide by 166 to determine the volume weight in pounds. This is approximately the same as multiplying the volume in cubic feet times 10.41 to determine the volume weight in pounds.

The rate used for computing freight charges is the larger of the volume weight or the actual weight. Examples:

Shipment A - 16 x 16 x 16 inches weighing 20 lbs.

Volume weight = 16x16x16/166 or 24.67 lbs rounded to 25 lbs. Since the volume weight (25) is more than the actual weight (20), the chargeable weight is 25 lbs.

Shipment B - 16 x 16 x16 inches weighing 30 lbs.

Volume weight is still 25 lbs because it is still the same size, but since the actual is 30, the chargeable weight is 30 lbs.

For a multiple piece shipment, the total volume of the shipment is used. That is the sum of the volumes of each piece. In that manner, the heavy pieces cancel out the light pieces, and the chargeable weight is based on the volume of the total shipment. Non rectangular solids are treated for purposes of measurement as the smallest box that the piece would fit within. So to reduce volume, shipments should be packed or boxed so as to avoid protrusions. It is sometimes less costly to pack in several cartons than to pack or palletize as an irregular shape. If the shipment is heavier, it is probably better to go ahead and palletize, as the ability to handle with pallet jacks or forklifts will mean the shipment will be handled more easily, and if sufficiently dense will be charged on actual weight anyhow. Before unitizing, it is a good idea to check to see if the total weight can be send to the intended final destination. This is usually not a problem to major cities, but for smaller cities with smaller aircraft serving them can sometimes cause the shipment to be diverted to surface transport.

Sea Shipments - Chargeable Weight

Computation of Chargeable Rate Base for Seafreight Shipments

Seafreight shipments are charged according to Weight or Measure. This is usually abbreviated as Currency per Weight or Measure (ex. $150 W/M) In times past the weight was figured in either Long Tons or Short Tons with measure in 40 cubic feet units. Since most rates are now based on the Metric System, common weight or measure units are Metric Ton (MT) and Cubic Meter (CBM).

To compute MT, divide the total kilograms by 1000. To compute CBM, multiply length x width x height (all in meters).

To convert from the English system, divide total weight in pounds by 2204.6 to compute MT. For measure, divide total cubic feet by 35.314 to determine CBM.

Example:

A shipment consisting of 3 crates with dimensions (lwh) and weights as follows:

  1. 1.2 x 1.0 x 0.8 meters 400 kg
  2. 1.3 x 1.0 x 1.4 meters 600 kg
  3. 3.0 x 1.6 x 2.0 meters 2400 kg

Computation:

  1. 0.96 CBM 400 kg
  2. 1.82 CBM 600 kg
  3. 9.60 CBM 2400 kg

Totals 12.38 CBM 3400 kg Therefore W= 3.4 MT and M=12.38 CBM

Since the measure exceeds the weight, the rate base would be 12.38, and using the rate example given above of $150 W/M, the freight charge would be $1857.00. (12.38 x 150)

W/M rating usually applies to LCL (Less than Container Load) and breakbulk (not containerized) shipments. W/M can also apply to containerized loads for certain commodities, but W/M rating is being used less and less with more FCL pricing. Although W/M pricing might seem to be difficult, it solves the problem of accounting for extremes of density (feathers or lead as they say in the freight business) within the rate structure itself without resorting to rate classes and is done with motor freight. In order to provide a quote for a seafreight shipment, we need to know the commodity and the weight and measure. We can compute the weight and measure if given the dimensions and weights of the goods being shipped. In some cases, it is less expensive to use a full container rate even though not all of the space within the container is used, particularly if extra packing or crating can be avoided by use of a container.

Determining the best option for shipment is a team effort. We look forward to presenting several options, so shippers might choose what is best for each international customer.