When discussing the calculation of shipping rates—often referred to in logistics contexts for hubs like Fargo, ND, or generally as "Cargo Rates"—it is crucial to understand that the price is not based solely on how heavy an object is. Logistics companies utilize a mathematical formula based on the density of the package to ensure that lightweight but bulky items are charged appropriately for the space they occupy in a truck or aircraft.
1. The Concept of Chargeable Weight
The core of the rate calculation lies in determining the Chargeable Weight. Carriers will look at two different metrics and bill you based on whichever is higher:
Gross Weight: The actual physical weight of the package as measured on a scale (kg).
Volumetric (Dimensional) Weight: A calculated weight based on the package's dimensions (Length, Width, Height).
2. The Volumetric Weight Formula
To calculate the volumetric weight, carriers use a specific divisor known as the DIM Factor. The standard formula used in most ground and air freight calculations is:
Common DIM Factors:
– 5000: Standard for most courier and express shipments (cm/kg).
– 6000: Often used for less urgent ground freight.
– 4000: Sometimes used by specific carriers for denser calculations.
3. Example Calculation
Imagine you are shipping a box of pillows to Fargo with the following details:
Dimensions: 50cm x 40cm x 30cm
Actual Weight: 2kg (Pillows are light)