Courier Shipping Rate Estimator
Calculate shipping costs based on weight, dimensions, and distance.
Used for volumetric weight calculation.
Optional. Adds 1% insurance fee.
How Courier Rates Are Calculated
Shipping costs are rarely determined by weight alone. Courier companies use a complex formula that accounts for space, distance, and speed. Understanding these factors can help you optimize your logistics and reduce shipping expenses.
1. Actual vs. Volumetric Weight
The most critical concept in courier pricing is the difference between actual weight and volumetric (dimensional) weight. Couriers charge based on whichever is greater—this is known as the "Chargeable Weight".
- Actual Weight: The dead weight of the package as measured on a scale.
- Volumetric Weight: Calculated as
(Length × Width × Height) / Divisor. The standard industry divisor is typically 5000 for centimeters/kilograms.
For example, a large box containing pillows is light but takes up significant cargo space. You will likely be charged for the volumetric weight rather than the actual weight.
2. Distance and Zones
Carriers divide destinations into "Zones." The further the distance between the origin and destination zone, the higher the base rate. Our calculator uses a simplified "per kilometer" model to estimate this, but actual carriers use specific zone charts.
3. Service Levels
Speed costs money. "Standard Ground" services utilize trucking networks which are cheaper to operate. "Express" or "Air" services require airport infrastructure and tight schedules, resulting in significantly higher rates, often 1.5x to 3x the standard cost.
4. Surcharges
The final price often includes various surcharges that are added on top of the base freight:
- Fuel Surcharge: A percentage fluctuating weekly based on oil prices.
- Insurance: Usually a percentage of the declared value (e.g., 1-2%) to cover loss or damage.
- Residential Delivery: Delivering to a home is more expensive than a business dock due to density.
Tips for Lowering Shipping Costs
To reduce your courier rates, try to minimize package dimensions to reduce volumetric weight. Use poly mailers instead of boxes for non-fragile items, and consolidate multiple items into single shipments whenever possible.