Air Freight (Dim Factor 6000)
Sea Freight (CBM calculation)
Freight Summary
How International Freight Rates Are Calculated
Calculating international shipping costs involves more than just weighing a box. Logistics providers use a concept called Chargeable Weight. This ensures that the carrier is compensated for either the weight or the space occupied by the cargo, whichever is greater.
1. Actual Weight vs. Volumetric Weight
Carriers compare the physical weight of the shipment to its "volumetric weight" (also known as dimensional weight).
Air Freight: The standard ratio is 1:6000 (though some use 1:5000). The formula is (L x W x H) / 6000.
Sea Freight: Rates are usually calculated per Cubic Meter (CBM). 1 CBM is often considered equivalent to 1,000 kg.
2. Freight Rate Types
The base rate is applied against the chargeable weight. For air freight, this is usually a price per kilogram. For sea freight (LCL – Less than Container Load), it is a price per CBM.
3. Surcharges and Fees
International shipping includes various additional costs:
Fuel Surcharge (FAF): Adjusts for fluctuations in global oil prices.
Handling Fees: Terminal charges at the origin and destination ports.
Customs Fees: The cost associated with documentation and clearance.
Real-World Example
Suppose you are shipping a crate weighing 150 kg with dimensions 120cm x 100cm x 100cm via Air Freight at a rate of $3.00/kg.