Freight Cost Estimator

Freight Cost Calculation Factors

The freight rate on export goods is often based on W/M (weight or measure), the greater of the actual weight or the volume of cargo (the cube or measurement of cargo). A cargo that is large in relation to its weight is charged according to its total cube, while a cargo that is heavy in relation to its size is charged according to its gross weight.

The unit of ton used in the freight cost calculation may differ among carriers. It can be a metric ton (2204.6 lbs. or 1000 kgs.), a short ton (2000 lbs. or 907 kgs.), or a long ton (2240 lbs. or 1016 kgs.). The exporter must verify with the carrier which unit is being used. In practice, the most frequently used is the metric ton.

Units of Weight or Measure Commonly Used in the Freight Cost Calculation

LEGEND:
MT	= metric ton
kg	= kilogram
lb	= pound
CBM	= cubic meter
cu cms	= cubic centimeters
cu ft	= cubic feet
cu in	= cubic inches

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Peter Knight