Have you ever wondered why some products, like pillows, are shipped in a compressed state? It’s because of the concept of chargeable weight in air freight logistics. Chargeable weight, which takes into account both the size and weight of the cargo, has a significant impact on the cost of shipping.
For businesses, optimizing packaging to reduce chargeable weight can save big time and still ensure product safety. This article will explain how chargeable weight is calculated and its implications in domestic and global logistics especially on shipping cost.
What is Chargeable Weight in Air Freight?
Chargeable weight is a term used in the air freight industry to describe the weight that determines the cost of a shipment.
Gross weight is the total weight of a shipment, including the product and packaging and is important in determining chargeable weight alongside volume.
Chargeable weight is often different from the actual gross weight of the goods. Instead, it can be influenced by the size or volume of the shipment, especially for large but lightweight items.
The concept of “weight load” is important in freight shipping as it affects shipping costs; light loads can occupy more space than their actual weight load and become unprofitable for carriers. Carriers use chargeable weight because it allows them to account for the space the shipment occupies and its mass. This ensures they get paid fairly for the cargo space used.
Air Freight Weight Calculation Terms
To understand how chargeable weight is calculated, you need to know these:
- Actual Weight: This is the weight of the shipment as it would weigh on a scale.
- Volumetric Weight: Also known as dimensional weight, this is calculated based on the shipment volume. It’s calculated by (Length x Width x Height) / Dimensional Factor.
- Dimensional Factor: It’s a constant used in the calculation of volumetric weight. The value varies depending on the units (e.g., inches and pounds in the imperial system, centimeters and kilograms in the metric system) and the carrier’s policy.
The chargeable weight is whichever is greater: the actual weight or the volumetric weight.
Chargeable Weight Calculation
Step 1: Calculate the volumetric weight using this formula:
Volumetric Weight = (L × W × H) ÷ Dimensional Factor
Where:
- L, W, and H are the package dimensions (length, width, and height).
- The dimensional factor varies by shipping service:
- Express courier services use 5000 when the units are centimeters and kilograms.
- Standard air shipping companies use 6000.
Step 2: Compare the volumetric weight to the shipment’s actual weight.
Step 3: Use the higher value as the chargeable weight.
A Shorter Version of formula
Chargeable Weight = max(Actual Weight, (L × W × H) ÷ Dimensional Factor)
Examples and Scenarios
Let’s say we are shipping one of our metal medical cabinet products, which has a package dimension of 58 x 58 x 26 cm and an actual weight of 10 kg.
Assuming we ship by FedEx and the dimensional factor is 5000.
Step 1: calculate volumetric weight
Volumetric Weight= 58 x 58 x 29 / 5000 = 17.5 kg
Step 2: compare – The actual weight (10 kg) is less than the volumetric weight (17.5 kg)
Step 3: Since the volumetric weight is higher, the shipment’s chargeable weight would be 17.5 kg.
But if the actual weight were 20 kg, that would be the chargeable weight.
Volumetric vs Actual Weight
Knowing when to use volumetric weight versus actual weight is important. Items with the same weight can have different volumes, affecting the chargeable weight.
For dense items like books, actual weight usually determines the chargeable weight. But for bulky, lightweight items like pillows or bubble wrap, volumetric weight often exceeds the actual weight and becomes the chargeable factor. While these examples may seem obvious, other cases require precise calculations to determine the final chargeable weight.
As we saw in the previous example, the empty medical cabinet is charged by volumetric weight. In such cases, we need to find ways to reduce the volumetric weight to lower shipping costs. One option is to redesign the box into multiple panels for flat packaging. But this has a consequence: users have to assemble the product themselves. We need to weigh all the pros and cons. While considering these factors, we can help our clients develop products and packaging that fit their brand.
Challenges in Accurate Weight Calculation
Accurately measuring dimensions in the format L x W x H is important for precise calculation.
It’s worth noting that the freight carrier may charge slightly differently from your calculation. This is because carriers measure shipments more accurately (especially for bulky boxes that protrude), and slight variations can occur.
Additionally, a bulk shipment usually consists of multiple boxes or cartons, each with its own weight and dimensions, which are used to calculate the chargeable weight for air freight. Some shipments contain only one type of product carton. When calculating, we typically measure just one box and use that data for all boxes. However, individual manufactured boxes often have slight size variations.
These factors can lead to minor discrepancies, typically within an acceptable range. While a freight forwarder might provide a quote based on our data on dimensions and weight, they’ll send the final bill after receiving and measuring the goods. It’s normal to see a slight difference between the quote and the bill, but it shouldn’t be substantial.
There is another case that may make calculations more complex. That is the case of using pallets which can create irregular shapes. It can add more uncertainty and affect the final chargeable weight. Make sure to talk to your freight forwarder in advance to understand how it’s calculated and pack your cartons properly.
Air Freight Weight Calculation FAQs
How to Calculate Chargeable Weight for Air Freight?
To calculate chargeable weight, find the actual weight and volume weight, then use the higher of the two as the chargeable weight. The dimensions of the shipment determines the volume weight and ensure that carriers can charge appropriately for larger, lighter packages. See “Chargeable Weight Calculation” section above for details.
How to Calculate Air Freight Charges?
Air freight charges are calculated by multiplying the chargeable weight by the rate per kg or pound, which varies by carrier and route. The rate can be affected by the total weight shipped. For example, shipments over 21 kg often qualify for a discounted rate with express couriers, so larger shipments are more cost-effective.
How to Calculate Chargeable Weight from CBM?
Convert cubic meter (CBM) to volumetric or dimensional weight by multiplying CBM by 1,000,000 and then divide by the carrier’s dimensional factor (5000 or 6000, depending on whether you are shipping by express courier or standard air shipping). Then, compare the volumetric or dimensional weight with the actual weight. The chargeable weight is the higher of the two.
How to Calculate Freight by Weight?
Freight can be calculated by either actual or volumetric weight, whichever is higher, and then apply the freight rate.
Summary
Understanding how to calculate chargeable weight is essential for businesses that sell goods. Calculations in the product development stage can lead to significant cost savings and more efficient logistics planning, giving businesses a sense of control in their operations.
