Thursday, February 25, 2010

Calculating chargeable weight under airfreight in import-export

There are several ways to ship your products to your customers abroad and here I want to share how airfreight charges are being computed, so you will know more or less how much you'd be paying for the cargo you will be shipping through airfreight.


How to calculate chargeable weight under airfreight in exports and imports.


Freight charge under air shipment is calculated on the basis of weight of cargo. Commonly a question arises here, whether actual weight or chargeable weight?

In an air shipment, airfreight charge is calculated on the basis of actual weight or chargeable weight, which ever is higher. Then what is Chargeable weight? How to find chargeable weight?

Chargeable weight is an equilibrium point where in actual weight and volume of cargo balance.

Why chargeable weight in airfreight?

Let me explain the importance of chargeable weight in airfreight. Why do air carrier balance weight and volume of cargo?

Let me explain the importance of chargeable weight in simple terms. If a shipper exports cotton, the actual weight of cotton is very low but occupies a good amount of space as a volume. In this case, if airfreight is charges on the basis of actual weight of cargo, the said shipper needs to pay a very nominal airfreight compared to a shipper who exports iron plates. Am I right? Here is the importance of chargeable weight by considering volume of cargo and actual weight of cargo at an equilibrium point.

Calculation of chargeable weight in airfreight.

In order to find chargeable weight of cargo you need to have measurement of package of goods.If the cargo measurement are in centimeters, the total volume of cm3 to be divided with 6000. In other words, if the volume is in cubic meter (CBM), the said volume in M3 to be divided with 0.006. Air carriers charge airfreight on the basis of chargeable weight or actual gross weight which ever is higher.

Let me explain to calculate chargeable weight in simple language to make understand easily. I am going to explain with 3 examples, the method of calculation of airfreight for export shipments.

You have three shipments to be exported separately. Measurement of cargo length, width and height

Gross weight =750kgs
Measurement of cargo = 102cm X 98cm X 106cm = 1 box
80cm X 65cm X 103cm = 3 boxes
Total volume = 1059576 +(535600X3) = 2666376 cubic centimeter
Total chargeable weight = 2666376 / 6000 = 444.396kgs
Here in shipment No: 1, the gross weight is 750kgs and chargeable weight is 444.396kgs. Hence, actual gross weight of 750kgs (which is greater) is charged airfreight.

Shipment 2:
Gross weight = 850kgs
Measurement of cargo = 120cm X 160cm X 115cm = 2 boxes
75cm X 130cm X 125cm = 2 boxes
Total volume = 4416000 + 2437500 =6853500 cubic centimeter
Total chargeable weight = 6853500 / 6000 = 1142.25kgs
Here in shipment No:2, the gross weight is 850kgs and chargeable weight is 1142.25kgs. Hence, airfreight is charged on the basis of chargeable weight of 1142.25kgs.

Shipment 3:
Gross weight : 950kgs.
Measurement of cargo = 1 meter X 1.05 meter X 0.85 meter = 2 boxes
0.7 meter X 1.50 meter X 0.60 meter= 3 boxes
Total volume = (0.8925 X 2) + ( 0.63 X 3)
1.785 + 1.89 = 3.675 cubic meter
Total chargeable weight = 3.675 / .006 = 612.50kgs

Here in shipment #3, the gross weight is 950kgs and chargeable weight is 612.50kgs. Hence, airfreight is charged on the basis of actual gross weight of 950kgs which is greater than chargeable weight. Also note, the measurement in shipment 3 is in meter and volume calculation also may be noted.
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2 comments:

  1. Its a fantastic post. I have learnt a lot of from your article. Its too much effective specially for me. Thanks for sharing your valuable experience.

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  2. Fully defining the weight, volume of the freight to be forwarder would allow you compute the expense to be spent on delivering the freight without being tricked by forwarders. Be sure to have a keen eye of their contract plus the computation of the payment.
    Metro Combined, providing forwarding services in the Philippines through land, sea, and air.

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