Ever wondered how your freight forwarder arrives at the chargeable weight that they ?
It all comes down to maths, but it’s far from simple!
In this blog, we’ll strip the topic of chargeable weight right back, so you get a clearer understanding of what it means for your air shipments.
What Is Chargeable Weight?
In air freight, space is a premium. More so than on road, sea or rail. Unlike other methods of transport, you can’t just double the size of a plane if you need to or add another carriage that tags along behind it.
And this means that the size of your cargo needs to be accounted for as well as how much it weighs. Here’s another way of putting it. A large, but very light load, could take up the space of 3 much heavier ones, making the plane’s journey less profitable.
Get it?
To overcome this, a system was devised that accounts for all aspects of your cargo. Chargeable weight is based on either actual weight (gross weight) OR volumetric weight, whichever is greater.
Actual Weight
Funnily enough, this term refers to the real-life weight of your cargo. But it doesn’t just refer to the goods themselves. The additional weight of any packaging, cushioning and the pallets your goods sit on are also taken into account.
Actual weight is, therefore, the gross weight of your shipment and is usually measured using the metric system for ease of calculation. A ground handling agent is responsible for weighing the cargo and issuing a weighing slip, and the number on that is what’s recorded on the air waybill.
Volumetric Weight
Volumetric weight, also known as dimensional weight or DIM weight, is a term that describes the cargo’s weight based on its density and is calculated based on the dimensions of the shipment.When freight forwarders are working out how much to charge you, they compare these two weight values to see which is higher, and this becomes the billable weight. Because lighter loads take up less space than denser loads, they tend to be charged by dimensional weight, whereas heavier loads are typically charged by actual weight.
What’s The Calculation?
Did you want to drop and run at the sight of the word ‘calculation’?
Don’t worry; it’s not your fault. Plenty of people find anything maths-related completely overwhelming, and that’s okay. It’s just not your thing… but knowledge is power!
Stick around and see if you can grasp the equation – having a basic understanding of the calculations behind chargeable weight means you can make sure you’re getting the most cost-effective rates later down the line.
Are you on board? Take a deep breath, and let’s dive in.
How To Calculate Volumetric Weight For Air Freight
To work out the volumetric weight of your cargo, you need to start with the shipment’s dimensions. To make the explanation easy to absorb, let’s imagine we’re shipping a washing machine.
How big is a standard washing machine? You want the length, width and height. And then you’re going to multiply them. Very approximately, let’s go for a length of 60 cm, a width of 40 cm and a height of 82 cm.
The calculation looks like this…
60 cms x 40 cms x 82 cms = 196,800 cms3
First step complete. That wasn’t so bad, was it? Next, you divide your total by either 5000 or 6000. This is called the dividing factor, but can also be called the DIM factor. 6000 is the standard dividing factor, the one you’ll come across with most carriers, but some use 5000 instead.
For us, this stage of the calculation looks like this:
196,800 / 6000 = 32.8 kg
And that’s it! 32.8kg is the volumetric weight of our washing machine. The thing is that our washing machine actually weighs 60kg. And because forwarders use the higher value when they’re working out how much to charge you, the chargeable weight would be based on our cargo’s actual weight this time round.
That wasn’t so bad at all, was it?
How Can I Reduce my Chargeable Weight?
Once the chargeable weight of your goods has been calculated, there’s no changing it. But if you’re thinking about reducing the number to save a little on freight rates, there are a couple of ways to tackle it.
Lighter Packaging
The actual weight of your cargo takes into account packing materials and cushioning. So opting for packaging materials that weigh less will bring that number down. Obviously, the volumetric weight of your goods will still be calculated, and it’s the higher of these two values that is chargeable, but your adjustments might just make the difference.
Considered Packing
When the ground handling agent is working out the volumetric weight of your cargo, they’ll be taking length, width and height measurements. To reduce your chargeable weight, think about how you can minimise the gaps between products on the pallet for a smaller-sized consignment.
Care needs to be taken with this one to make sure your goods remain safe, as you don’t want to end up with a pallet full of damaged cargo.
Is It The Same Calculation For Road or Ocean Freight?
In principle, yes. The first stage of working out, the volumetric weight remains the same, so the length, height and width are all multiplied together.
The difference is the dividing factor. This varies according to freight mode, and also by carrier. The standard accepted DIM factors are:
- Vessel shipping for ocean freight – 1:1,000
- EU trucking for road freight – 1:3,000
- Express freight/courier – 1:5,000
- Air freight: 1:6,000
Yay, more maths…
It looks daunting, but the calculation remains simple, we promise!
Working Out Chargeable Weight Isn’t As Scary As It Looks
Maths doesn’t have to be the enemy. And now you know the magic formula used to work out your freight costs, you can project your shipping costs more accurately.
Can’t wrap your head around the numbers? That’s what we’re here for. If maths isn’t for you, contact Millennium today, and we’ll do all of the hard work for you.