The formula for calculating air/sea freight: Chargeable Weight (kg) × Freight Rate (per kg), or Revenue Ton (R/T) × Freight Rate (per R/T).
How to calculate air freight?
1. Convert the dimensions of the shipment into centimeters (cm).
2. Calculate the volume of the shipment. Volume: Length × Width × Height
3. Divide the volume by 6,000 to get the volumetric weight for air freight.
4. Convert the gross weight into kilograms (kg).
5. Compare the gross weight with the volumetric weight. The higher one will be the chargeable weight.
6. Multiply the air freight rate per kg by the chargeable weight.
An example for calculating air freight:
Assume that you got an air freight quote of $4.5/kg, and your shipment's details are as below:
Gross Weight: 50 kg
Length: 90 cm
Width: 80 cm
Height: 50 cm
Volumetric Weight: (90 × 80 × 50) / 6,000 = 60 kg
60 kg > 50 kg
So the chargeable weight will be 60 kg.
Chargeable Weight × Freight Rate (per kg) = 60 × 4.5 = 270
Thus, the air freight in this example will be $270.
How to calculate sea freight (LCL)?
1. Determine the gross weight in metric tons.
2. Calculate the total volume and convert it into cubic meters (CBM).
3. Compare the gross weight and the total volume. The higher value will be the revenue ton (R/T).
4. Multiply the sea freight rate per R/T by the revenue ton.
An example for calculating sea freight:
Assume that you got a sea freight quote of $300 per R/T, and your shipment's details are as below:
Gross Weight: 1,200 kg
Length: 0.6 m
Width: 0.4 m
Height: 0.5 m
Quantity: 20 boxes
Gross Weight in Tons: 1,200 kg = 1.2 tons
Total Volume in CBM: (0.6 × 0.4 × 0.5) × 20 = 2.4 CBM
2.4 > 1.2, so the revenue ton will be 2.4 R/T.
Revenue Ton × Freight Rate (per R/T) = 2.4 × 300 = 720
Thus, in this example, the sea freight will be $720.