Guide calculate shipping costs by each mode of transport
Guide calculate shipping costs by each mode of transport
Shipping fees are a very important part of import and export activities. So how to calculate the correct shipping fee? Let's find out with we through the article below!
What is the shipping fee?
Freight or freight is the amount that customers have to pay to pay transport units to transport goods from the point of request. Calculating freight is one of the mandatory requirements for people performing import and export activities.
Businesses, companies or transport businesses will have different ways of calculating freight rates. Each shipping method will also have different shipping charges. However, these charging methods will all have to adhere to a certain principle.
Rules for calculating freight costs
If you want to calculate the most accurate freight, you will have to rely on 2 main factors: the volume of goods to be transported and the method of transporting that amount of goods. Whether a customer or a transport unit, calculating the weight of goods transported is the most important thing, specifically as follows:If the transported goods are light goods such as letters, gifts or personal documents, they will be weighed directly at the point of receipt and will be determined freight = actual weight of goods x unit price.
For heavy and bulky goods, the shipping price will be higher than that of ordinary light goods, the specific calculation will be as follows: freight = weight of converted goods x unit price
For super-heavy goods with a volume of more than 1 ton, they are exported abroad at large ports and containers. The corresponding calculation formula will be shipping cost = converted weight x unit price.
Factors that affect shipping costs
In calculating freight costs, there are many influencing factors that can directly change the results of the shipping cost calculation. The specific main influencing factors are as follows:
Quantity of goods to be transported:The quantity of goods is one of the main factors that affect the cost of freight. The more the quantity of goods, the higher the freight cost.
Because of that, before choosing a shipping company or shipping method, it is necessary to consider the quantity of goods to choose accordingly, to avoid wasting money on freight.
Shipping distance:
Another thing you need to consider is the shipping distance. This factor will have a big impact on shipping costs. If you transport goods a long distance then of course the freight rate will increase by:On a long distance, the driver has to travel for a long time to ensure that the goods arrive at the destination on time as promised.
Another thing you need to keep in mind is that transporting goods over a long distance will need to use a large amount of fuel.
In addition, in the process of transporting goods over long distances, the goods will also encounter risks such as accidents on the way. Freight service providers will also have to keep that in mind.
Type of goods transported
The type of cargo shipped will affect the freight rates for that freight. Each type of goods will have a different shipping price, namely:Goods that are dry food or normal consumer goods such as confectionery, clothing, etc. will be easily transported and if there is a risk, they will not cause too much loss.
For fragile goods such as: glass vases, porcelain dishes, cups, ... will need to be carefully packed and transported more carefully, the shipping price will also be higher than the above goods.
Goods that are electronic and refrigeration equipment, if there is a risk during transportation, will immediately lose their use value, so a more professional and scientific transportation process will be required. From there, the shipping price of these goods will also be different.
How to calculate shipping costs by different shipping methods
The shipping cost will also vary depending on the shipping method. Here are ways to calculate shipping rates by vehicle that can help you better understand.
How to calculate the cost of transportation by road
Traffic by road will have vehicles such as cars, passenger cars, trucks carrying out the transport of goods. Most of you will come across trucks or trailers that do this job. It can be considered that the method of transporting goods by road is the cheapest and meets most of the transportation needs of customers. The way to calculate the cost of transportation by road is the easiest of all methods.
The formula to calculate the cost of road transport will be: Transport cost n = volume of goods x unit price . (The unit price of each shipping area will be different.)
Along with that, the weight of goods will be calculated by many different formulas including considering the weight of light goods, heavy goods, and bulky goods. Specifically, the volume of goods will be determined as follows:Calculate net weight for light weight goods (direct weighing)
Calculate the converted weight for heavy and bulky goods. The formula will be: (length x width x height)/5000.
How to calculate the cost of freight by sea
Nowadays, sea transportation is used a lot for international import and export goods. This method will usually be applied to large mechanical goods. The unit of freight calculation will be based on the KGS shipment weight or the actual volume of that shipment (length x width x height) x quantity – the unit of calculation will be: CBM.
When calculating the cost of shipping by sea, it will not be fixed like by road, but must be based on the nautical distance along with the weight of the goods. A special thing you need to note is that the volume of goods will be applied according to international standards. There are two ways to calculate the cost of sea freight, namely:1 ton >= 3 CBM, the goods will be classified as light, the shipping fee will be calculated according to the CBM price list.
1 ton < 3 CBM goods will be classified as heavy goods, shipping fee will be calculated according to the KGS price list.
How to calculate the cost of freight by rail
Transport by rail seems to be applied only to heavy goods, large size but short transport distance. Shipping costs are calculated in two ways as follows:For retail goods, goods with a weight of less than 20kg, the freight will be calculated based on the actual volume. If the goods weigh more than 20kg, the odd part will be calculated at the rate of 5kg. That is, the odd portion under 5kg will be counted as 5kg.
If the goods are full wagon, it will be calculated according to the technical tonnage of the ship.
How to calculate the cost of shipping by air
Goods transported by air are usually those that need to be transported in a short time such as flowers, fresh fruits, etc.
Freight charges by air will be calculated based on the tariff schedule of the international air transport association IATA. The calculation formula will be: air freight = Unit cost x weight of goods. For air freight, there are a few things you need to keep in mind about the specific weight of goods as follows:Weight is the actual weight of the order (AW).
Mass is order weight converted to volume (DW).
If weight > mass ; Fees are calculated according to the KGS price list.
If weight < volume: freight will be calculated according to CBM price list.
Businesses, companies or transport businesses will have different ways of calculating freight rates. Each shipping method will also have different shipping charges. However, these charging methods will all have to adhere to a certain principle.
Rules for calculating freight costs
If you want to calculate the most accurate freight, you will have to rely on 2 main factors: the volume of goods to be transported and the method of transporting that amount of goods. Whether a customer or a transport unit, calculating the weight of goods transported is the most important thing, specifically as follows:If the transported goods are light goods such as letters, gifts or personal documents, they will be weighed directly at the point of receipt and will be determined freight = actual weight of goods x unit price.
For heavy and bulky goods, the shipping price will be higher than that of ordinary light goods, the specific calculation will be as follows: freight = weight of converted goods x unit price
For super-heavy goods with a volume of more than 1 ton, they are exported abroad at large ports and containers. The corresponding calculation formula will be shipping cost = converted weight x unit price.
Factors that affect shipping costs
In calculating freight costs, there are many influencing factors that can directly change the results of the shipping cost calculation. The specific main influencing factors are as follows:
Quantity of goods to be transported:The quantity of goods is one of the main factors that affect the cost of freight. The more the quantity of goods, the higher the freight cost.
Because of that, before choosing a shipping company or shipping method, it is necessary to consider the quantity of goods to choose accordingly, to avoid wasting money on freight.
Shipping distance:
Another thing you need to consider is the shipping distance. This factor will have a big impact on shipping costs. If you transport goods a long distance then of course the freight rate will increase by:On a long distance, the driver has to travel for a long time to ensure that the goods arrive at the destination on time as promised.
Another thing you need to keep in mind is that transporting goods over a long distance will need to use a large amount of fuel.
In addition, in the process of transporting goods over long distances, the goods will also encounter risks such as accidents on the way. Freight service providers will also have to keep that in mind.
Type of goods transported
The type of cargo shipped will affect the freight rates for that freight. Each type of goods will have a different shipping price, namely:Goods that are dry food or normal consumer goods such as confectionery, clothing, etc. will be easily transported and if there is a risk, they will not cause too much loss.
For fragile goods such as: glass vases, porcelain dishes, cups, ... will need to be carefully packed and transported more carefully, the shipping price will also be higher than the above goods.
Goods that are electronic and refrigeration equipment, if there is a risk during transportation, will immediately lose their use value, so a more professional and scientific transportation process will be required. From there, the shipping price of these goods will also be different.
How to calculate shipping costs by different shipping methods
The shipping cost will also vary depending on the shipping method. Here are ways to calculate shipping rates by vehicle that can help you better understand.
How to calculate the cost of transportation by road
Traffic by road will have vehicles such as cars, passenger cars, trucks carrying out the transport of goods. Most of you will come across trucks or trailers that do this job. It can be considered that the method of transporting goods by road is the cheapest and meets most of the transportation needs of customers. The way to calculate the cost of transportation by road is the easiest of all methods.
The formula to calculate the cost of road transport will be: Transport cost n = volume of goods x unit price . (The unit price of each shipping area will be different.)
Along with that, the weight of goods will be calculated by many different formulas including considering the weight of light goods, heavy goods, and bulky goods. Specifically, the volume of goods will be determined as follows:Calculate net weight for light weight goods (direct weighing)
Calculate the converted weight for heavy and bulky goods. The formula will be: (length x width x height)/5000.
How to calculate the cost of freight by sea
Nowadays, sea transportation is used a lot for international import and export goods. This method will usually be applied to large mechanical goods. The unit of freight calculation will be based on the KGS shipment weight or the actual volume of that shipment (length x width x height) x quantity – the unit of calculation will be: CBM.
When calculating the cost of shipping by sea, it will not be fixed like by road, but must be based on the nautical distance along with the weight of the goods. A special thing you need to note is that the volume of goods will be applied according to international standards. There are two ways to calculate the cost of sea freight, namely:1 ton >= 3 CBM, the goods will be classified as light, the shipping fee will be calculated according to the CBM price list.
1 ton < 3 CBM goods will be classified as heavy goods, shipping fee will be calculated according to the KGS price list.
How to calculate the cost of freight by rail
Transport by rail seems to be applied only to heavy goods, large size but short transport distance. Shipping costs are calculated in two ways as follows:For retail goods, goods with a weight of less than 20kg, the freight will be calculated based on the actual volume. If the goods weigh more than 20kg, the odd part will be calculated at the rate of 5kg. That is, the odd portion under 5kg will be counted as 5kg.
If the goods are full wagon, it will be calculated according to the technical tonnage of the ship.
How to calculate the cost of shipping by air
Goods transported by air are usually those that need to be transported in a short time such as flowers, fresh fruits, etc.
Freight charges by air will be calculated based on the tariff schedule of the international air transport association IATA. The calculation formula will be: air freight = Unit cost x weight of goods. For air freight, there are a few things you need to keep in mind about the specific weight of goods as follows:Weight is the actual weight of the order (AW).
Mass is order weight converted to volume (DW).
If weight > mass ; Fees are calculated according to the KGS price list.
If weight < volume: freight will be calculated according to CBM price list.
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