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Getting Your Head Around Volumetric Ratios [Air & Sea Freight]

What are Volumetric Ratios In Air & Sea Freight

If you are reading this article you may be wondering what volumetric ratios are and why, as an importer or exporter, they should matter to you. It is not uncommon that as a forwarder we are asked this question.

Essentially, volumetric ratios (or chargeable weights) are used to ensure the weight or size of your cargo are considered in equal measure when shipping.

For example, imagine you have a piece of steel you would like to send LCL (Less Container Load) via sea freight. Now, imagine the steel is small in size (0.5cbm) but weighs over 2000kgs. LCL freight is charged in cubic meters. However, on this occasion your goods are not taking up much space in the container but are using a lot of the container’s weight capacity. This is where the volumetric ratio comes in.

This is also the case for airfreight. Airfreight is charged in KGs. Consider you are shipping something light like toilet rolls. The toilet rolls only weigh 100kgs however, they take up 5 cubic meters worth of space. The airline will now charge you a volumetric weight to cover the space taken up on the aircraft.

Understanding chargeable weights is essential when calculating the cost of your freight.

Chargeable Weight Calculator

If you are sending goods internationally via air or sea freight you can calculate your volumetric shipping size by downloading our volumetric calculator or read on to find out more.

 

How to Calculate Chargeable Weight For Air and Sea Freight

To effectively calculate your volumetric ratios, you can use the formula below.

The key rule to remember is: You will always be charged by whatever is higher, your chargeable weight or your cubic meters or KGs.

Airfreight

Volume ratio:                1 cbm = 167 kgs

Formula:                          cbm x 167 = chargeable weight

*If actual weight is higher you will be charged on actual weight.

Oceanfreight

Volume ratio:                1 cbm = 1000 kgs

Formula:                          cbm x 1000 = chargeable weight

*If actual cube is higher than chargeable weight you will be charged on actual cube.

Example

Let’s take our example above to calculate chargeable weight and return to our toilet rolls. Remember our toilet rolls weigh 100kgs but in volume they are 5 cubic meters.

For an airfreight shipment 1 cubic meter is the equivalent of 167kgs.

5 x 167kgs = 835

Your chargeable weight is 835kgs for this shipment which is higher than 100kgs. You will, therefore, be charged for sending 835kgs via airfreight.

One Last Tip

The above should give you a good basis of how to calculate your volumetric ratios but remember your ICE team are here to help.

If you need further support understanding volumetric ratios or calculating the costs of freight, you can contact the ICE team on 1300 CARGO1.

Request a Free Quote or call us on 1300 227 461

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Attracting overseas investors.✅
Reducing import costs.✅
Tapping into overseas markets.✅
These are some of the benefits of Free Trade Agreements. Find out more about Australia's FTAs here: www.icecargo.com.au/free-trade-agreements-australia/
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Attracting overseas investors.✅
Reducing import costs.✅
Tapping into overseas markets.✅
These are some of the benefits of Free Trade Agreements. Find out more about Australias FTAs here: https://www.icecargo.com.au/free-trade-agreements-australia/

Buyer’s consolidation is a method of shipping freight from a point of origin to an end destination by grouping your shipments together into one larger shipment. By consolidating a number of shipments, you may be able to save on shipping costs and reduce the risk of damage to your freight.
Find out more: bit.ly/39HW00c
... See MoreSee Less

Buyer’s consolidation is a method of shipping freight from a point of origin to an end destination by grouping your shipments together into one larger shipment. By consolidating a number of shipments, you may be able to save on shipping costs and reduce the risk of damage to your freight.
Find out more: http://bit.ly/39HW00c

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