Chargeable weight
For a transport company to sell their free space more efficiently, the industry developed a concept known as Chargeable Weight...
Why do carriers not use gross weight or volume when calculating freight costs?
Some goods are heavy but take up very limited space, others are really light but take up alot of space in a trailer.
How do we calculate Chargeable Weight?
We use these calculations:
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Gross weight
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Loading meter (Ldm weight)
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Volumetric weight
Chargeable weight = the largest weight from the 3 calculations above
Let us assume that we want to ship a consignment that consists of 10 pallets with the following measurements:
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Dimensions of each pallet [mm]: 1200 x 1000 x 1800
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Weight of each package [kgs]: 960 gross weight
Step 1: Add the weight factors
Each carrier will have a:
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Volumetric [cbm] factor. For example, 1 m3 = 333 kgs
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Loading meter [Ldm] factor. For example, 1 pallet space = 1250 kgs
Step 2: Calculating the gross weight of the cargo
The gross weight of our cargo is 9600 kgs.
Step 3 : Calculating the Ldm of the consignment
We will multiply the length and width of the consignment and then divide by the width of the trailer. We are using a default of 2.4m. [= 0.5 ldm]
Now multiply that figure by the number of pallets. [= 5 ldm]
Example of the carriers Loading meter factor = 1250 kgs / ldm
LDM weight = Total Ldm of the consignment x road shipment Ldm weight factor
Ldm Weight= 5 Ldm x 1250 kgs/ Ldm = 6250 kgs
Step 4 : Calculating the volumetric weight of the cargo
We will multiply the volume of the consignment with the volumetric weight factor of the carrier to get the volumetric weight.
Example of the carriers volumetric weight factor = 333 kgs / cbm
Volumetric Weight = Total volume of the consignment x road shipment volumetric weight factor
Volumetric Weight= 21,6 cbm x 333 kgs/ cbm = 7192,8 kgs
Step 5 : Calculating the chargeable weight of the cargo:
We now compare:
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the gross weight
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the Loading meter weight
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the volumetric weight
of the consignment and select the biggest amount. This will be your chargeable weight for the given shipment.
Stacking of a consignment
This is based on the information received through the interfaced orders or by using the stackable function in Create Order.
Event will then divide the number of HU's by half to show as stacked.
note: Users can select the calculations that they want to use. For example they may only calculate Gross weight and Volumetric weight.
Implementing Chargeable Weight
How to start calculating
This guide will step through getting started with activating Chargeable Weight
You activate chargeable weight by carrier, so select the correct carrier in Carrier Vitals, then their Rate Card tab.
Use the '?' help to open the Chargeable Weight mini site.
Save your changes.
You activate chargeable weight by carrier, so select the correct carrier in Carrier Vitals, then their Rate Card tab.
Now it's active, how do i use it?
Once activated for a carrier, you don't need to worry about anything. Event will tell you if you need to know.
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Selecting a carrier activated with the Chargeable Weight calculation, Event will calculate the cost for you. Don't worry.
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Simply select stacked if the shipment is stackable and you will only see this if the carrier charges by Chargeable Weight
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If changing carrier Event will show you the carriers charging mechanism just so you are aware we know and the calculation includes it.
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Try selecting and deselecting 'stackable' just to see the calculation change!