How to calculate chargeable weight under airfreight in exports?

Posted on 08 April 2023 Category : For Beginners

The information provided here is part of Export Import Training course online

How to calculate chargeable weight under airfreight in exports and imports.

Freight charge under air shipment is calculated on the basis of weight of cargo. Commonly a question arises here, whether actual weight or chargeable weight?

In an air shipment, airfreight charge is calculated on the basis of actual weight or volume weight, which ever is higher. Then what is Volume weight? How to find volume weight?

Chargeable weight is an equilibrium point where in actual weight and volume of cargo balance.

Why chargeable weight in airfreight?

Let me explain the importance of volume weight in airfreight. Why do air carrier balance weight and volume of cargo?

Let me explain the importance of chargeable weight in simple terms. If a shipper exports cotton, the actual weight of cotton is very low but occupies a good amount of space as a volume. In this case, if airfreight is charges on the basis of actual weight of cargo, the said shipper needs to pay a very nominal airfreight compared to a shipper who exports iron plates. Am I right? Here is the importance of volume weight by considering volume of cargo and actual weight of cargo at an equilibrium point.

Calculation of chargeable weight in airfreight.

In order to find volume weight of cargo you need to have measurement of package of goods.If the cargo measurement are in centimeters, the total volume of cm3 to be divided with 6000. In other words, if the volume is in cubic meter (CBM), the said volume in M3 to be divided with 0.006. Air carriers charge airfreight on the basis of volume weight or actual gross weight which ever is higher.

So the chargeable weight is calculated on the basis of volume weight or gross weight, whichever is highter.

Let me explain to calculate volume weight weight in simple language to make understand easily. I am going to explain with 3 examples, the method of calculation of chargeable airfreight for export shipments.

You have three shipments to be exported separately. Measurement of cargo length, width and height

Shipment 1:

Gross weight =750kgs

Measurement of cargo = 102cm X 98cm X 106cm = 1 box
80cm X 65cm X 103cm = 3 boxes

Total volume = 1059576 +(535600X3) = 2666376 cubic centimeter

Total volume weight = 2666376 / 6000 = 444.396kgs

Here in shipment No: 1, the gross weight is 750kgs and volume weight is 444.396kgs. Hence, Chargeable weight is 750 kgs which is also gross weight, 750kgs (which is greater)

Shipment 2:

Gross weight = 850kgs

Measurement of cargo = 120cm X 160cm X 115cm = 2 boxes
75cm X 130cm X 125cm = 2 boxes

Total volume = 4416000 + 2437500 =6853500 cubic centimeter

Total volume weight = 6853500 / 6000 = 1142.25kgs

Here in shipment No:2, the gross weight is 850kgs and volume weight is 1142.25kgs. Hence, airfreight is charged on the basis of volume weight, 1142.25kgs. Here, the chargeable weight is 1142.25kgs.

Shipment 3:

Gross weight : 950kgs.

Measurement of cargo = 1 meter X 1.05 meter X 0.85 meter = 2 boxes
0.7 meter X 1.50 meter X 0.60 meter= 3 boxes

Total volume = (0.8925 X 2) + ( 0.63 X 3)
1.785 + 1.89 = 3.675 cubic meter

Total volume weight = 3.675 / .006 = 612.50kgs

Although almost all airlines calculate volume weight on the basis of above calculation (6000), FEDEX calculate volume weight on the basis of 5000.

Here in shipment No:3, the gross weight is 950kgs and volume weight is 612.50kgs. Hence, airfreight is charged on the basis of actual gross weight of 950kgs which is greater than volume weight. So chargeable weight under this shipment no.3 is 950kgs. Also note, the measurement in shipment 3 is in meter and volume calculation also may be noted.

Also read - Why do carriers balance weight and volume while charging freight amount in Exports?

How to calculate CBM in LCL export shipments

I hope, I could explain in simple language about calculation of chargeable weight.

Would you like to share your experience in handling chargeable weight in air exports or air imports?

The above information is a part of Import Export Training course online

Write below your comments about chargeable weight.

Other details on how to import export

How to calculate CBM in LCL export shipments:

Why carriers balancing weight and volume while charging freight amount in Exports?

What is consolidation of cargo What is LCL cargo less container load cargo

What is Surrender of Bill of Lading

Consequences of wrong declaration of weight

Difference between DDU and DAP

Excise and Customs - Click here to read complete notification under Budget 2014

How to get Export Orders?

How to settle dispute in Exports and Imports?

Click here to know India Trade Classification(ITC)

Click here to know HS code of other product/commodity

Pre shipment bank finance to suppliers for exports through other agencies

Types of export containers
Measurement of export containers
Export Import Policy of India 2015-20
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation

Refund of Input Tax Credit (ITC) of GST, FAQ
Migration procedures for existing VAT payers to GST online in India
Refund of GST paid in India, FAQ
4 Conditions when applying for refund of Input Tax Credit (ITC) under GST
Enrolling an existing VAT taxpayers at the GST Common Portal
Difference between types of goods and services and types of GST
4 types of Goods and Services in India for GST rate
Difference between IGST on International goods and IGST on domestic goods.
Navigation controls to enroll with GST in India for existing VAT payers in India How is IGST calculated under Imports?
How is IGST rate on imports treated?
How to register a Digital Signature Certificate under GST in India.GST and e-Commerce Business, FAQ
Definition of E-Commerce under GST
How to identify the steps in enrolment process of a tax payer at the GST common portal.
TDS under GST, Frequently Asked Questions
Does Interest attract on GST Tax payment delay?
Step by step procedure to login with GST common portal in India
Mechanism of Payment of GST tax in India
Levy of late fee for GST Tax returns filing in India
I pay Service Tax on my services. But I am not sure how do I pay the new GST?
Notice to GST return filing defaulters
When to file Annual Return of GST online?

Changes of operation of SEZ

Does CVD exists under project imports?

Baggage clearance after GST implementation

Refund of SAD paid on imports

How to claim ITC under imports?

Union territory tax (Rate) Notification No. 46 of 2017 DT 14th November, 2017, GST

Integrated Tax (Rate) Notification No. 49 of 2017 DT 14th November, 2017, GST

Central Tax Notification No 40 of 2017 dt 13th October, 2017 under GST

CUSTOMS Notification No. 77 of 2017 dt 13th October, 2017

Integrated Tax Notification No. 10 of 2017 DT 13th October, 2017, GST

Minimized GST rates on Pots, jars and similar articles under HSN 6909

Comments

Gokara Sunil: On 18 June 2013 What is reason/base for taking 6000 for the calculation of chargeable weight.

surendran: On 07 November 2013 May be equilibrium

zara: On 19 December 2013 hello, thanks for posting all these useful examples. on example no 3, why didnt you divide the m3 by 6000 ? you did it by .006 ? thanks

Surendran Kollerath: On 18 April 2014 Hi Zara, This is as per standard calculation method accepted the authorities worldwide

andrew: On 25 May 2014 Thanks for this. The problem I am having relates to an exam question on providing costs to several companies. An aircraft is chartered at USD 105,000 which has a capacity of 38mt/166cbm. Several companies want to load their cargo onto the plane which will result in some paying actual weight and some paying chargeable weight. How do you split the costs so that they meet at USD105,000? Do you divide the USD105,000 by mt and use this rate to times the chareable? Thanks!

Catharine: On 18 June 2014 Hello! This was extremely helpful for me in anticipating our air freight costs. Especially when importing packing materials (foam forms), which are very light -- but take up considerable space on pallets. We were expecting the freight cost to be cheaper because they are lighter and were surprised when the real cost was revealed! Thank you for this very helpful lesson in Chargeable Weight vs Gross Weight, it has been very valuable for me!

Himanshu Wason : On 16 February 2015 I am interesting in export and import service . I just want to from where to begin and how to became CHA , when did commissioner of custom makes the announcement for new applicant to apply for CHA licence.

Admin: On 16 February 2015 Himanshu Wason, Government calls for CHA License time to time. You may contact Customs head quarters for more details and track.

Balakumar.S: On 27 October 2015 I need details for what are all the documentation require for export & import process for sea & air freight??

Kiran Sabnis : On 20 April 2016 My query is AIR CIF calculation is given as below and further added how Sea freight rate can be considered to calculate AIR Freight , i)For Air Cargo:Actual air freight, but not exceeding 20% of f.o.b value ii)Where actual sea/air freight is not ascertainable:20% of f.o.b value iii)Where actual insurance is not ascertainable:1.125% of f.o.b value Where goods are generally imported by sea but due to urgent demand they were imported by air, only sea freight is to be added. Insurance charges paid on the Customs duty are, however, not includible in the assessable value since they relate to post-importation factor. Landing charges realized by Port authorities have also to be added at the prescribed flat rate of 1% of C.I.F value, or on actual basis unless seller or his agent is under obligation to bear it as part of CIF value. Please advice on how can Sea freight calculations can be used for assessment please iadvice if there is any Customs Notification / Circular regarding this.

Bharti Narnaware: On 14 June 2016 Reason for taking 6000 for the calculation of chargeable weight?

S.Prabakaran: On 30 June 2016 what is the cost of shipping to send kilograms cocunut

Raymond Aculey: On 13 April 2017 Look, you are too good!!!!!!!!

Sanjeevanee: On 17 May 2017 Hi sir, thank you for the information . my confusion is if there are 5 Boxes consignment in that 2 Boxes are having actual weight more than volumetric weight & 3 Boxes hving more actual weight than it volumetric weight in total how this consignment will get charged ? will b considering all boxes actual weight or all boxes volumetric weight whichever is higher ? or it will b billed considering each box volumetric n actual weight means 2boxes actual Weight + 3 Boxes volumetric weight kindly advice.

Hamidul islam: On 22 September 2018 please explain how to calculate of C&F VAT & AIT & other chages

Navin Kumar: On 31 August 2021 Good day to you! Hello, my name is Navin Kumar and I work in Express Wheel Delivery. Currently, we are offering a new service called Freight Broker, whereby we will handle all logistics matters for your business. Based on your profile, I thought you would be a good contact to make this happen. If not, I might be able to speak with the person who deals with that. I'd like to speak with a decision-maker from your company responsible for the relevant service we provide. If it is you who makes those decisions, fantastic! Could we speak to talk about how Express Wheel Delivery can help your company with logistics? Among the services we offer are: 1. Airfreight 2. Sea freight 3. Ground freight 4. Customs Brokerage 5. Warehousing 6. Break bulk 7. Pick up / Delivery 8. Special Equipment 9. Insurance coverage I'm waiting for your response, I hope you can contact me soon, I appreciate your consideration of my request. Regard