📦 How Do I Calculate Freight Rates? | A Simple Guide to Smarter Shipping

In today’s interconnected world, freight plays a crucial role in trade, e-commerce, and logistics. But if you're new to shipping goods—either locally or internationally—you might find yourself asking: "How do I calculate freight rates?"

Don't worry—we’ve got you covered with a step-by-step guide that breaks it down in plain English.https://www.arc-worldwide.com/import/sea-freight-from-norway-to-india.html

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🚛 What Is a Freight Rate?

A freight rate is the price charged by a carrier to move goods from one place to another. It depends on multiple factors including:

• Weight & volume of the cargo

• Mode of transportation (air, sea, road, rail)

• Distance

• Type of goods

• Surcharges and customs duties

Freight rates aren't one-size-fits-all—they’re customized based on each shipment.

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📐 Step-by-Step: How to Calculate Freight Rates

✅ Step 1: Know Your Cargo Details

To begin, gather the following:

• Weight of the cargo (in kg or lbs)

• Dimensions (Length × Width × Height)

• Type of packaging (pallet, crate, box)

• Nature of goods (fragile, hazardous, perishable)

This information is crucial for calculating volumetric weight, especially for air and sea freight.https://www.arc-worldwide.com/export/sea-freight-from-india-to-australia.html

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📦 Step 2: Calculate Volumetric Weight (if needed)

✈️ For Air Freight:

Volumetric Weight (kg) = (L × W × H in cm) / 6000

🚢 For Sea Freight:

Usually charged per CBM (Cubic Meter).

CBM = (L × W × H in meters) × Quantity

The higher of actual weight or volumetric weight is used to calculate the final freight rate.

https://www.arc-worldwide.com/import/air-freight-from-canada-to-india.html

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🚚 Step 3: Determine the Mode of Transport

Each mode has its own cost dynamics:

• Air Freight: Faster but expensive, best for small/high-value items.

• Sea Freight: Cheaper but slower, ideal for bulky goods.

• Road Freight: Cost-effective for short distances.

• Rail Freight: Economical for inland mass shipments.

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🌎 Step 4: Calculate Based on Route and Destination

Longer distances typically mean higher rates. International freight may also include:

• Port fees

• Customs clearance charges

• Fuel surcharges

• Delivery to final destination (door delivery)

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💸 Step 5: Add Surcharges & Fees

Freight quotes often exclude additional charges, such as:

• Documentation fee

• Terminal handling charges (THC)

• Warehousing fee

• GST, customs, or import duties

Always ask for a "landed cost" to get a full picture of what you'll pay.https://www.arc-worldwide.com/import/sea-freight-from-bangkok-to-delhi.html

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🧮 Example:

You're shipping 10 boxes each measuring 50×50×50 cm, weighing 20 kg each, via air.

• Total volume: (0.5 × 0.5 × 0.5) × 10 = 1.25 CBM

• Volumetric weight: (50×50×50 / 6000) = 20.8 kg per box = 208 kg total

• Actual weight = 20 × 10 = 200 kg

• Chargeable weight = 208 kg (since it’s higher)

If air freight is $3/kg:
Total freight cost = 208 × $3 = $624

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✨ Pro Tips:

• 📉 Compare multiple quotes before choosing a forwarder.

• 📋 Always clarify if the rate is port-to-port, door-to-door, or door-to-port.

• 🧾 Use online freight calculators or work with logistics professionals for accuracy.https://www.arc-worldwide.com/import/sea-freight-from-vietnam-to-mundra-port-gujarat.html

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🧭 Final Thoughts

Calculating freight rates may seem complex at first, but once you understand the key variables, it becomes much simpler. Whether you’re a small business, exporter, or just starting your shipping journey, knowing how freight costs are calculated can save you time and money.