here can be no surprise that, when it comes to importing any goods, cost is the most important factor. After all, the lower the cost, the better the impact on sales and eventual profits. But assessing the true cost of importing any cargo is not always a simple thing. For one, the volumetric weight can have a dramatic influence on the actual transportation charges.
The costing system applied to a particular shipment is generally dependant on the density of the goods being carried, or the amount of space that the cargo occupies in the airplane or ship. And this is where volumetric issues come into play.
At International Cargo Express, we are often asked by clients about the significance of volumetric weight, and how it might affect importation costs. The short answer is that it is hugely significant, but let us fill you in on some more of the details.
What Does Volumetric Mean?
Volumetric measurement was drawn up as a way to standardise costs, thus making cost calculation much simpler. The system rests on the idea that a single cubic metre of space accommodates a pre-agreed maximum weight or volume.
The generally accepted ratio is 1:6, or that every cubic centimetre accommodates a weight of 6kgs. This means that every cubic metre has a volumetric weight of 167kg – 100cm x 100cm x 100cm / 6000 = 166.667kg.
The system does help to make cargo costs easier to calculate, but there are a couple of facts that need to be taken into account: firstly, not everything that weighs 167kg will fit into a 1 cubic metre area; and secondly, not everything that fits a 1 cubic metre box necessarily weighs 167kg.
For example, 1,000 t-shirts will hardly weigh 100kgs but they will certainly require a larger space than a box measuring 1m in length, width and height can offer. On the other hand, 167kg of everyday hammer heads will hardly fill a box that size.
How Volumetric Measurement Affects Cost
So, how do these facts actually affect the cost of importing your cargo? Well, it depends on who wins the battle between size and weight. Airlines, for example, have a very limited space onboard, so place particular importance to the size of the boxes that are being transported – the weight is a secondary concern.
So, even if your cargo only weighs 80kgs, if it occupies an area of 1 cubic metre, then the full charge is applied. If 167kg of t-shirts require 3 boxes, you must pay for 3 times the transport cost of bringing 1 box of heavy items, even if the weight is the same.
As a result, importing light products can be more expensive than importing heavy ones. This in turn means your choice of transport – air freight or sea freight – has a definite affect on the overall cost of importing.
Making Volumetric Work For You
Volumetric weight depends on the actual size of the package or container, but the same 1:6 ratio applies. So, for example, with a box measuring 130cm x 30cm x 90cm, the volumetric weight is set at 58.5kg. In any case, most cargos are charged by the space it takes up, but most cargos are volumetric because it takes more space than it weighs.
The trick to making the volumetric system work for you is to calculate the maximum amount to pack inside the box without making the box too heavy. It will not benefit you to fill a box only three-quarter the way up, for the sake of accommodating packing material.
Contact Your ICE Team
At International Cargo Express, we offer advice to clients about how best to lower their costs. The first step is to get an accurate cubic measurement from your supplier, and after that you can calculate the volumetric weight.
Sometimes the figure is awkward, for example 33 cubic metres, which means we will advise you on whether or not to take a lightly packed 40ft container, or two 20ft containers. Again, it depends on the cargo, but the best solution may be to increase your order to make the shipment more economical. Remember, you purchase the container, so there are no extra charges for extra cargo anyway.
If you’re interested in finding out more about us, just call your nearest ICE team. We’re confident you’ll see we are the freight forwarders for you!