CHAPTER 1
WHAT ARE THE DIFFERENT DENSITY RATIOS?
Please download PDF to View Different Ratios Graph of examples on how to calculate different ratio for different services.
This Module is extremely important because different density ratios affect your costings. If you don’t know what they are and how your freight is calculated ( ie either on chargeable or gross weight) , it can affect your final costing and leave you with an unpleasant surprise when you receive your final bill.
In the PDF examples, I have given you 4 scenarios where the original Gross Kgs, varies completely from the final gross volume kgs which the freight will be calculated on.
CHAPTER 2
Example of Ratio difference between Sea, Air and Road
AIRFREIGHT EXAMPLE | 1 CUBIC: 167 KGS
The enclosed example based on 450 kgs /3.2 cubic meters was charged at 521 Gross Volume Kgs
SEAFREIGHT EXAMPLE | 1 CUBIC : 1000 KGS
The enclosed example based on 3,500 kgs 9.60 cubic was charged at 9600 Gross Volume Kgs
or 9.60 Cubic meters
ROAD FREIGHT EXAMPLE | 1 CUBIC : 300 KGS
The enclosed example based on 550 kgs , 4.32 cubic was charge at 1,296 Gross Volume Kgs
1 CUBIC IN ROAD FREIGHT (AUSTRALIA) = 250 KGS
ROAD FREIGHT EXAMPLE | 1 CUBIC: 250 KGS **
The enclosed example is based on 550 Kgs , 4.32 cubic but was charged at 1,080 Gross Volume Kgs
Road Transport Companies **
Some road transport companies will convert their cubic to kgs (depending on the commodity dimensions and if oversize cargo) at a different density ratio of 1 cubic = 250 kgs
Always read the small print and remember that you will always be charged on “which ever greater “meaning that it will be based on either the actual weight or the volumetric weight.
Dense vs Volume cargo
If you import cargo that is heavy like machinery it is considered Dense Cargo as the weight will be greater than the volume
If you import cargo that is light, like chairs, it will be considered as Volume Cargo, as the volume will be greater than the weight.
Trick of the Trade and Recommendations:
As a start-up company, you need to ensure your costing is based on the correct numbers as you can see from the sample exercises, unless you understand the difference in ratios, you might be prone to cost your cargo on the wrong dimensions and loose profits.
Let me give you a simple example which I always use. Let say you have a shipment of chairs that you want to bring in . You feel the product is light, and therefore not heavy so you might want to bring it in by airfreight, but you forget that the ratio in airfreight ( 1: 167 ) is well below what you can bring in by Sea ( 1: 1000 ) and therefore your chairs will be considered volume cargo and will be charged at a greater volume.
It is important that when you ask your shipping agent to give you a costing, don’t forget to always give them the following information:
Gross weight of your cargo
The dimensions of the boxes or pallet ie : Length x width x height
How many boxes or Pallets
You can then make an informed decision, based on the correct volume kgs that the shipment will be quoted on.