How Are Freight Rates Calculated?

How Are Freight Rates Calculated?

 

Table of Contents

• Introduction
  • How Are Freight Rates Calculated?
• Sea and Air Freight Rates
  • Sea Freight Rates
    • LCL (Less than Container Load)
    • FCL (Full Container Load)
    • RORO (Roll-On Roll-Off)
  • Air Freight Rates
    • Air Cargo Guidelines
• Additional Information
  • How Cargo Type Affects Freight Rates
  • Additional Charges That May Apply
  • Clear Pricing Starts With Accurate Information.

Introduction

How Are Freight Rates Calculated?

One of the most common questions we receive is: How exactly are freight rates calculated?

Freight pricing isn’t random. They are calculated using measurable factors such as shipment dimensions, weight, cargo type, handling requirements, and the type of shipping service selected. Whether shipping by LCL, FCL, RORO, or air freight, understanding these basics helps businesses estimate cargo shipping costs more accurately and avoid unexpected charges.

Here is how freight pricing works.

 

Sea, and Air Freight Rates

 

Sea Freight Rates

Sea freight rates vary depending on the type of shipment. At JTRANS, we handle several sea freight options, including LCL, FCL, consolidated shipments, and RORO.

FCL (Full Container Load)

For FCL shipments, the freight rate is typically based on the container itself rather than per CBM. This means you are paying for the full container capacity, regardless of whether it is completely filled. It also depends on the destination

FCL container sizes are as follows:

20ft
40ft
40ft High cube

FCL is generally suitable for larger shipments or when a dedicated container is required.

LCL (Less than Container Load)

For LCL shipments, freight rates are based on destination, and volume. Pricing is calculated per cubic meter, also known as CBM.

The CBM calculation formula is:

Length x Width x Height ÷ 1,000,000

This gives the total cubic meters your shipment occupies inside the container. Since LCL shipments share container space with other consignments, you are charged according to the space your cargo uses.

In simple terms, the larger the shipment volume, the higher the sea freight rate.

RORO (Roll-On Roll-Off)

RORO shipping is commonly used for vehicles or wheeled cargo that can be driven onto and off the vessel. Rates are based on the CBM formula, and the destination.

At JTRANS, shipment details are reviewed carefully to ensure the most suitable sea freight option is selected for each client.

 

Air Freight Rates

Air freight rates are calculated differently. Airlines determine pricing based on destination, and what is known as the chargeable weight.

Two measurements are considered:

The gross, or actual, weight
The Volumetric weight

Volumetric weight is calculated using the following formula:

Length x Width x Height ÷ 6,000

After calculating both, whichever weight is higher becomes the chargeable weight.

Because aircraft space is limited, even lightweight but bulky shipments may result in higher air freight costs. Accurate measurements are therefore essential when requesting a quotation.

At JTRANS, both volumetric weight and gross weight are properly assessed before confirming pricing, helping clients avoid miscalculations

Air Cargo Size, and Weight Guidelines

For standard general cargo, the maximum dimensions per piece are:

Length up to 300 cm
Width up to 240 cm
Height up to 160 cm

The typical maximum weight per piece is up to 1,000 kg. Shipments exceeding these limits require special approval, which may affect handling procedures and freight charges.

We review shipment specifications in advance to ensure compliance and prevent delays.

 

Additional Information

 

How Cargo Type Affects Freight Rates

Cargo classification also plays an important role in calculation freight rates.

General cargo follows standard handling procedures.

Dangerous goods require inspection and an MSDS, or Material Safety Data Sheet. Due to safety and regulatory requirements, dangerous goods shipments involve additional processes, and pricing considerations.

Perishable cargo requires temperature controlled handling. Cooling and monitoring increase operational requirements, which impact overall freight costs.

Our team guides clients through these requirements to ensure all documentation, and handling procedures are properly managed.

 

Additional Charges That May Apply

When calculating total cargo shipping costs, operational components may also apply, including:

DNATA handling fees
DNATA Acceptance
Customs inspection

These elements form part of the overall freight process and are considered when preparing the final quotation.

Our approach is to provide clarity upfront so clients understand how each component contributes to the total shipping cost.

 

Clear Pricing Starts With Accurate Information

Freight rates are calculated based on four main elements:

Shipment dimensions
Chargeable weight
Cargo type
Selected shipping method
Handling and operational requirements

While the formulas for CBM calculation and volumetric weight are straightforward, the final freight rate depends on the complete shipment profile.

At JTRANS, we focus on accurate assessments, clear communication, and transparent quotations. Providing complete shipment details from the start allows us to offer precise pricing and ensure a smooth shipping process from origin to destination.

Contact us today for a tailored freight quotation or guidance on your next shipment