BAFCO

How to Quickly Determine Shipment Expenses Using a Freight Cost Calculator

Transporting items from one location to another can be difficult, especially when figuring out shipping prices. The cost of shipping your items can be easily estimated using freight cost calculators. In this post, we will explore how to use a freight cost calculator and how it may help you save time and money.

What does a freight cost estimator do?

With a freight cost calculator, which is a straightforward tool, you can calculate your shipment’s transportation costs based on its weight, size, and destination. You can get a ballpark figure from these calculators for the price of shipping your items. Freight cost calculators are readily available online for free from many businesses, including freight forwarders, carriers, and logistics providers.

Advantages of Freight Cost Calculators

You can save time and money by using a freight cost calculator. The following are some advantages of employing a freight cost estimator:

Rough calculations

Simple algorithms are used by freight cost calculators to provide you approximations of the costs associated with shipping your items. This entails that you can obtain a rough estimate of the cost of shipping your items, which can help you organise your budget and prevent unforeseen expenses.

Saving time

Obtaining shipping quotes from numerous suppliers might take some time, especially if you are delivering several things. You may save time by using freight cost calculators to get quick shipment cost estimates.

Formula for the Air Freight Cost Calculator and Shipment Cost Calculation

The price of air freight is determined by a number of variables, including weight, volume, destination, kind of goods, and others. In this post, we’ll define the various words used in air freight cost estimation and offer a formula to use when making an estimate. A sample cargo computation from Saudi Arabia to the United Arab Emirates will also be shown (UAE).

Words Used in Air Freight Cost Calculation

Chargeable weight: The weight of the cargo used to determine the price of air freight. Depending on which is greater, it may be either the volumetric weight or the actual weight.
Volumetric weight is a measurement of the shipment’s weight depending on how much room it takes up in the aeroplane. It is computed by multiplying the shipment’s length, width, and height by a volumetric factor, then dividing the result.

A volumetric factor is used to translate a shipment’s volume into its equal weight in kilogrammes.
The cost of the shipping per kilogramme or per cubic metre is called the freight rate.
Fuel surcharge: A fee added to the price of air freight to cover the cost of fuel.
Security expenditures are covered by a premium that is applied to the air freight price.
Charges that are imposed to cover the expense of handling the cargo at the airport are known as handling fees.
Cost-Calculating Formula for Air Freight

The Cost of Air Freight is Calculated Using the Following Formula:

Cost of air freight is calculated as follows: Fuel cost, Security surcharge, Handling fees, (Chargeable weight or Volumetric weight) x Freight rate.

Example of a Computation from Saudi Arabia to the UAE

Let’s use a hypothetical air freight estimate from Saudi Arabia to the United Arab Emirates as an example (UAE).

Let’s say we have a shipment with the information below:

200 kg actual weight
Dimensions: 2 m x 1 m x 1.5 m; shipping cost: $2.5 per kg
Fuel surcharge: 10% of the freight rate
Surcharge for security: $100
$50 handling fees

We first determine the volumetric weight before determining the chargeable weight:

(2m x 1m x 1.5m) / 5000 (volumetric factor) = 0.6 kg is the volumetric weight.

We utilise the actual weight as the charged weight because it is more than the volumetric weight.

200 kg is the chargeable weight.

Now, we can apply the formula to determine the price of air freight:

200 kg x $2.5/kg + 10% x $2.5/kg + $100 + $50 = Air Freight Expense.
Cost of Air Freight: $550

Formula for the Ocean Freight Cost Calculator and Shipping Cost Calculation

The price of ocean freight is determined by a number of variables, including weight, volume, destination, kind of goods, and more. We will define the many terms used in the calculation of ocean freight costs in this post and offer a method to determine the price of shipping ocean freight. A sample cargo computation from Saudi Arabia to the United Arab Emirates will also be shown (UAE).

Cost Calculation Algorithm for Ocean Freight

The following equation can be used to determine the cost of maritime freight:

(Chargeable weight or volumetric weight) x freight rate + BAF + CAF + THC + Documentation charge = Ocean Freight Cost.

Example of a Computation from Saudi Arabia to the UAE

Let’s use a hypothetical maritime freight estimate from Saudi Arabia to the United Arab Emirates as an example (UAE).

Let’s say we have a shipment with the information below:

Weight in reality: 5000 kg
20-foot container size
Transport cost: $500 per container
$200 per container BAF
5% of the freight rate is CAF.
Cannabis: $100/container
Fee for documentation: $50

We first determine the volumetric weight before determining the chargeable weight:

Volumetric weight equals 20 feet by one TEU (20 feet equivalent unit) equals 24000 kilogrammes.

We utilise the volumetric weight as the charged weight because the actual weight is less than the volumetric weight.

Weight to be charged is 24000 kg.

Now, we can apply the formula to determine the price of ocean freight:

Cost of Ocean Freight: 24000 kg x $500 per container, $200 per container, (5% x $500 per container), $100 per container, and $50 per container.
Cost of Ocean Freight: $12650

Chart of Potential Freight Costs for 20- and 40-foot Containers

Container Size	Source	Destination	Approximate Rate (USD)	Approximate Shipping Time (Days)
20ft	Saudi Arabia	United States	$1,500 – $3,000	25 – 40
20ft	Saudi Arabia	United Kingdom	$1,000 – $2,500	20 – 35
20ft	Saudi Arabia	China	$1,000 – $2,500	20 – 35
20ft	Saudi Arabia	Japan	$1,500 – $3,000	25 – 40
20ft	Saudi Arabia	Germany	$1,000 – $2,500	20 – 35
40ft	Saudi Arabia	United States	$2,500 – $5,000	25 – 40
40ft	Saudi Arabia	United Kingdom	$2,000 – $4,000	20 – 35
40ft	Saudi Arabia	China	$2,000 – $4,000	20 – 35
40ft	Saudi Arabia	Japan	$2,500 – $5,000	25 – 40
40ft	Saudi Arabia	Germany	$2,000 – $4,000	20 – 35
20ft	Saudi Arabia	Australia	$1,500 – $3,000	25 – 40
20ft	Saudi Arabia	Canada	$1,500 – $3,000	25 – 40
40ft	Saudi Arabia	Australia	$2,500 – $5,000	25 – 40
40ft	Saudi Arabia	Canada	$2,500 – $5,000	25 – 40
20ft	Saudi Arabia	United Arab Emirates	$500 – $1,500	5 – 10

Note: Based on variables such the time of year, carrier, and kind of cargo, the rates and shipping times given in the table are approximations and are subject to change. It’s usually advisable to receive a tailored quote for your particular needs from a freight forwarder or carrier.

In conclusion, anyone who wants to send goods can benefit from using freight cost calculators. They help you save time, evaluate prices from several carriers, and give you precise shipping cost estimates. You may simply determine shipping costs and select the ideal carrier for your needs by following the straightforward methods described in this article.

FAQs