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What Is a Freight Rate?

A freight rate refers to the cost you need to pay to transport goods from the point of origin to the destination. This rate varies depending on several factors, including:

• Mode of transport: road, sea, air, or rail.
• Shipping distance.
• Weight and dimensions of the cargo.
• Nature of the goods: fragile, hazardous, high-value items, etc.
• Additional fees: packaging, warehousing, insurance, fuel surcharge, security fees, and more.

Common Types of Freight Rates

Key Factors Affecting Freight Rates

Type of Goods
Fragile, hazardous, or high-value items typically incur higher rates due to special handling and packaging requirements.

Weight and Dimensions
Heavier or bulkier cargo leads to higher freight charges.
Rates are usually calculated based on either the Actual Weight (AW) or Dimensional Weight (DW)—whichever is greater.

Shipping Distance
Longer distances result in higher fuel consumption and transit times, increasing costs.

Delivery Time
Express or time-sensitive deliveries are priced higher than standard services.

Surcharges
Additional fees may include fuel surcharge, security fee, cargo handling fee, port charges, insurance, etc.

>> Read more: Summary Table of Logistics Fees During Freight Transport

How to Calculate Freight Charges by Transport Mode

Road Freight Calculation

Formula:

Freight Cost = Cargo Weight × Rate per Delivery Zone

Weight Consideration:

• Lightweight cargo: Calculated by actual weight (kg).

• Heavy or bulky cargo: Converted using:

Dimensional Weight (kg) = (Length × Width × Height) / 5000 (unit: cm)

Example:
A package measuring 100 × 80 × 60 cm →
Dimensional Weight = (100×80×60)/5000 = 96 kg
The chargeable weight will be the greater of actual or dimensional weight.

Sea Freight Calculation

Units Used: CBM (m³) or KGS (kg)

CBM Formula:

CBM = (Length × Width × Height × Number of Packages) / 1,000,000 (unit: cm)

Classification:

• If 1 ton ≥ 3 CBM → light cargo → charged by CBM

• If 1 ton < 3 CBM → heavy cargo → charged by KGS

Other Factors:
Depends on shipping routes, destination ports, carrier rates, and timing.

Air Freight Calculation

Based on IATA standards:

• Compare Actual Weight (AW) and Dimensional Weight (DW).

• Use the higher value to determine the chargeable weight.

Dimensional Weight Formula:

DW (kg) = (Length × Width × Height) / 6000 (unit: cm)

Freight Rate Formula:

Freight Rate = Unit Price × Chargeable Weight (AW or DW, whichever is higher)

Rail Freight Calculation

• Shipments under 20kg: charged by actual weight.

• 20kg or more: any fraction under 5kg is rounded up.

• Full wagon shipments: based on technical capacity of the wagon:

Freight Cost = Unit Price × Weight (tons) × Distance (km)

Tips to Reduce Freight Costs Effectively

• Optimize cargo volume: consolidate shipments or use groupage services.
• Choose the right mode: for bulky but non-urgent cargo, opt for sea freight instead of air.
• Smart packaging: reduce volume to lower dimensional weight.
• Plan ahead: avoid last-minute bookings that may incur express surcharges.

Need a Freight Quote for Exporting Goods Worldwide?

King Freight Logistics Vietnam (KFLV) offers comprehensive freight forwarding solutions:

• Flexible shipping options: sea and air freight.
• Customs clearance support: minimizing risks and delays.
• Cost-optimized solutions: for both small parcels and bulk shipments.
• Expert consulting team: end-to-end support throughout your export journey.

With extensive experience and a wide logistics network, KFLV is your trusted partner for safe, efficient, and cost-effective international shipping.
Contact us now at +84 (0) 938 188 796 for a personalized consultation and quote.