In this hypothetical situation, you are responsible for shipping material that i

Question

In this hypothetical situation, you are responsible for shipping material that is measured as volumetric cargo – CBM, which stands for Cubic Meter, to be calculated as length X width X height. Also assume that you will get charged per Freight Ton (weight, or volume, whichever is higher).

1. If the length is 1.6 meters, and the width is 3.2 meters, and the height is 2.8 meters, what is the CBM?

2. If your freight rate is quoted as USD. 10/per freight ton and the weight of the package is 2,500 kilograms, what is the freight rate in both volume and weight?

3. Which freight rate will apply?

Explanation / Answer

1). CBM = 1.6 x 3.2 x 2.8 = 14.336 cubic meter

2) Frieght charges calcualtion using weight = $10 x (2500/1000) = $ 25

Freight charges calculation using volume = $ 10 x 14.336 $ 143.36

3). As per aaumtion, that you will get charged per Freight Ton (weight, or volume, whichever is higher)

Higher among volume and weight is volume and wil be charged i.e $ 10 x 14.336 = US$ 143.36

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