How To Calculate Freight Rates - For Beginner Freight Forwarders

When it comes to freight rates, you don't always get a fixed price. Rates are quoted as "weight measure" (WM) or "volume metric" (VM), it's up to you to calculate the actual cost based on a formula. Alan Bracken from ABTS® explains the formula for each and how to calculate the rate.

0:00 Introduction
1:30 Sea Freight Rates - Weight Measure Formula
2:34 Weight Measure Example
4:05 Air Freight Rates
4:50 Volume Metric Formula
6:20 Volume Metric Formula - Example One
7:35 Volume Metric Formula - Example Two

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[nikhilsatheesan]

Very informative and explained in detail!

[jimmygeorge]

I recently joined in a freight forwarding company. Your videos are so informative and helpful for me. Thank you so much for your great efforts.

[sarmindojoseraul]

A video very and very relevant. Thank you.

[AbigailAidela]

When I was little I visited my dad’s office a couple times, he worked as HR manager in logistics firms, my favorite was Panalpina before it closed up in Nigeria, I grew up having so much love and passion for Logistics because of how much my dad talks about it like it is the most important job in the world 😅 he had so much love for it though he is retired now. I love to watch your videos cause I see the same love and passion my dad had and I’m getting so much knowledge from you. I’m sure my dad will love you so much as well. Thank you Mr Alan, I couldn’t have found better mentorship🙏

[mohandouamarsihadjmohand]

hello ABTS thank u so much for your videos, very instructive and clear, also well focused 👍👍👍👍👍👍

[NguyenKhanhDuya]

This video is very easy to understand. You just help me out alot.Thanks very much
By the way im right now really getting confused about the types of air rates such as minimum charges, general cargo rates, etc... Could you make a video about that ? Still thanks you very much

[victorllorens]

Thank you so much for the explanation. Will the freight forwarder always choose the more expensive of the two? Or is that negotiable? And can you explain what you mean by “volume out”. Thanks again!

[davidthompson]

Do you have any recommedations now that Lloyd's Loading List has shut down?

[Lobos]

It should be mentioned though that freight rate is NOT all the costs. You have fuel, security, TACT vs Q-Rate (Air: TACT is "standard rates" used before, but you put them on the Master Airway bill to hide what your actual prices are. The real rate goes on the House AW that is only between you and the customer, Q rate or similar products are basically a discount within given weight rates so up to 45Kg, +45KG, +100 etc. In some case, if you for example are close to 100, but just under. The rates at 100 might be slightly lower than +45. Which in turn means you should ask for rate 100kg in that case), terminal handling fees, documentation, LCL extra fee vs FCL all in and so on. It is the fess that will eat your margins. Like my teacher told me: "Look for ZEROS!" What he meant by that is look for companies, in between freight forwards, ship companies, agents etc which have zero on some fees others tend to charge for (Edit: This means also look for fees that are missing, which also means they do not charge for that, same thing) that makes the total cost for you cheaper in context of A to B.

[joey_]

Hello Mr. Alan I have a question regarding your video or if anyone can explain to me how did he get 402.37 kg. what calculator did you use to get that or how did he convert the centimeters to kg for his answer. Thank you.

[sujirao]

Hows that Some freight forwarxers say zero freight charge?? Then how r they managinh.. i am confused . Kindly explain sir

[rabarazad]

Hello Mr. Alan, Thank you so much for the useful information you are giving us, May I ask, if a seller asks the buyer to pay the entire contracted amount in T/T payment against signed FCO, sales contract and Proforma invoice by the bank, is that a reliable method of payment in international trade? Can the buyer be refunded in case of non-delivery or non-acceptable quality of the product? (Seller is a known company with a prominent website and address). I highly appreciate your reply.

Thank you.

[julioquirino]

Dear Sir, would you be able to help me to understand something? I am planning to start a food import business. So I will need a reefer container. Is it better to buy my own container? How much would save me in the long run to buy a container?

[syedfaisalshah]

Please carryon telling us the truth. We want to hear you!