How to calculate chargeable weight in air, sea and road shipments?

As an exporter or an importer you have to know the gross weight and total volume of the cargo in order to calculate the transportation cost.

Each means of conveyance, such as container vessel, truck or aircraft, has a limited space.(volume constraint) Additionally there are weight limitations for all types of modes of transport. (weight constraint)

In order to sell their free spaces more efficiently, international logistics sector developed a concept, which is known as chargeable weight. 

According to this concept, first of all transport companies are calculating an hypothetical volumetric weight of the cargo to compare it with the actual gross weight of the goods.


Then, they choose the bigger amount, either actual gross weight or hypothetical volumetric weight. Result is known as the chargeable weight.

Only chargeable weight is used by international logistics companies, when calculating their freight offers.

Is it possible to use FOB incoterms with land and or air shipments?

The aim of the international commercial terms, known as incoterms, is to create a set of international standard rules for the application of the most commonly used trade terms in foreign trade.

Incoterms can only achieve its goal if it could reduce or eliminate the uncertainties of different interpretations of such terms in different countries.

ICC, International Chamber of Commerce, published latest version of international trade terms rules, which is known as Incoterms 2010. 

Incoterms 2010 rules define 11 different trade terms.

FOB, Free on Board, trade term is one of the most frequently used incoterms along with CIF and Ex Works. 

As a result every exporter or importer must understand these trade terms very well.