Assuming that an ocean carrier or a freight consolidator offers an exporter US$65 W/M for the shipment of 665 cartons of product DX.
The gross weight of each carton is 10.5 kgs. and its length-width-height is 1.5' x 1' x 1', which is 1.5 cu. ft. or 0.04248 CBM per carton.
The specified weight is per 1,000 kgs. and measure is per cubic meter.
The consignment has a weight of 6,982.5 kgs. (i.e., 10.5 kgs. x 665) and a measure of 997.5 cu. ft. (i.e., 1.5 cu. ft. x 665) or 28.25 CBM (i.e., 0.04248 CBM x 665).
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Freight Cost Calculation | |||
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The freight cost by weight is: | |||
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US$65 x (6,982.5 |
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US$ 453.86 |
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The freight cost by measure is: | |||
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US$65 x 28.25 |
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US$ 1,836.25 |
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The measure of product DX is large in relation to its weight, that is, the freight cost by measure gives the carrier or the consolidator a higher revenue, thus the exporter pays US$1,836.25.