ITT Exercises - Freight Transportation.pdf

Actual weight 260 kg step 2 determine the volume

Info icon This preview shows pages 108–112. Sign up to view the full content.

Actual weight = 260 kg Step 2: determine the volume weight of the shipment. Volume weight = 65 x 30 x 30 cm ÷ 6,000 = 58,500 cm 3 ÷ 6,000 = 9.75 = 10 kg Step 3: determine the chargeable weight. Therefore, the chargeable weight is the actual weight = 260 kg 3. A single shipment consisting of two different kinds of cargo: fashion goods and books: x 10 cartons of fashion goods, the dimensions of each carton are 60 cm x 45 cm x 60 cm, and each carton weighs 20 kg. x 10 cartons of books, the dimension of each carton are 35 cm x 45 cm x 35 cm, and each carton weighs 24 kg.
Image of page 108

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Answers Air Freight Page | 109 2017 One method to deal with this shipment is to determine the volume weight of each piece of cargo, and then compare the totals of both, i.e., sum up the total volume weights and the total actual kg. This concept is the basis of how a freight forwarder can earn “his keep” in the business. Fashion goods: Step 1: determine the actual weight of the shipment. Actual weight = 20 kg x 10 cartons = 200 kg Step 2: determine the volume weight of the shipment. Volume weight = 60 x 45 x 60 cm x 10 ÷ 6,000 = 1,620,000 ÷ 6,000 = 270 kg Books: Step 1: determine the actual weight of the shipment. Actual weight = 24 kg x 10 cartons = 240 kg Step 2: determine the volume weight of the shipment. Volume weight = 35 x 45 x 35 cm x 10 ÷ 6,000 = 551,250 cm 3 ÷ 6,000 = 91.875 = 92 kg Step 3: determine the chargeable weight. Add up the individual volume weights in order to combine (consolidate) both goods, and add up the individual actual weights in order to combine (consolidate) both goods. Actual Weight Volume Weight 10 cartons of fashion goods: 200 kg 270 kg 10 cartons of books: 240 kg 92 kg Total 440 kg 362 kg Therefore, the chargeable weight (the weight the airline will use to charge the freight forwarder) is the combined (consolidated) actual weights = 440 kg. By CONSOLIDATING many shipments together onto one Air Waybill, the freight forwarder can make more money.
Image of page 109
Answers Air Freight Page | 110 2017 Actual Weight Volume Weight Chargeable Weight Fashion goods: 200 kg 270 kg 270 kg Books: 240 kg 92 kg 240 kg 510 kg Therefore, the freight forwarder will charge each shipper by their INDIVIDUAL chargeable weight = 270 kg and 240 kg. Just by CONSOLIDATING these two shipments, the freight forwarder has made an extra 70 kg profit! 510 kg (revenue from shippers) 440 kg (expense from airline) = 70 kg (extra profit for the freight forwarder)
Image of page 110

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Answers Air Freight Page | 111 2017 Exercise 4.6 (Answer) Calculating the Chargeable Weight for an Air Shipment 1. Vases, total weight is 100 kg, total volume is 1.234 m 3 Step 1: d etermine the actual weight of the shipment. Actual weight = 100 kg Step 2: d etermine the volume weight of the shipment. Convert m 3 to cm 3 1.234 m 3 x 1,000,000 = 123,4000 cm 3 Volume weight = 123,4000 cm 3 ÷ 6,000 = 205.66666 = 206 kg Step 3: d etermine the chargeable weight. Therefore, the chargeable weight is the volume weight = 206 kg. 2. Steel rods, total weight is 500 kg, dimensions are 70 cm x 25 cm x 25 cm (assume dimensions are the overall shipment dimensions).
Image of page 111
Image of page 112
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '18
  • Jane Smith
  • freight forwarder, Commercial item transport and distribution, CIFFA, Ocean Transportation Intermediary

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern