How Freight Rates Are Actually Calculated

A freight quote can look like a single number, but it's built from several variables layered together. Understanding what goes into that number makes it much easier to compare quotes and spot where costs can actually be reduced.

Weight and Volume — Whichever Is Higher

Ocean and air freight are both priced on whichever is greater: the actual weight of the cargo, or its dimensional (volumetric) weight, calculated from its size. Light, bulky cargo is often priced on volume rather than weight, which surprises first-time importers who assumed a lighter shipment would automatically cost less.

The Base Rate

This is the carrier's core charge for moving cargo from origin to destination port or airport, and it fluctuates with fuel prices, capacity on a given route, and seasonal demand. Rates on the same lane can shift noticeably week to week during peak shipping periods.

Surcharges

Beyond the base rate, expect surcharges for fuel (BAF), currency fluctuation (CAF), peak season demand, and destination-specific fees like terminal handling charges. These are often where quotes from different forwarders diverge most, since surcharge structures vary by carrier and route.

Customs, Documentation, and Handling

Customs clearance fees, documentation preparation, and handling charges at origin and destination add to the total, and are typically where a forwarder's own service fee is reflected rather than the carrier's rate.

Why Two Quotes Rarely Match

Because base rates, surcharges, and service fees all vary by forwarder and route, two quotes for the same shipment can differ significantly without either one being wrong. The more useful comparison is what's included in each quote, not just the bottom-line number.

Flagship Forwarding provides itemised quotes so you can see exactly what's driving the cost of a shipment. Contact us for a breakdown on your next quote.