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How should the freight of export agency be reasonably apportioned?

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I am engaged in foreign trade business. Recently, I exported goods through an export agency company. I'm a bit confused about the apportionment of freight. I'd like to know how the freight of export agency is generally apportioned. Is it by the weight, volume of the goods, or other standards? I hope everyone can tell me the specific apportionment methods and the key points that need to be noted, so that I can calculate the cost reasonably and avoid unnecessary losses.

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Professional consultant answers

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

The common ways of apportioning the freight of export agency are as follows. Apportioning by weight is applicable to heavy goods. The calculation method is: Freight apportioned to each piece of goods = Total freight ÷ Total weight of goods × Weight of a single piece of goods. Apportioning by volume is mostly used for bulky goods (light goods). Freight apportioned to each piece of goods = Total freight ÷ Total volume of goods × Volume of a single piece of goods. It can also be apportioned according to the proportion of the value of the goods. The formula is: Freight apportioned to each piece of goods = Total freight × (Value of a single piece of goods ÷ Total value of goods). When choosing the apportionment method, one should consider the characteristics of the goods. For heavy goods, choose the apportionment by weight; for bulky goods, choose the apportionment by volume; for goods with significant differences in value, the apportionment by the proportion of the value of the goods can be considered. Meanwhile, one should pay attention to whether there are any special stipulations on the apportionment of freight in the export agency contract to avoid subsequent disputes.

In addition, one should also pay attention to the additional costs that may arise during the transportation process, such as fuel surcharges, port congestion fees, etc. These should all be reasonably apportioned to the cost of the goods.

Emily Liu
Emily LiuYears of service:10Customer Rating:5.0

Settlement and payment expertConsult

If the specifications of the goods are relatively uniform, apportioning by the number of pieces is also feasible, that is, dividing the total freight by the total number of pieces of goods to obtain the freight apportioned to each piece. However, this method is applicable to the situation where the weight, volume, and value of the goods do not vary much.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

Sometimes, the weight and volume are also considered comprehensively. For example, calculate the volumetric weight (Length × Width × Height ÷ Volumetric weight conversion coefficient), and then compare it with the actual weight, and take the larger value to participate in the calculation of freight apportionment. This is more common in international express delivery.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

If the characteristics of different products in a batch of goods vary significantly, they can be classified first. The appropriate apportionment method can be used for the same type of products, and finally, the total freight apportionment can be calculated by summarizing.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

When determining the apportionment method with the export agency, it is best to confirm it in writing. In this way, if there are any problems later, there will be a basis.

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

For the expedited freight generated by some urgent shipments, it can be accounted for separately and then apportioned to the relevant goods according to certain rules.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

Considering market factors, if a certain product is in fierce market competition, the freight can be apportioned a little less appropriately to ensure its price advantage.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

It can also be apportioned according to the requirements of different customers. For example, for long-term cooperative customers or customers with large quantities, certain freight apportionment discounts can be given.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

For goods with high added value and light weight, apportioning by the proportion of the value of the goods can reflect the cost more reasonably and also balance the overall profit.

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