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Advice on Volumetric charging, Packaging, Insurance and Fuel surcharges.

Volumetric / Dimensional Charging

 

Carriers are not only interested in the weight of a package when calculating their charges. The volume of the package may also have a bearing on the carriage calculation. The reason for this is quite straightforward: if the carrier charged by weight alone, and had no other way of calculating a price, a vehicle could be filled with a consignment that is very light (for example, a large box full of feathers). This would mean a whole vehicle would be dedicated to one low-priced consignment, not cost-effective for the carrier.

 

In order to deal with the issue of consignments with high volume but low weight, carriers usually charge on a ‘volumetric’ basis. They allow a certain volume per tonne for carriage calculation purposes. The volumes usually range between 4 and 6 cubic metres per tonne. In order to calculate the volumetric weight the three dimensions of a package (in cm) are multiplied together and the result is divided by a divisor which is dependant on the volume per tonne allowance, 4 cubic metres use 4000 as divisor and 6 cubic metres uses 6000 as divisor. The carriage is then based on the higher of the volumetric or dead (actual) weight.

 

An example:

Dimensions of package:       60cm x 50cm x 30cm

Actual weight of package:   10kg

 

Multiply the dimensions:       60 x 50 x 30 = 90,000

 

Volume allowance is 6 cubic metres per tonne therefore divisor = 6000

 

Divide by divisor:                90,000 / 6000 = 15

 

Therefore the volumetric weight is 15kg

 

The volumetric weight of 15kg is greater than the actual weight of 10kg so the carriage rates will be calculated on the package chargeable weight of 15kg.

 

It is very unusual to find parcel carriers who do not employ this type of charging in one form or another. Those that don’t will usually enforce very strict maximum dimensions on packages and charge surcharges on packages exceeding these.

 

Packaging

 

FREE standard packaging is available from most carriers, others may make small charges; we can also offer bespoke design and production of packaging to meet your needs. The packaging produced is of the highest quality and will meet all carriers’ requirements.

 

The packaging of goods, both the quality of the outer packaging and the way the items inside the packaging are packed has a significant effect on whether the goods are delivered without any damage. As a rule, if an item inside a package can move around then it is more likely to be damaged in transit. Some brief guidelines follow below:

 

  • Wrap each item in a parcel individually

  • Protect fragile items, perhaps use polystyrene chips, bubble wrap or other similar materials

  • Use a strong outer container

  • Seal the parcel well, use special carton tape not household tapes

  • Always ensure that addressing is clear and accurate, carriers may charge for re-addressing parcels.

  • Mark parcels over 25kgs as "Heavy"

Insurance

 

Insurance and liability can be an issue when delivering goods, sometime coverage in excess of the carriers’ standard liability may be required, in most cases this can be purchased from the carrier, usually at around £5.00 per £1,000 of cover.

 

We can recommend brokers that specialize in goods in transit insurance, but under FSA guidelines we are not able to offer advice directly.

 

Most carriers provide insurance based on the weight of the package being delivered, this cover varies from carrier to carrier and may be as little as £10 per kg. Insurance cover is excluded from a carriers obligations when carrying certain fragile items, particularly any items containing any glass, these items may change from time to time. Check with us before sending a consignment which you believe may be excluded.

 

Fuel Surcharges

 

In these times of rapidly fluctuating fuel prices carriers feel the need to protect themselves, to some extent, from these price changes. Rather than continually adjust their basic rates they opt to add a percentage based fuel surcharges to their services. These surcharges can change each month according to fuel price fluctuations. At the time of writing these surcharges range from 6% overland / surface to 20% for air services. It is currently rare to find a carrier that does not add a fuel surcharge to its pricing structure.

 

 

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