Understanding Cubic Feet (CFT) Calculation in Transportation

Ever wondered WHY Logistics companies use a measure called CFT and CFT ration for calculation of freight? Here is primer to explain the same:

1. Volume Measurement: Cargo volume can be measured in cubic centimeters (cm3), cubic meters (m3), or cubic feet (CFT) depending on the unit of measure (UoM) used by the LSP. Conversion between these units is straightforward: 1?m3=35.315?CFT1 \, \text{m}^3 = 35.315 \, \text{CFT} 1?CFT=28,316.8?cm31 \, \text{CFT} = 28,316.8 \, \text{cm}^3
2. Freight Calculation: Once volume is known, LSPs apply different pricing rates based on the mode of transport: Air Freight (High speed, high cost) Surface (Road Transport) (Moderate speed, moderate cost) Rail Transport (Low cost, slower delivery)
3. Rate Storage for LSPs: Each LSP provides different rates per CFT or per kg, depending on factors like: Distance (zonal rates, intercity, interstate) Weight vs. Volume (chargeable weight concept) Urgency (express vs. standard delivery) The system needs to store LSP-wise rates along with the UoM (per kg, per CFT, per shipment, etc.).

Application by Example Indian LSPs

Each LSP applies the CFT calculation differently based on their pricing models:

1. Blue Dart (Express Air & Surface)

• Uses volumetric weight for air cargo: Formula: Volumetric?Weight?(kg)=Length(cm)×Breadth(cm)×Height(cm)5000\text{Volumetric Weight (kg)} = \frac{\text{Length} (\text{cm}) \times \text{Breadth} (\text{cm}) \times \text{Height} (\text{cm})}{5000} Charges the higher of actual weight or volumetric weight.
• Stores rates per kg for air and CFT for surface.

2. Safexpress (Road Express & Surface)

• More dependent on CFT-based pricing for bulk shipments.
• Different rates for FTL (Full Truck Load) vs. LTL (Less than Truck Load).
• Volume-based pricing is more common than weight-based pricing.

3. CriticaLog (Specialized Logistics)

• Handles time-sensitive and high-value shipments.
• Uses both volumetric weight and CFT pricing based on shipment type.
• Often has premium pricing for urgent deliveries.

Final Calculation Formula

1. Identify Package Volume: Convert dimensions to required UoM (CFT, m3, etc.).
2. Apply LSP-Specific Rate: Multiply by the rate per CFT/kg stored for each LSP.
3. Compute Total Cost: If multiple packages, sum up the values. Compare across LSPs for the best cost-effective solution.

This structured approach ensures efficient logistics cost optimization across various LSPs in India. ??????

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Why Do We Use Cubic (Volumetric) Weight Instead of Just Physical Weight?

In logistics and transportation, using only physical weight (kg) would not be fair or efficient because cargo takes up space as well as weight. The cubic weight (also called volumetric weight) concept ensures that bulky but lightweight shipments are charged fairly for the space they occupy in a vehicle, airplane, or container.        

Key Reasons for Using Cubic (Volumetric) Weight

1. Space Utilization in Transportation

• A truck, airplane, or rail container has both weight limits (kg) and space limits (cubic feet/meters).
• Example: A box of feathers (10 kg but very large in volume) will occupy more space than a 10 kg steel rod, but if charged only by weight, the transporter loses revenue on wasted space. Solution? Charge based on volumetric weight when it exceeds the actual weight.

2. Fair Pricing for LSPs (Logistics Service Providers)

• LSPs like Blue Dart, Safexpress, and CriticaLog need to maximize revenue per shipment.
• If only physical weight is considered, they will lose money on light but bulky shipments that take up more space.
• Cubic weight ensures a balance between space taken and revenue earned.

3. Standardization in Global Logistics

• The International Air Transport Association (IATA) and major courier companies (DHL, FedEx, UPS) follow volumetric weight pricing.
• Common formula for air cargo: Volumetric?Weight?(kg)=Length?(cm)×Width?(cm)×Height?(cm)Factor?(5000?or?6000)\text{Volumetric Weight (kg)} = \frac{\text{Length (cm)} \times \text{Width (cm)} \times \text{Height (cm)}}{\text{Factor (5000 or 6000)}} Factor 5000 (for express air cargo) Factor 6000 (for international air freight)
• Surface transport may use CFT-based pricing instead.

Example Calculation

Scenario:

• A box measuring 100 cm × 50 cm × 40 cm weighs only 20 kg.
• Using volumetric weight formula for air (5000 divisor): 100×50×405000=40?kg?(volumetric?weight)\frac{100 \times 50 \times 40}{5000} = 40 \text{ kg (volumetric weight)}
• The LSP will charge for 40 kg, not 20 kg because the box takes up space inefficiently.

Conclusion: Why Not Just Use Physical Weight?

? Ensures fair pricing for both customers and logistics providers.

?Maximizes vehicle/airplane/container space utilization.

?Standardized across global logistics networks.

?Helps logistics companies optimize revenue and efficiency.

Thus, cubic weight is essential for balancing both weight-based and space-based pricing in transportation.

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