Groupage cargo refers to the transportation of multiple shipments in a single vehicle (truck, airplane, or container). In road freight, this method is called LTL (Less Truck Load), while in container shipping, it is referred to as LCL (Less Than Container Load).
How is Chargeable Weight Calculated?
When invoicing for groupage shipments, carriers consider both the weight and volume of the cargo. To standardize pricing, they use chargeable weight, which is a conditional weight calculated based on the cargo’s volume.
What is LDM and How is it Measured?
LDM (Loading Meter) is a unit used to calculate cargo space in a truck. One LDM corresponds to the area of one linear meter of the truck’s loading surface.
Example Calculation of LDM:
- Truck length: 13.6 m
- Width: 2.45 m
- Height: 2.4 m
Formula:
1 LDM = 2.45 m × 2.4 m = 5.88 m²
If your cargo occupies 1 meter of the truck’s length, its area will be 5.88 m². If it occupies 3 meters, it will be 3 LDM.
How to Calculate Chargeable Weight?
For road freight, the following conversion rates apply:
- 1 m³ = 333 kg
- 1 LDM = 1850 kg
To Determine the Shipping Cost:
- Calculate the cargo’s volume (length × width × height).
- Convert the result into cubic meters.
- Multiply the volume by 333 kg.
- Compare the obtained value with the actual cargo weight.
- The higher value is the chargeable weight.
Why is this Important?
Proper LDM and chargeable weight calculations help logistics companies optimize space in transport, avoid overloading, and ensure fair pricing for customers.