How Shipping Costs Are Calculated
Shipping costs depend on several factors working together. The carrier first determines the billable weight — whichever is greater between actual weight and volumetric (dimensional) weight. Then the rate is applied based on the shipping zone (distance between origin and destination) and the service level chosen.
Volumetric Weight vs Actual Weight
Carriers use volumetric weight to account for space occupied by lightweight, bulky packages. The formula is (L × W × H in cm) ÷ 5000 for air freight and ÷ 1000 for sea freight. If the volumetric weight exceeds actual weight, the carrier charges based on volumetric weight.
Shipping Modes Comparison
- Air Freight: 3–7 days transit. Best for time-sensitive, high-value goods. Most expensive per kg.
- Express (DHL/FedEx/UPS): 1–5 days. Door-to-door with tracking. Premium pricing.
- Road / LTL: 5–14 days. Good for domestic and regional. Mid-range cost.
- Sea Freight (FCL/LCL): 15–45 days. Cheapest for large/heavy shipments. Slowest transit.
Tips to Reduce Shipping Costs
- Use right-sized packaging to minimize dimensional weight
- Ship in bulk to qualify for volume discounts
- Compare rates across multiple carriers
- Use sea freight for non-urgent shipments
- Negotiate contracts with carriers for regular shipments