Verified Mathematical Model & Formulation
Total Freight = (Billable Unit × Base Rate) + Fuel Surcharge + Terminal Handling (THC) + Documentation
Calculates the complete landed freight invoice by aggregating the rate per billable unit (CBM or kg) with standard origin and destination surcharges.
Configurable Parameters & Standard Units
- Chargeable Units (kg or CBM): (Default: 300 count)
- Base Rate per Unit ($): (Default: 4.5 usd)
- Fuel Surcharge per Unit ($): (Default: 0.75 usd)
- Fixed Terminal & Doc Fees ($): (Default: 125 usd)
Standard Worked Example & Practical Verification
Scenario: Shipping 350 kg air freight at $4.50/kg with $0.80/kg fuel surcharge and $150 terminal docs.
Calculated Solution
$2,005 Total Freight ($5.73 effective/kg)
Practical Takeaway: Fuel and terminal surcharges account for ~21% of the total freight invoice.
Frequently Asked Questions
What is BAF and THC in freight quotes?
BAF is Bunker Adjustment Factor (fuel surcharge for ships), and THC is Terminal Handling Charges levied by sea port or air terminal operators.