When is a kilogram not a kilogram? Answer, when its a cubic kilogram.

Time and time again we have customers complaining about freight rates from southern suppliers. They tell us they ask how much a kilo the freight rate is and yet they still get charged way more than they expected. The reason is cubic measurement and basic charge (also known as con note fee).

Almost all freight companies charge a minimum base fee per consignment. This can vary from $15 to $50. They then add the freight rate to this base fee. Thats the first hidden charge but not the last. The really sneaky charge is the volume rate. Freight companies use a formula to convert the volume area to a weight factor per cubic metre of space. Generally this is 300 kilograms per cubic metre of space. This means that light bulky items are much dearer than expected.

As an example lets pretend you order a standard 60 brick box of Oasis floral foam from Brisbane. The actual weight is 4 kg but the volume weight based on the 300kg per cubic metre formula is 34kg. You get quoted 60 cents a kilo by truck and think this will only cost a few dollars so I will add a few items to bring it up to the minimum charge of say $20. You add some other bits and pieces and reconfirm the freight rate with the supplier who says yeah its only 60 cents a kilo and the minimum fee is $20. The product arrives a week later and suddenly the freight has jumped to over $45.

So how can this be? How can what you thought would be $20 freight more than double? The breakdown goes like this. Firstly the so called minimum charge or con note fee is actually a fixed charge to which they add the total weight charge. The volume weight for your box of foam is 34kg and the few extras were say 8kg. The actual weight is only around 10kg and still under what you thought would be a minimum charge of $20. The reality is $20 basic fee plus 42kg @ .60kg for a total charge of $45.20. The box of foam that you thought was $15 cheaper than our Cairns price has actually cost you about $20 more by the time you received it.

The reason we can save you so much on freight is pallet rates. We pay a flat rate per pallet which is 1.2m x 1.2m x 2.7m high. There is no cubic measurement applied to pallet rates. Virtually every order we bring in is a full pallet quantity or more. This is how we can compete with even the biggest city wholesalers.