Determine the shipping cost for a specified period of time.  Determine the average inventory for the same period of time.If you do not know the average inventory figure, you can add the beginning inventory to the ending inventory figure and divide this sum by 2.
YRC Freight Density Calculator. Our density calculator helps you determine your freight rate. When shipping LTL freight, you must know how to handle shipment density conversions to properly describe your goods on the bill of lading. Divide the total weight of a shipment by the total cubic feet to determine the density. Step 1. Measure the height, width, and depth of the shipment in inches. If you need more information on how cubic feet and density relate to freight rates, contact your YRC Freight account executive. For example, if the skid weighs 500 pounds with dimensions of 42 inches x 48 inches x 48 inches: 1  Multiply 42 x 48 x 48 = 96,768 cubic inches. To ensure your shipment for the replacement of the goods shipped in case of total or partial loss or damage, request insurance for the replacement value of the goods=commercial invoice value. PWS sells insurance for $0.60/$100.00 insured value with a $12.00 minimum. Sample Insurance Calculation: If you choose not to pay to insure your shipment, the goods shipped are automatically covered under legal liability standard to the transportation industry. For domestic shipments the coverage is equal to $0.50/LB with a $100.00 minimum provided the cost of the goods is greater than $100.00. 1 Density: A shipment's density is one factor that determines LTL freight rates. 2  Shippers need to know how to calculate a shipment's density so they can properly describe their goods on the bill of lading. 3  The total weight of the shipment is divided by the total cubic feet to determine the density. 1 Weight: LTL freight rates are structured so that the more a shipment weights, the less you pay per hundred pounds. 2  As the weight of the LTL shipment increases and approaches the lowest weight in the next heaviest weight group, it will be rated at the lowest weight category and rate in that weight group. When purchasing supplies for your business, one of the most costly items can be shipping charges. If you calculate your freight percentages, you can see what percent of each purchase you has goes to shipping. Divide the cost of shipping by the total cost of the purchase or sale. In the example, $25 divided by $500 equals 0.05 or 5% freight percentage. If you have questions about how to use the density calculator or otherwise determine the freight class of your shipment, a Freightquote Account Representative can help. Simply call 800-323-5441 for assistance. Use density to calculate freight class. Freightquote has developed a density calculator you can use as a guide to determine a shipment's freight class. Density is one factor used to calculate freight class. It's based on the shipment's dimensions and weight. A shipment with a lower density typically has a higher freight classification. Try our freight density calculator to see for yourself Step 3. Divide the shipping cost by the average inventory figure. Continuing the same example, $30,000 / $1,200,000 = 0.025 x 100 = 2.5 percent. This figure represents the shipping costs as a percentage of inventory. Step 1. Determine the shipping cost for a specified period of time. For example, assume that a company spent $30,000 in shipping during the year. Step 2. Determine the average inventory for the same period of time. If you do not know the average inventory figure, you can add the beginning inventory to the ending inventory figure and divide this sum by 2. For example, assume the beginning inventory was $1million and the ending inventory was $1,500,000. ($1,000,000 + $1,500,000) / 2 = $1,250,000 LTL freight rates can be very confusing. Unlike truckload which has rates usually based on a per-mile rate or a price per-hundred weight plus a fuel charge, many factors regulate LTL rates which will most definitely impact the cost of a shipment. 1 Weight: LTL freight rates are structured so that the more a shipment weights, the less you pay per hundred pounds. 2  As the weight of the LTL shipment increases and approaches the lowest weight in the next heaviest weight group, it will be rated at the lowest weight category and rate in that weight group. Determine the total cost of the purchase or sale. For example, assume your purchase or sale costs $500. Determine the cost for shipping. In the example, assume the cost of shipping was $25 of the $500. Divide the cost of shipping by the total cost of the purchase or sale. In the example, $25 divided by $500 equals 0.05 or 5% freight percentage.
http://my.yrc.com/national/html/densityCalculation.shtml http://www.priorityworldwide.com/resources/cargo_insurance_guidelines.aspx http://cerasis.com/2013/11/19/ltl-freight-rates/ http://www.ehow.com/how_8117063_figure-freight-percentage.html http://www.freightquote.com/howtoship/nmfc-freight-density.aspx http://smallbusiness.chron.com/calculate-shipping-costs-percentage-inventory-21319.html http://cerasis.com/2013/11/19/ltl-freight-rates/ http://www.ehow.com/how_8117063_figure-freight-percentage.html
how do you calculate the percentage of freight on a shipment?