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You all are aware of the Macro Economic situations happening around the globe and its rub off effect on the business in India. Our businesses have grown beyond the boundaries of our country and business houses from other countries have come and established here which is all good for growth of individual businesses as well as for overall growth of our economy. Under such circumstances we cannot but get exposed to situations of Global Economy.
Companies all over the world are working on strategies to tide over the general slow down and spiraling costs to remain competitive. It is at this time the best from within comes out.
Airlines are working on optimizing their costs and enhancing revenues by best utilization of cargo space. As you all are aware any carriage space in any mode of transport will have a ceiling on the weight capacity based on the carriage vehicle and volume capacity based on the carriage volume. It is a challenge to optimize less dense materials by proper packaging techniques. Any carriage space will have a mix of both less dense and more dense materials so that total carriage space is filled for the economic carriage cost.
Effective 1st Nov 2008, Leading express industry operators are adopting a revised calculation for volumetric weight. For the Air Mode the divisor is changed to 5000 instead of 6000. Similarly for the surface mode the divisor is changed to 4750. The same is shown below for your easy reference.
VOLUMETRIC WEIGHT(AIR) = LENGTH (IN CMS) X WIDTH (IN CMS) X HEIGHT (IN CMS) / 5000
VOLUMETRIC WEIGHT(SFC) = LENGTH (IN CMS) X WIDTH (IN CMS) X HEIGHT (IN CMS) / 4750
We will also be adopting the new standards and we request you to formally communicate to all your customers and start charging them on this basis.
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