How Shiprocket Freight Bill Is Charged?

Shipping Bills or Freight Bill is the invoice raised by Shiprocket of your sent shipments’ charges. This invoice is raised on every 2nd and 4th weeks of every month with all the details of your shipments, carrier used along with their dates.

Since, Shiprocket works with multiple courier companies at a single time, many merchants often feel difficulty in understanding how exactly the Shiprocket Freight Bill is raised. For better understanding of the same, here is the step by step description on how Shiprocket charges your freight bill.

Volumetric Measurement For Shiprocket Freight Bill

You must be aware that courier company charges you according to the weight of the parcel. You should also know how these companies weigh your parcel. That’s depends upon the volumetric weight. The cost of freight is directly proportional to the volumetric weight of the consignment. So, if the surface mode increases, the volume increases too, and so does the Shiprocket Freight Bill.

To calculate the volumetric weight of the shipment of a package, use the following equation.
Length x width x height (cm) of the packet/ 5000 (a fixed amount of weight)

You are sending a package that weight 8kg, but the dimensions is 40cm x 30cm x 50cm.

40x30x50/5000 = 12Kg

As per the example the chargeable weight will be 12kg (volumetric weight) as the Volumetric weight is higher than the Dead weight (actual weight i.e. 8 kg in this example). To know more about volumetric weight concept, click here.

P.S. In case, you are sending multiple packages, calculate each weight separately and this will be your “total chargeable weight.

Freight Calculation

Before billing the Shiprocket freight rate, you should know how to calculate the freight. Here is the formula for calculating the freight.

Base rate (500gm) X [Total Package Weight + Fuel Surcharges+ Additional charges (COD) charges or the Address correctional charges/ Octroi Charges/ ODA Charge) + Currency charge (@4% in case of Bluedart) +KartRocket Service Charge (10%, 25%, or 35%) + Currency Charge + Service Tax (12.36%)]

There is a security deposit of Rs. 3000 against a shipping limit of 25 kg

Terms Explained:

Additional Charges

Address Correction Charge denotes the Fedex charges in case of an address correction for delivery, post pick up. Rs. 50 is charged extra.

Out Of Delivery Charges (ODA) denotes the charges to deliver the packets to unrecognized pin codes.

Octroi and other Government Taxes are the charges levied by States plus the courier amount for paying this charge.

Currency Charge

It is the rate levied as per the current currency inflation charge of 4% according to Blue Dart.

Base Rate

Base Rate is the rate on which your courier company will charge you the freight bill. For many courier companies, the base rate is calculated for minimum 500 gms. However, carriers like FedEx charge their base rate for minimum 1 kg.

For Example, if the chargeable weight of your shipment is 1.5 kg and the base rate is Rs. 500, then amount will be 1.5 x 500 = Rs. 750.

Fuel Surcharge (FSC)

The Fuel Surcharge rate depend upon the selected courier company. However, these rates keeps on fluctuating according to the fuel price. The charged Fuel Surcharge is seen on your freight bill.

KartRocket Service Charge

One or more additional charges may be applicable according to the shipping rates and terms of KartRocket. A service charge of 10%, 20%, 15% or 35% shall be charged on the total bill as per the plan selected, before the service tax is charged.

Pointers to Keep in Mind for Packages

Entrepreneurs must know their limitations on sending freights to the courier company. Any smallest increase in the weight will result in shelling out more money from your wallet. Now you wouldn’t want to do that, would you?

Ensure that your packaging material is lightweight yet sturdy, so pack the ordered item neatly in a cardboard box followed by a bubble wrap for that extra layer of protection. Secondly, follow the packaging and freight size guidelines of your vendor (shipping company), strictly. A small deviation in size and you must pay a higher fee for shipping the product.

So, if you are running any small-scale industry make an added effort to evaluate the package and the freight calculation formulae before sending the orders.

Got any question? Feel free to share with us on the comment section.

Ashima Kalra

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