The conversion factors can vary, primarily within road transport.
The variation in the conversion factor is apparently because the average weight in groupage normally lies quite low ( 8000-12000 kilos per full load), and it is therefore easier to calculate into the price.
It is typically the larger companies, who covers all road transport within Europe, or other parts of the world, who make use of an alternative conversion factor. This is due to these companies use of internal settlement forms.
Example
By border crossing transport within Europe, most conveyors apply 333 kilos per cubicmetre as conversion factor. The same conversion factor can for some companies be as low as 150 kilo, which is more than half.
The difference in the conversion factor does not make much of a difference at high density, but most transport purchasing companies have a weight/volume ratio that lies closer to 150 kilos than to the 333 kilos. Therefore it is more attractive for you to obtain the low conversion factor as it rarely comes into use.
Hereby the uncertainty in your calculation base by freight calculation will be minimal.
You need to be aware
When choosing your forwarding transport provider you should include the conversion factor as a part of the overall benchmarking.
This leads to some challenges as the basis prices at a lower conversion factor generally are higher, than the prices you get from forwarding transport providers using a traditional conversion factor.
Therefore you should process the data for benchmarking one extra time, but then the end result is however often lower than expected.
Let us handle the benchmarking of the transport providers, so you obtain the cheapest solution.
In case you are interested, please contact Rudy Kjeldsen on phone no. +45 51 19 97 67.
We are looking forward to receive your call.
Follow us on LinkedIn
