| SKU | Qty | CBM | Weight kg | Merchandise value |
|---|---|---|---|---|
Allocated freight
| SKU | Share | Allocated freight | Freight / piece |
|---|
Why allocate freight cost by SKU?
A single freight invoice can hide very different logistics costs across the products inside the shipment. Allocating that invoice creates an estimated freight cost per SKU and per piece, which can improve margin analysis, pricing decisions and comparisons between suppliers or packaging formats.
There is no single allocation basis that is automatically correct for every business. ShipMeasure therefore shows several transparent methods rather than pretending there is one accounting rule for all circumstances.
Choosing an allocation method
CBM / volume
Useful when freight cost is mainly driven by the space each product consumes. Bulky light products receive a larger share.
Actual weight
Useful when mass is the main commercial driver, especially for dense cargo or weight-based transport.
Piece quantity
Simple and easy to explain when units are broadly similar in size and logistics burden.
Merchandise value
Allocates more freight to higher-value goods. This can suit an internal costing policy but does not necessarily reflect physical freight consumption.
50/50 volume + weight
Balances normalized volume and weight shares when neither measure alone represents the shipment well.
Worked example: why the method changes unit economics
Suppose a £4,600 freight invoice covers two products. SKU A takes 70% of shipment volume but only 30% of shipment weight; SKU B does the opposite. A volume allocation gives SKU A £3,220 of freight, while a weight allocation gives it only £1,380. Neither is mathematically “wrong”—they answer different management questions.
The important thing is to choose a defensible policy, apply it consistently and keep taxes, duties, insurance, brokerage or other landed-cost items separate when they follow a different allocation basis.
Freight allocation is not the same as a complete landed cost
This calculator allocates the freight total you enter. A full landed-cost model may also need product cost, duty, import taxes, customs brokerage, insurance, port or terminal charges, storage and inland delivery. Recoverable taxes may need separate treatment from true economic cost. ShipMeasure deliberately leaves those accounting and tax decisions to your own policy or adviser.
Use the connected workspace for real shipments
The standalone tool is useful for quick comparisons. The Shipment Workspace is better for a mixed cargo file because it already knows each SKU's quantity, CBM, weight and optional merchandise value. You can switch the allocation method without re-entering the shipment, then export the underlying cargo data to CSV.
Continue planning the shipment
Shipment Workspace
Enter mixed cargo once and carry the same data through volume, chargeable weight, pallets, containers and freight costing.
Methodology & sources
See the formulas, planning assumptions, source links and review dates behind ShipMeasure.
Packaging efficiency
Find the carton-volume threshold where dimensional weight stops exceeding actual weight.