How Do You Calculate CWT in Freight?
CWT in freight is calculated by dividing the total weight of a shipment by 100, since CWT means “cents per hundred pounds.” To calculate freight charges, multiply the applicable rate per unit of weight by the weight of the shipment.
If a 400-pound consignment is priced at $25 CWT, freight charges are (400/100) x 25, or $100. Usually, there is a minimum charge for light consignments. For a full truckload shipment, a freight carrier typically charges based on distance, which is typically cheaper than per-pound pricing. Any applicable discounts or additional charges are calculated after the determination of freight charges.