How do freight forwarders calculate a quote?

A forwarder reads the request (lane, cargo, Incoterm, delivery address), takes the buy rate for the main freight leg, adds its margin, then adds the origin and destination charges the Incoterm puts on the customer, plus delivery and clearance if asked.

The cargo decides the unit: containers for FCL, revenue tonnes (the greater of cbm and tonnes) for LCL, and chargeable weight for air. Each charge should be its own line with its currency, then a total, validity and exclusions.

Most time goes on finding the right rates and re-typing the same lines. That part can be automated from your own rate sheet, so the reply goes out in minutes.

More: How to calculate an LCL quote, Freight calculator.

The calculation, line by line

1. Work out the chargeable basis: containers for FCL, W/M for LCL, chargeable weight for air.
2. Freight: rate × basis, plus surcharges, in the carrier's currency.
3. Origin and destination charges: from your local charge tables, per container, per W/M or per shipment.
4. Clearance and delivery: clearance fee, then delivery by zone or postcode.
5. Margin: markup or fixed amount by your rules, with a minimum per shipment.
6. Totals: by currency, with tax shown separately where it applies.

Every step is rule-based once the rate sheet is in order, which is why it can be automated. Try the freight calculator for the basis.