# How to calculate the Premium Freight charges

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#### ngkjrs

Can someone guide me on how to calculate the premium freight charges for imported material in India?

Should it be calculated on volume basis or value basis?

regards,
Gopalakrishnan

#### Jim Wynne

Can someone guide me on how to calculate the premium freight charges for imported material in India?

Should it be calculated on volume basis or value basis?

regards,
Gopalakrishnan

Why are you interested in tracking premium freight? Therein lies the answer to your question. If the impetus is to satisfy 7.4.3.2 and 8.2.1.1 of IS/TS16949:2009, tracking the number of times that non-contracted premium freight charges are incurred will satisfy the requirements. If the desire is to know how much money is lost due to premium freight charges, you would obviously want to track those charges. If you track the charges, you are also tracking the number of incidents.

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#### ngkjrs

Thank you Jim, however, the intention of the question is not to track the number of incidents or the so called losses. I just wanted to know whether this is done on value basis or volume basis or a combination of both.
regards,
Gopalakrishnan

#### Jim Wynne

Thank you Jim, however, the intention of the question is not to track the number of incidents or the so called losses. I just wanted to know whether this is done on value basis or volume basis or a combination of both.
regards,
Gopalakrishnan

What you use as a metric depends on why you want to do the tracking.

#### somashekar

Thank you Jim, however, the intention of the question is not to track the number of incidents or the so called losses. I just wanted to know whether this is done on value basis or volume basis or a combination of both.
regards,
Gopalakrishnan
Hi Gopal.
Premium freight charges depends upon several factors.
You can ask your carrier / forwarder if they operate such service and depending upon the location and size of consignment they could work out for you.
There are situations when your own employee hand carries in the next available flight / drives his car to the customer depending upon the size / weight of the consignment.
There is no one rule or any such ready calculator ...