Load Factor

Tags: Glossary

The ratio of the weight or volume of a shipment to the capacity of the transportation equipment.

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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.

What is a Load Factor?

Load factor refers to the percentage of available cargo space that is being utilized on a transportation vessel, such as a ship or a plane. The load factor is calculated by dividing the weight or volume of the cargo by the maximum weight or volume that the vessel can carry. The higher the load factor, the more efficiently the vessel is being utilized. 

In the shipping industry, the load factor is an important metric used by transportation companies to maximize the efficiency of their operations. A high load factor can increase profitability by reducing transportation costs and increasing the number of shipments that can be carried. 

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