What is a Hundredweight (CWT)?
A hundredweight (CWT) is a unit of measurement used to define the quantities of certain commodities being bought and sold. It is employed in specific commodities trading contracts and is also a standard option for pricing shipping packages that take up less than an entire truckload. The adoption of the metric system has reduced its general usage, switching to pounds or kilograms instead.
The value of a hundredweight differs in its American and British forms. In the United States, a hundredweight is equivalent to 100 pounds, while in the United Kingdom, it equals 112 pounds. The American hundredweight is known as the “short hundredweight,” and the British hundredweight is termed the “long hundredweight.” The short hundredweight is also occasionally called a “cental.”
Key Takeaways
- A uniform measure: A hundredweight (abbreviated as CWT) is a standard unit of weight or mass, particularly in commodities markets. It may also be used to price smaller shipments of goods.
- Regional variations: In North America, a hundredweight is equal to 100 pounds; in the United Kingdom, it’s 112 pounds, referred to as “short” or “long” hundredweight.
- Historical roots: The hundredweight was introduced to standardize the trading of certain goods between countries.
- Modern shift: The usage of the hundredweight has declined with the rise of the metric system.
- Commodities measured: Products like steel, cattle, oil, seeds, and grains are often measured in hundredweights.
Understanding Hundredweight (CWT)
CWT stands for centum or cental weight, meaning hundredweight. Since the late Medieval era, the hundredweight has served as a European mass measurement. Branded goods, such as wax, sugar, and pepper, were bought and sold using this unit. Since 1340, King Edward III’s decree meant one stone equaled 14 pounds, making one hundredweight equal to 112 pounds.
The law codified this in 1878 through the Weights and Measures Act, establishing a hundredweight as 112 pounds. In the U.S. and Canada, however, a hundredweight has remained 100 pounds.
100 lbs (45.4 kg) / 112 lbs. (50.8 kg)
- American Hundredweight: In the United States and Canada, 1 hundredweight (CWT) equals 100 lbs., or 45.4 kilograms.
- British Hundredweight: In Great Britain, 1 hundredweight (CWT) equals 112 lbs., or 50.8 kilograms.
When a Hundredweight Is Not 100 Pounds
In 1824, it was made illegal for British merchants to refer to 100 pounds as a hundredweight, leading to lawsuits for fraudulent labeling. By 1879, it became legal again under the label “cental.”
The term hundredweight comes from the French avoirdupois weight system, which was later established in England, simplifying international trade by offering standardized measurements.
Essential for trading large quantities, this unit assured parity for commodities traded heavily in large shipments. Accepted standards catalog a short ton at 2,000 pounds and a long ton at 2,240 pounds.
Examples of Hundredweight (CWT)
Primarily, the hundredweight is utilized for trading sizeable quantities of commodities. Steel is one of the exceptionally heavy products often referenced using this unit.
Food items such as cattle, seeds, grains, and oil operate using the hundredweight scale. Additionally, commodities like bulk paper and specific chemicals are measured this way.
Cattle by Hundredweight
In futures markets, prices for cattle and other livestock use the hundredweight, while products like coffee and sugar employ cents per pound.
Livestock and rice futures also employ the hundredweight for measurements and trades. Traditionally, anvils used the hundredweight system, with decimals to declare weights in hundredweights, quarter-hundredweights, and pounds.
Special Considerations
Europe’s gravitated towards the metric system ultimately sidelined the frequent use of the hundredweight. The global acceptance of the metric standard rendered it less common, compounded by the different definitions in different regions.
Though it’s rare, the hundredweight still clings in the U.S. agricultural sector despite the prevailing trend toward pounds and kilograms.
CWT Shipping vs. LTL Shipping
Shipping companies juggling smaller shipments can pick between hundredweight (CWT) or less-than-truckload (LTL) pricing. Firms specializing in many small loads typically opt for hundredweight pricing.
Providers like UPS and FedEx offer these hundredweight shipping rates.
Advantages and Disadvantages
Both shipping options have pros and cons:
-
LTL Shipping: Involves palletization of heavy, large, or irregularly shaped goods. It benefits scenarios where goods share the same destination, like warehouses.
-
Hundredweight Shipping: Entails fewer handling needs, permitting shipment without palletization. Small shippers sending to various destinations benefit more from this option.
The more favourable choice depends on product size, shape, weight, and shipping distance. Hundredweight shipping suits many businesses shipping small packages despite totaling less than a truckload.
How Do You Calculate CWT in Cattle?
In North America, cattle and other commodities weigh in pounds; a hundredweight equals 100 pounds. So, calculate the total cattle weight and then divide by 100 for the hundredweight count.
How Are Freight Prices Calculated With CWT?
Shipping charges are quoted as a per-CWT rate. For instance, a $30 per CWT quote and a 500-pound shipment tally to five hundredweights. Hence, the total shipping cost would be $150 (i.e., 30 x 5).
How Many Kilograms Are There in a Hundredweight (CWT)?
A pound translates to 0.453592 kilograms. Thus, a U.S. hundredweight of 100 pounds amounts to 45.3592 kilograms, while a British hundredweight of 112 pounds translates to 50.8023 kilograms.
How Do You Calculate Hundredweight (CWT)?
In North America, by dividing the weight in pounds by one hundred, you calculate CWT. For instance, 2,000 pounds, or a ton, corresponds to 20 CWT.
The Bottom Line
The hundredweight lives on as a weight measurement standard in certain contexts. Indicative of certain commodity amounts in transactions and some traded commodity futures, it is also a valid freight measure.
The challenge hindering the hundredweight widespread adoption in global trade lies in the dual definitions: 100 pounds in North America and 112 pounds in the United Kingdom.
Related Terms: short hundredweight, long hundredweight, metric system, pounds, kilograms.
References
- Pete Hoffman. “Weights and Measures—U.S. To Metric”. Page 1. Southwest Wisconsin Technical College.
- Edward Nicholson. “Men and Measures; A History of Weights and Measures, Ancient and Modern”, Pages 105-106. London: Smith, Elder & Co., 1912.
- UK Parliament. “Hansard 1803–2005; Weights and Measures Act—Standard Weights; HC Deb 21 June 1880 vol 253 c420”.
- Cavalier Transportation Services Inc. “How to Calculate Freight Charges with CWT Rates”. Page 1.
- Edward Nicholson. “Men and Measures; A History of Weights and Measures, Ancient and Modern”, Pages 108-109. London: Smith, Elder & Co., 1912.
- Britannica. “Avoirdupois Weight”.
- Edward Nicholson. “Men and Measures; A History of Weights and Measures, Ancient and Modern”, Page 108. London: Smith, Elder & Co., 1912.
- Center for Futures Education, Inc. “Reading Price Quotations”.
- Anvil Fire. “English Hundredweight System”.
- UPS. “UPS Hundredweight Service Rates”.
- FedEx. “FedEx Standard List Rates, Effective January 1, 2024”.
- Freight Snap: “LTL vs. Parcel Hundredweight: Which Service Is Right for You”.
