
What Is a Hundredweight (CWT)?
A hundredweight (CWT) is a unit of measurement commonly used in trading various commodities. It serves as a reference point in commodities trading contracts and is a standard option for pricing packages that do not fill an entire truckload. While the use of hundredweight has decreased, it remains relevant in certain sectors and markets where it is used to specify quantities.
The value of a hundredweight varies between American and British standards. In the U.S., a hundredweight equals 100 pounds, whereas in the U.K., it corresponds to 112 pounds. The distinction between these two measurements is often denoted by the terms “short hundredweight” for the American standard and “long hundredweight” for the British standard. The American hundredweight is sometimes referred to as a “cental.”
Understanding Hundredweight (CWT)
The abbreviation “CWT” stands for centum or cental weight, signifying hundredweight. Historically used in Europe during the late Medieval era, the hundredweight facilitated the trade of items such as wax, sugar, and pepper. Officially set at 112 pounds in 1878 by the Weights and Measures Act in the U.K., the American and Canadian standard remained at 100 pounds.
In the U.S. and Canada, the measurement for one hundredweight remains 100 pounds since its establishment.
In the United States and Canada, a hundredweight count (CWT) equals 100 lbs., or 45.4 kilograms. In Great Britain, the same measurement equals 112 lbs., or 50.8 kilograms.
When a Hundredweight Is Not 100 Pounds
In 1824, British merchants were prohibited from associating the term “hundredweight” with a 100-pound unit. This restriction was lifted in 1879, with the condition that it be labeled as a “cental.” The term hundredweight originates from the French avoirdupois weight system, which was adopted in England during the late Medieval era to standardize measurement practices.
This system played a crucial role in simplifying trade of various goods across nations, especially for commodities traded in large volumes. It established that 20 hundredweights equated to one ton, with a short ton weighing 2,000 pounds and a long ton weighing 2,240 pounds.
The abbreviation “CWT” represents centum or cental weight, denoting one hundredweight.
Examples of Hundredweight (CWT)
Hundredweight serves as a standard weight unit for trading large quantities of commodities, particularly for heavy products like steel. It is commonly used for measuring items such as cattle, oil, seeds, grains, paper, and certain chemicals or additives sold in bulk.
Additionally, in the futures markets, prices for livestock and certain food items are quoted per hundredweight, while products like coffee and sugar are priced per pound. The measurement of futures, including livestock and rice, is often conducted in hundredweights. Anvils, for instance, were historically weighed in hundredweights using specific decimal designations.
Cattle by Hundredweight
Livestock, including cattle, are frequently priced and traded in hundredweights within the futures markets. Specialized measurements using hundredweight are utilized to trade various commodities, reflecting the historical significance and continued relevance of this weight unit.
Anvils were commonly measured in hundredweights, using a decimal designation to state the number of hundredweights, quarter-hundredweights, and pounds the anvil weighed. The formula can still be used to indicate anvil weight.
Special Considerations
While the use of hundredweights has diminished with the adoption of the metric system, it remains a valid measurement unit in certain instances. Its applications are prevalent in specific U.S. sectors, particularly within agriculture-related activities, despite the prevalent use of pounds or kilograms for most trading purposes.
Despite declining popularity, hundredweight remains relevant for measuring quantities of commodities and goods being traded or shipped. Its use is particularly evident in the financial and transportation industries for specific applications.
CWT Shipping vs. LTL Shipping
Shipping companies managing smaller loads of goods can select between hundredweight (CWT) or less-than-truckload (LTL) pricing options for transporting their packages. Typically, shipping companies specializing in small load transportation from multiple clients opt for hundredweight pricing.
Major shipping providers like UPS and FedEx offer hundredweight options for shipping packages.
Advantages and Disadvantages
Both hundredweight and LTL shipping methods have their own advantages and drawbacks. LTL shipping involves loading packages onto a pallet and is suitable for heavy or large items heading to the same destination, such as a warehouse. On the other hand, hundredweight shipping requires less handling and is favored by small shippers sending multiple packages to various destinations.
The preferred shipping method depends on factors like the nature, weight, and quantity of the items being shipped, and the distance they are traveling.
Shipping by hundredweight is ideal for businesses shipping small packages that collectively amount to less than a full truckload.
How Do You Calculate CWT in Cattle?
In the U.S., cattle, like all commodities, are weighed in pounds. Dividing the total weight of the cattle by 100 gives the number of hundredweights of cattle.
How Are Freight Prices Calculated With CWT?
Freight prices are typically quoted per cwt. For instance, if the quoted price is $30 per cwt and you have a 500-pound shipment, the total cost would be 30 x 5, equaling $150.
How Many Kilograms Are There in a Hundredweight (CWT)?
One pound is equivalent to 0.453592 kilograms. Therefore, in the U.S. system where a hundredweight is 100 pounds, it would be equal to 45.3592 kilograms. In the British system where a hundredweight is 112 pounds, it would amount to 50.8023 kilograms.
How Do You Calculate Hundredweight (CWT)?
In North America, determining hundredweight is a straightforward process; just divide the weight in pounds by one hundred. For example, an item weighing one ton (2,000 lbs) would be 20 CWT.
The Bottom Line
The hundredweight remains a vital unit of measurement in specific sectors, particularly in the trading and transportation industries. While its usage has diminished due to global adoption of the metric system, it still plays a crucial role in quantifying goods for commerce and financial transactions. The coexistence of different hundredweight standards can lead to confusion in international trade, highlighting the need for standardization.
Although the hundredweight is less prevalent in contemporary trade practices, its significance persists in various applications, emphasizing its enduring importance as a measurement unit.