What Is CWT (Hundredweight) and How Do You Calculate It?

A hundredweight (CWT) is a unit of measurement used to define the quantities of certain commodities being bought and sold. It is used in some commodities trading contracts. Pricing by hundredweight also is a standard option for shipping packages that take up less than an entire truckload. Usage of hundredweight more generally has declined in favor of contract specifications in pounds or kilograms.

The value of a hundredweight differs in its American and British usages. In the United States, a hundredweight is a unit of mass equal to 100 pounds. In the United Kingdom, a hundredweight is a unit of mass equal to 112 pounds. The two values are sometimes distinguished by referring to the American hundredweight as a "short hundredweight" and the British hundredweight as a "long hundredweight." The short hundredweight is also sometimes called a "cental."

Understanding Hundredweight (CWT)

The abbreviation "CWT" refers to centum or cental weight, meaning hundredweight. The hundredweight has been used as a measurement of mass in Europe since the late Medieval era. Traders bought and sold goods like wax, sugar, and pepper in hundredweights, although the precise amount that was meant at the time could be 100 pounds or 108 pounds. Since 1340, when King Edward III changed the official definition of one stone to 14 pounds, one hundredweight has equaled eight stones or 112 pounds.

This was set in law in 1878 when the Weights and Measures Act established one hundredweight as 112 pounds. In the U.S. and Canada, one hundredweight, then and now, is 100 pounds.

When a Hundredweight Is Not 100 Pounds

In 1824, it became illegal for British merchants to use the term hundredweight to refer to a unit of 100 pounds, and merchants could be sued for fraudulent activity for doing so. In 1879, it became legal again to use of measurement of 100 pounds in Britain, but only when it was labeled a "cental."

The term hundredweight is derived from the French avoirdupois weight system which was established in England in the late Medieval period. It provided a standard for measurement, simplifying the trading of certain goods among countries.

This was especially helpful when dealing with commodities that were traded in large quantities. It was accepted that 20 hundredweights were one ton. A short ton weighed 2,000 pounds and a long ton weighed 2,240 pounds.

Examples of Hundredweight (CWT)

The hundredweight is most often used as a unit of measure for trading large quantities of commodities. It also is used when referring to products that are exceptionally heavy, such as steel.

Many food items such as cattle, oil, seeds, and grains are measured using the hundredweight, along with products sold in bulk including paper and some chemicals or additives.

Cattle by Hundredweight

In the futures markets, prices for cattle and other livestock are quoted in hundredweights, while prices for foods like coffee and sugar are priced by cents per pound.

Prices of futures, including livestock and rice, may be measured and traded in hundredweights.

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.

Rise of the Metric System

With the increased use of the metric system across Europe, the hundredweight generally fell out of favor. As the metric system created a more universally accepted standard, dealing in hundredweights became less common. The potential for confusion between the British and North American definitions helped make it unpopular for international trade.

Even though it is not as commonly used as it once was, it is still an accepted unit of measurement. The hundredweight is used within certain U.S. sectors, especially those related to agriculture, even though most trade is conducted in pounds or kilograms.

CWT Shipping vs. LTL Shipping

Shipping companies that handle smaller loads of goods can often choose between two pricing options for transporting their packages: hundredweight (CWT) or less-than-truckload (LTL) pricing. Generally, a shipping company that specializes in carrying small loads from many clients relies on hundredweight pricing.

UPS and FedEx, for example, both offer hundredweight options for shipping packages.

Hundredweight pricing is often used by small shippers that need to send packages to several destinations. It's the more affordable way to ship lighter items across short distances. LTL pricing, on the other hand, is often used to ship large, very heavy items that fit on one pallet or more. It's the more affordable way to ship heavier items across a greater distance.

According to FreightSnap, a firm that specializes in supply chain management services, both options have advantages and disadvantages:

• LTL shipping requires that packages be loaded onto a pallet and may include very heavy, large, or oddly shaped goods. This option is often used when all of the goods being shipped are going to the same destination, such as a warehouse.
• Hundredweight shipping requires less handling, as multiple packages can be sent without loading them onto pallets. It is often used by small shippers sending packages to a number of destinations.

The better shipping choice depends on many factors, including the size, shape, and weight of the products being shipped and the distance being covered.

The Bottom Line

The hundredweight survives as a standard unit of measurement in the 21st century, but only in a number of specific uses. It is used to indicate the quantity of some commodities being bought and sold in the marketplace, and of some commodity futures being traded in the financial markets. It also is used to indicate the quantity of goods being shipped by freight.