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Hundredweight (CWT): Definition, Uses, And Examples

Last updated 10/17/2023 by

Dan Agbo

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Summary:
A hundredweight (CWT) is a standard unit of weight used in commodities trading and shipping. In North America, it equals 100 pounds, while in the UK, it’s 112 pounds. This measurement simplifies trading and shipping for various products, from steel to cattle. Learn how CWT has evolved, its historical significance, and its role in modern commerce.

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 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 1835 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.
In the United States and Canada, 1 hundredweight count (CWT) is equal to 100 lbs., or 45.4 kilograms.
In the Great Britain, 1 hundredweight count (CWT) is equal to 112 lbs., or 50.8 kilograms.

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.
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.
Shipping by hundredweight is the preferred option for many businesses that frequently ship small packages that add up to less than a full truckload.

Special considerations

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 relating 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.

The bottom line

In conclusion, understanding the concept of hundredweight (CWT) is essential for anyone involved in commodities trading, shipping, or related industries. This standard unit of weight, although having distinct values in North America and the United Kingdom, has played a crucial role in simplifying trade and shipping operations over the years.
As we’ve explored, the historical significance of the hundredweight dates back centuries, and it has adapted to the changing needs of global commerce. While its use has declined in favor of the metric system and other measurement units, it remains relevant in specific sectors, particularly in agriculture.
Whether you’re dealing with steel, cattle, oil, seeds, grains, or other commodities, the hundredweight may still be a part of your trade discussions. It’s also important to understand its role in shipping, where it offers a practical option for handling packages that don’t fill an entire truckload.
While the hundredweight may not be as prominent as it once was, it’s a testament to the enduring legacy of measurement systems and their impact on international trade. As you navigate the world of commodities and shipping, the knowledge of hundredweight will continue to be a valuable tool, helping you make informed decisions in modern commerce.
Weigh the Risks and Benefits
Here is a list of the benefits and the drawbacks to consider.
Pros
  • Simplifies trading large quantities of commodities
  • Practical for handling smaller packages in shipping
  • Historical significance in international trade
Cons
  • Declining use due to the metric system
  • Potential confusion between American and British definitions
  • Limited relevance in some modern sectors

Frequently asked questions

What is the historical significance of CWT?

The hundredweight (CWT) has a rich history dating back centuries and has played a crucial role in simplifying international trade.

How does CWT differ between North America and the UK?

In North America, a hundredweight equals 100 pounds, while in the UK, it’s 112 pounds. These values are sometimes referred to as “short” and “long” hundredweights.

Is CWT still widely used today?

While its use has declined, CWT remains relevant in specific sectors, especially in agriculture and for trading certain commodities.

Are there alternatives to CWT in modern trade?

Yes, many industries have transitioned to using the metric system and other measurement units, reducing the reliance on CWT.

How is CWT used in shipping?

CWT offers a practical option for shipping companies to handle packages that do not fill an entire truckload efficiently.

Key takeaways

  • The hundredweight (CWT) simplifies trading large quantities of commodities.
  • It has distinct values in North America and the UK, leading to variations in its usage.
  • CWT has a significant historical role in international trade.
  • Its use is declining, mainly due to the metric system and changing industry preferences.
  • CWT remains relevant in specific sectors, such as agriculture and certain commodities.

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