Currently more than 300 types of boxes are used; there’s a great variety in box sizes and quality, and that brings along a lot of challenges.
Standard freight pricing is based on weight rather than volume. However very light loads take up much more space than their share of weight load, and would otherwise be unprofitable to ship.
A shipment’s dimensional weight is calculated by dividing its volume (units × length × width × height) by a “dim factor”. The lower the dim factor the greater the dimensional weight.
The greater of actual weight and dimensional weight becomes the shipment’s chargeable weight (aka billable weight). Light loads are charged by dimensional weight, heavier loads are charged by actual weight. The threshold depends on volume and the dim factor used.
There are some standards for calculating dimensional weight, but they are not universal for all modes of transport, carriers, countries, or customers.
What is Chargeable Weight?
The carrying capacity of every aircraft, truck, and ship is ultimately limited by space or weight. If you load a vessel with heavy cargo, you may hit its weight limit before filling all available space. If you load a vessel with light cargo, you may fill all available space before hitting the weight limit.
When calculating the cost of moving your shipment, the carrier will consider both the weight and volume of your cargo, by converting the volume into a “weight equivalent,” also known as volumetric weight (or sometimes dimensional weight). The carrier will then charge per kilogram for whichever is greater: the actual weight (also known as gross weight) or the volumetric weight.
In other words, shipping 1 kilogram of feathers costs more than shipping 1 kilogram of steel, assuming that the cartons of feathers take up more space than the cartons of steel.
This explains why in some cases, especially when shipping by air, you’ll see both actual weight and chargeable weight in your shipment record.
Actual weight is the number you provide when submiting your initial quote request. Your quote is based on this number. Actual weight = gross weight.
Chargeable weight is the number on your invoice; it’s the amount the carrier charge to move your shipment. The chargeable weight is whichever of the following is greater:
- The gross weight (including the product, packaging, pallet, etc.), or
- The volumetric weight
Terminology:
How is volumetric weight calculated?
Volumetric weight calculations vary by mode of transportation and sometimes by trade lane.
How can I better estimate my shipment’s chargeable weight?
The best way is to make sure that the information you’re providing in your initial quote request is accurate as possible. In many cases, When the cargo is picked up, it turns out to be larger than expected. A common reason for this is palletization. Does your supplier palletize your products? This will affect weight and volume. The more you know about how your product is packaged and palletized, the more accurate the quote will be.
If you have a shipment that is light for its size, you may be charged at a higher rate than the actual weight – the dimensional weight. This easy to use dimensional weight and chargeable weight calculator works off any dim factor or volumetric ratio and is suitable for all modes, countries and freight carriers.
It is important to ensure that the shipment has been carefully weighed. A small error may be the difference between the shipment being charged by dimensional weight rather than actual weight.
There are several ways one can save costs by reducing the shipment’s volume weight ratio:
- Don’t over-package lightweight freight beyond the minimum required to protect your shipment.
- Use the smallest carton size possible.
- Minimize wasted space by compressing products that can be compressed.
- Pack lightweight cartons together if possible.
Minimise pallet size and avoid them altogether on small shipments, especially for air freight. Their dimensions will balloon dimensions and therefore chargeable weight.