Okay, let’s thoroughly explain how logistics providers choose between actual weight and volumetric weight to determine the billable weight used to calculate shipping charges.
The core principle of this process is simple, but the logic and nuances behind it are crucial.
- The Golden Rule: Go for the Higher, Not the Lower
The principle used by logistics providers to determine billable weight is extremely clear and can be summarized in one sentence:
Compare the actual weight and volumetric weight of the shipment and choose the higher value as the billable weight.
This principle is often referred to as the “higher, not the lower” or “higher” principle.
Billable Weight = Max(Actual Weight, Volumetric Weight)
II. Decision-Making Process: A Clear Two-Choice Process
The logistics provider’s decision-making process follows a very standardized process, as shown in the following diagram:
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To help you more intuitively understand this “two-choice” process, let’s look at a simple example:
Example:
Cargo A: A box of books
Actual Weight: 30 kg
Volumetric Weight: 15 kg
Billable Weight = Max(30, 15) = 30 kg
Reasoning: This is heavy cargo, consuming more load resources, so it is charged based on actual weight.
Cargo B: A box of down jackets
Actual Weight: 10 kg
Volumetric Weight: 48 kg
Billable Weight = Max(10, 48) = 48 kg
Reasoning: This is light cargo, occupying a significant amount of space resources, so it is charged based on volumetric weight.
III. Why “Higher, Not Lower” is a Must?
This seemingly simple rule is the cornerstone of business fairness and operational sustainability.
Cost Coverage: The costs of transporting a shipment (fuel, labor, vehicle depreciation, tolls, storage space, etc.) for a logistics company are primarily determined by the “weight” and “space” consumed by the shipment.
Heavy shipments primarily incur “weight” costs.
Lightweight shipments primarily incur “space” costs.
“Large-weight pricing” ensures that regardless of the characteristics of the shipment, as long as it consumes a greater proportion of a scarce resource, the corresponding fee is paid, thus fully covering the logistics company’s operating costs.
Fairness: It prevents the unfairness caused by “cross-subsidization.” If charging only by weight, customers shipping heavy shipments effectively subsidize those shipping light shipments, as their freight costs share the same space costs. Large-weight pricing ensures that each customer pays for the core resource they consume.
Incentive for Efficient Packing: This rule encourages shippers to optimize packaging and reduce unnecessary bulk. Every reduction in packaging size can lower the dimensional weight, directly reducing freight costs. This improves overall logistics efficiency.
IV. Important Details and Exceptions
While “larger weight” is the rule of thumb, there are some practical details to consider:
Weight Unit: Ensure both weight units are consistent (usually kilograms/kg). If the actual weight is in kilograms, the dimensional weight must also be in kilograms.
Rounding Up: The billing weight typically has a minimum starting point (such as 0.5kg or 1kg) and a rounding up rule.
For example: If the calculated billing weight is 15.2kg and the company policy is to round up to 0.5kg, the billing will be 15.5kg; if the policy is to round up to 1kg, the billing will be 16kg. Be sure to confirm the logistics provider’s rounding up rule in advance, as it can have a significant impact on light and small shipments.
Zonal Pricing: The final freight rate depends not only on the billing weight but also on the destination. Logistics providers have a zoning rate table. The chargeable weight must be multiplied by the corresponding destination rate (yuan/kg) to arrive at the total price.
Minimum Charge: Even if the chargeable weight is very low, there may be a minimum shipping fee (e.g., “minimum 50 yuan per shipment”). If the calculated freight rate based on the chargeable weight is lower than this amount, the minimum charge will be applied.
Specialty Cargo: For high-value, fragile goods that require special handling (such as pianos and artwork), surcharges may apply. These charges are added to the base freight rate calculated based on the chargeable weight.
Summary
The logistics provider’s “two-choice” process is not arbitrary or subjective; it is a highly standardized business rule based on cost accounting:
The rule itself is extremely simple: always take the maximum value.
The core purpose is very clear: to ensure that the transportation resources consumed (whether weight or space) are fully charged.
Tip for shippers:
Before shipping, calculate the volumetric weight and actual weight yourself to ensure you have a clear understanding.
Actively optimizing packaging, minimizing volume while protecting the product, is the most direct and effective way to save on shipping costs.
Understand the conversion factors of different logistics companies (e.g., air freight vs. land freight) (6,000 vs. 12,000, etc.) and choose the carrier that best suits your shipment.