Shipping Billing Rules: When to Charge by Actual Weight vs. Volumetric Weight?

1. Core Principles of Shipping Billing

Shipping costs are generally calculated based on the higher value between Actual Weight (Gross Weight) and Volumetric Weight, known as the Chargeable Weight. This rule ensures a balance between cargo’s space occupancy and weight load.

1.1 When Actual Weight Applies

• Definition: The physical weight of the cargo, usually measured in kilograms (kg) or tons (t).
• Applicable Scenarios:
  • High-density goods (e.g., metals, machinery, construction materials) where actual weight significantly exceeds volumetric weight.
  • Full Container Load (FCL) shipments, if the cargo does not exceed the maximum weight limit.

1.2 Volumetric Weight Calculation & Applicability

• Formula:Volumetric Weight=Length (cm)×Width (cm)×Height (cm)Shipping Volumetric DivisorVolumetric Weight=Shipping Volumetric DivisorLength (cm)×Width (cm)×Height (cm)​
  • Shipping Volumetric Divisor: Commonly 1 CBM = 1000 kg, though some carriers may use 1 CBM = 500 kg (confirm with the provider).
• Applicable Scenarios:
  • Light but bulky cargo (e.g., foam, furniture, textiles).
  • Less than Container Load (LCL) shipments, where space utilization is a key cost factor.

2. Determining Chargeable Weight in Shipping

1. Step 1: Measure & Calculate
   • Actual Weight: Measured via scales.
   • Volumetric Weight: Calculate using package dimensions (including pallets).
2. Step 2: Compare & Select
   • If Actual Weight ≥ Volumetric Weight → Billed by Actual Weight.
   • If Volumetric Weight > Actual Weight → Billed by Volumetric Weight.
3. Step 3: Additional Fees
   • Oversized/Overweight surcharges (e.g., single side >12m or exceeding container limits).
   • Bunker Adjustment Factor (BAF), port congestion fees, etc.

3. Key Factors & Case Comparisons

3.1 Cargo Type Impact

3.2 Shipping Method Differences

• FCL: Typically charged by container type (e.g., 20GP/40HQ), with extra fees for overweight cargo.
• LCL: Strictly based on chargeable weight (higher of actual or volumetric), quoted per “ton/CBM.”

4. Cost-Saving Strategies

1. Reduce Volumetric Weight
   • Use compact packaging (e.g., vacuum-sealed textiles).
   • Disassemble foldable parts (e.g., furniture).
2. Optimize Shipping Method
   • High-density goods: Prefer LCL. Low-density goods: Consider FCL for cost-sharing.
3. Negotiate & Compare Rates
   • Some carriers adjust divisors (e.g., from 1 CBM = 1000 kg to 800 kg) for long-term clients.

5. FAQs

• Q: Is the volumetric divisor standardized?
  A: No, confirm with the carrier (e.g., chemicals may have special divisors).
• Q: How to avoid billing disputes?
  A: Request photo/video evidence of weighing and measuring from the freight forwarder.