Accurate freight calculation is essential for both logistics providers and customers to manage shipping costs effectively. Whether you’re shipping by air or sea, understanding the difference between physical weight, volumetric weight, and how it affects pricing can prevent billing surprises. Below is a practical guide to help decode these important logistics concepts.
In air freight, the space a shipment occupies can cost more than its actual weight. That’s why volumetric weight—also known as dimensional weight—is often used to calculate the chargeable weight.
Aircraft space is limited and expensive. Carriers want to ensure they’re compensated for both weight and space. That’s why for every air shipment, volumetric weight is compared with gross (physical) weight, and the greater value is used as the chargeable weight.
Length (cm) × Width (cm) × Height (cm) ÷ 6,000 = Volumetric Weight (kg)
This formula is based on a conversion factor of 6,000 cubic centimeters per 1 kilogram, in line with IATA guidelines.
Shipment details:
Step-by-step calculation:
Result:
Since 2,400 kg (volumetric weight) is higher than 1,200 kg (gross weight), the chargeable weight is 2,400 kg.
In ocean freight and multimodal shipments, pricing models differ, especially for LCL (Less-than-Container Load) freight. Here, the space your cargo takes up—measured in cubic meters—can determine cost more than physical weight.
For LCL shipments, freight is calculated based on whichever is higher:
This is known as the W/M rule, a key freight billing concept for consolidated ocean shipments.
Shipment details:
Step-by-step calculation:
Result:
Since 14.4 CBM > 1.2 tons, the chargeable weight is 14.4 CBM, and pricing is based on this volume.
Freight Mode | Method | Chargeable Weight Based On |
---|---|---|
Air Freight | Volumetric formula (÷ 6,000) | Higher of actual or volumetric weight |
LCL Sea Freight | Volume formula (÷ 1,000,000) | Higher of 1 CBM or 1,000 kg |
FCL Sea Freight | Container size (20ft/40ft) | Flat rate per container |
Break-Bulk | Custom pricing | Based on dimensions and crane handling |
Understanding these freight calculations is not just academic—it impacts:
When paired with an experienced logistics provider, you can determine the most cost-efficient mode and packaging strategy for your shipments.