The space that a box may take on an aircraft may cost more than the physical weight of the box therefore the concept of volumetric weight is important in air freight. For every shipment volumetric weight is compared to the gross weight, and the greater of the two is used to determine the shipment cost, and the chargeable weight. IATA standard volumetric weight is based on 6,000 cubic centimeters per one physical kilogram and is calculated as follows:
Length (cm) x width (cm) x height (cm) / 6,000 = volume kilos
Example:
10 pallets, each 120kgs and 120cm x 100cm x 120cm
10 pallets x 120cm x 100cm x 120cm / 6,000 = 2,400 volume kilos
10 pallets x 120kgs = 1,200 physical kilos
The chargeable weight of the 10 pallets is expressed as 2,400 chargeable kilos as the volumetric weight is higher than the gross weight of the shipment.
Definitions:
FCL – Full Container Load.
LCL – Less-Than-Container-Load.
Break-Bulk – When cargo is too large to fit into any type of ocean container.
The cost of the “space” your cargo will utilize inside a consolidated ocean container or loose on a breakbulk ocean vessel compared to cost associated with the physical weight of your cargo is used in calculating ocean freight cost.
Most LCL freight cost is based on the higher of 1,000 kilos or 1 cubic meter and referred to as weight or measure (W/M) metric.
Example:
10 pallets, each 120kgs and 120cm x 100cm x 120cm
10 pallets x 120cm x 100cm x 120cm / 1,000,000 cubic centimeters = 14.4 cubic meters
The physical weight of this shipment is 10 pallets x 120 kilos = 1,200 physical kilos. For the volume of this cargo not to exceed the physical weight, the physical weight would need to be at least 14,400 kilos. Since this is not the case, the ocean freight would be calculated based on the volume which is 14.4 cubic meters.