Volumetric weight or dimensional weight is a method of pricing used by freight carriers based upon the space the package occupies rather than its actual weight. This method is applied especially in air and courier shipping, where space is a premium.
Learning the principles of dimensional weight allows businesses to save themselves from undue, unexpected charges and make decisions about shipping methods and package optimization.
In this article, we will discuss ways to compute volumetric weight used by the main carriers, the industry considerations, and the best practice of shipping calculation.
Volumetric Weight Formula
In freight calculation, the calculation for volumetric weight enables carriers to calculate shipping costs based on how much space a package occupies instead of its actual weight. It is important for lightweight bulky items that could take up a significant space in the transportation vehicles.
So what is the formula for volume to weight? Due to different space constraints, each shipping method has its own volumetric weight formula. In general, the volumetric weight calculation formulas include:
Volume to Weight
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Air Freight: (Length × Width × Height in cm) / 6000 or (Length × Width × Height in m) * 167
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Express Freight: (Length × Width × Height in cm) / 5000 or (Length × Width × Height in m) * 200
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Sea Freight: (Length × Width × Height in cm) / 1000 or (Length × Width × Height in m) * 1000
Note: The unit of weight is kg.
Since sea freight is the least weight-constrained, cost is primarily a function of volume in cubic meters. (Related Reading: How Sea Freight Is Calculated?)
These formulas help businesses to more accurately estimate shipping costs and choose good packaging and the most economical shipping method to best suit their needs.
Dimensional Weight vs. Actual Weight
For air freight or express freight, freight charges are based on the chargeable weight. Carriers use two different measures to determine the chargeable weight: one is dimensional weight (DIM weight, cubed weight, or volumetric weight), and the other is actual weight.
Actual weight is the real weight of a package measured in kg or lbs. It is also known as gross weight, and this includes the packaging and the pallets in the shipment.
On the other hand, dimensional weight is based on the volume occupied by the package, and it represents the space occupied by the package in a transit vehicle.
In both cases, carriers compare the two weights and charge based on the higher one. This means bulky, lightweight items take up extra cargo space and cost more to ship accordingly.
Calculation of Chargeable Weight for Air Freight
After understanding the basic notions, let’s look at an example of calculating chargeable weight for air freight.
Aircraft cargo space constraints make airlines impose strict weight and volume limitations on air freight. Carriers consider volume in order to ensure fair pricing and efficient cargo loading. The formula that’s generally used here is: (Length × Width × Height in cm) / 6000, as we mentioned above.
Suppose there is an electronic device in a protective box measuring 80 cm × 40 cm × 60 cm. Here, the actual weight is 12 kg. So, to get the dimensional weight, the calculation would be as follows: (80 × 40 × 60) / 6000 = 32 kg. Since 32 kg, which is the volumetric weight, exceeds 12 kg, which is the actual weight, the airline charges for 32 kg.
Hence, in many cases, optimizing packaging for businesses shipping by air is necessary as you can lower shipping costs by eliminating as much excess space as possible.
For more examples, visit Ways to Calculate Chargeable Weight for Air Freight.
How do Couriers Calculate Shipping Weight?
Each express carrier (DHL, FedEx, UPS) has its own rules regarding how to determine which weight (actual weight and volumetric weight) to charge and usually finds the higher value so as to ensure that the fare charged is fair to space utilization.
The process for weight calculation is as follows:
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The package is weighed to find out its actual weight.
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The size is taken into account (thickness, height, length).
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The standard divisor of the shipping method is used to calculate the volumetric weight, depending on each courier’s rules.
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Carriers use either the volumetric or actual weight for pricing, choosing whichever is greater.
For example, take a large box measuring 100 cm × 60 cm × 50 cm with an actual weight of 20 kg. In this case, the dimensional weight = (100 × 60 × 50) / 5000 = 60 kg. Since 60 kg is greater than 20 kg, the carrier charges for 60 kg.
Volumetric Weight Optimization
Now that you know how to work out volumetric weight, can you reduce it? The use of right-sized boxes eliminates the blank space and minimizes any potential volumetric charges. Studies indicate that 60% of packages contain 25% or more empty space, and roughly 40% of the space in shipping containers is wasted because of oversized packaging.
Reducing volumetric weight to cut down on shipping expenses can be a source of significant savings. Some of the key strategies include the following:
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Use Compression Techniques: Shipping products in vacuum-sealed products such as clothing, bedding, or soft goods reduces their size.
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Use Custom-Fit Packaging: Design packaging that fits the product snugly and avoid one-size-fits-all boxes that leave empty space.
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Choose Lightweight Materials: Heavy cardboard and excess padding are replaced with lightweight but protective material.
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Flat-Pack When Possible: Ship items disassembled (like sending modular parts) to reduce size.
Suggestions to Cut Shipping Expenses
Shipping charges calculated based on volume can become difficult to handle for many businesses. However, they can be avoided using two methods:
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Consolidate Shipments: Try to use Foresmart’s consolidation services. By combining multiple orders into fewer, larger shipments, you may reduce the impact of volumetric weight, gaining more profit margin. Businesses can save up to 20% by consolidating shipments per truckload.
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Leverage Carrier Discounts: Businesses can negotiate better courier contracts — like lower volumetric weight charges, discounts for high shipping volumes, or custom pricing based on their needs.
Conclusion
For businesses dealing with freight cost management, it is critical to know how to calculate volumetric weight. Accurate calculation allows companies to make sensible decisions on which shipping method, shipping package, and carrier to use.
By optimizing packaging, consolidating shipments, and negotiating better rates with the carriers, businesses can cut shipping costs. If these best practices are applied by companies, it would help them to improve their shipping strategy and, in the long run, support their profitability too.
Frequently Asked Questions (FAQs)
What if my package’s dimensional weight is more than its actual weight?
If the dimensional weight is higher, the shipping cost is based on that instead of the actual weight. This helps shipping companies charge fairly because large but light packages take up a lot of space.
Do all shipping companies use the same formula for volumetric weight?
No, different shipping companies use different formulas. Even different courier companies use different factors when calculating volumetric weight. It’s always good to check with your shipping company.
How can I lower my shipping costs if the volumetric weight is high?
To pay less, use the right-sized boxes and avoid empty space. Vacuum-sealing soft items and using lighter packing materials can also help. Another way to save money is to send multiple packages together in one shipment and talk to the shipping company about possible discounts.
