The process of determining the billable weight for freight shipments is a critical component of logistics and transportation. This determination is made by comparing the actual gross weight of the shipment with its dimensional weight the space it occupies. The higher of these two values is then used as the basis for freight charges. For example, if a package weighs 50 kilograms but occupies a volume equivalent to 70 kilograms based on its dimensions, the shipper will be billed for 70 kilograms.
This weight calculation system is important because it ensures that carriers are fairly compensated for the space utilized within their transport vehicles, whether aircraft, trucks, or ships. Prior to the wide adoption of dimensional weight calculations, lightweight but bulky items were often undervalued, potentially impacting carrier profitability. It also incentivizes efficient packing and optimization of space within shipments, leading to potentially lower costs for shippers. This concept has evolved over time as shipping methodologies become more advanced.