In the context of ocean shipping, a tool exists to determine the billable weight for cargo. This tool assesses both the actual weight and the volumetric weight of a shipment and selects the greater of the two. For example, if a shipment weighs 500 kilograms but occupies a volume equivalent to 600 kilograms, the carrier will base its charges on the 600-kilogram figure.
Employing this calculation is vital for accurate budgeting and cost management in international trade. Historically, shipping costs were primarily based on weight. However, the rise of lighter-weight, bulky goods necessitated a system that accounts for space occupied within a vessel. This method ensures fair compensation to carriers for the resources utilized in transporting various types of freight.