Dimensional weight, often referred to as volume weight, is a pricing technique used in the freight industry, including road transportation, that considers the space a package occupies in relation to its actual weight. It is determined by multiplying the length, width, and height of a package and dividing by a dimensional factor (also known as a divisor or density factor). For example, a package measuring 60cm x 40cm x 50cm, using a dimensional factor of 5000, would have a dimensional weight of (60 x 40 x 50) / 5000 = 24 kg. If the actual weight is less than this figure, the carrier will typically charge based on the dimensional weight.
This method is crucial for freight companies because it ensures fair compensation for the resources required to transport goods, especially bulky but lightweight items. Historically, freight charges were solely based on actual weight. However, this system did not adequately account for the space taken up by low-density shipments, leading to inefficiencies. By incorporating volume considerations, carriers can optimize space utilization within their vehicles, maximizing revenue and improving overall profitability. Furthermore, accurate cost calculation enables businesses to better estimate shipping expenses and manage their budgets effectively.
