Shipping costs play an essential role in a successful international business. Freight is often determined by weight.
In the actual freight calculation, you will often hear a lot of terms about weight, such as gross weight, net weight, volume weight, etc.
Many newcomers to international trade are easily confused by these terms and do not know which weight to use to estimate freight costs. Sometimes wrong estimates can lead you to make wrong judgments. Such mistakes are often fatal to a successful business.
Therefore, I feel it is necessary to put these different weight together to make a statement so that you can understand the meaning of each weight and use the correct weight to help your business in international shipping.
Realizing the Importance of Weights in Logistics
The importance of weight in logistics is reflected in the price and weight restrictions imposed by carriers.
Different weight terms correspond to different values. In traditional shipping, there may be a difference of 3 tons between the gross and net weights of a container.
If you are not clear about the terms of these weights then you may have to pay the freight for the additional 3 tons.
There is also a weight limit. Because of the use of transport vehicles have a maximum tolerance range. You need to provide accurate weight data to your carrier to make sure the vehicle you’re using isn’t overloaded.
If the importer incorrectly uses the net weight as the declared weight, it will cause the vessel to be overweight. The wrong declared weight was with a difference of 20 tons only, but the sinking caused millions of dollars loss.
In different cases, we need to use different weight terms. This requires us to be clear about what each weight describes.
What Does Gross Weight Mean?
Gross weight simply means the total weight of a load. In shipping, gross weight includes the weight of the actual product being transported and the package used in wrapping it.
Gross weight is the most commonly used weight in transportation and the easiest to obtain.
When you receive a shipment, you put all the items on the scale and the weight you get is the gross weight of the shipment.
Calculation method of Gross Weight:
Gross weight = Weighed weight of product and package
Let’s say you want to import some shoes from China. Each pair of shoes is packed in boxes. When you put the boxes on the scale with the shoes, you can easily figure out the gross weight of a pair of shoes, say 1.3kg.
Of course, you don’t buy in pairs, you buy in batches. You bought 2,000 pairs of shoes. The shoes were packed in 20 large cartons, each containing 100 pairs.
When you put a carton with 100 pairs of shoes on the scale, you can get the gross weight of a carton, say 132kg.
What Does Net Weight Mean?
Net weight is also easy to understand, it is the weight of the product itself, not including any packaging. The packaging here mainly refers to the bag or box that is wrapped outside the product for protection or brand marketing.
Net weight also excludes pallets, shelves, protective equipment (such as wood used to hold the goods), and the weight of the container.
Calculation method of Net Weight:
Let’s say the same batch of shoes.
When you take the shoes out of the box and weigh the empty box, you can get the weight of the empty shoebox, say 0.3kg. So the gross weight of a pair of shoes is 1kg (Calculation Formula: 1.0=1.3-0.3).
In the same way, you can weigh a large empty carton, say 2kg. So the net weight of a large carton with 100 pairs of shoes is 132kg (Calculation Formula: 130=132-2).
What Does Volume Weight Mean?
In shipping, not all weight is necessarily created equal. What you consider in your mind to be soft and light could conceivably take up a lot of space in a shipment. That might hinder carriers from shipping it with other products at the same time.
To put it simply: It costs more to move a truck full of down blankets than one filled with headphones. The blankets take up more space, they cost less, and it would take more shipments for the carriers to make a large enough profit to make it worth it.
That being said, dimensional weight, also known as volume weight, DIM weight, or cubed weight, is a pricing technique used by shipping companies to ensure that they don’t lose money on large, lightweight shipments (like a truck full of blankets). Dimensional weight is calculated with a formula using the volume weight of a package based on the dimensions of the box.
Calculation method of Volume Weight:
Volume weight = Length (cm) * Width (cm) * Height (cm) /shipping factor (in international express delivery, shipping factor is 5,000)
Take the same batch of shoes for example.
Considering that traditional shipping takes a long time, you may need to get a shipment of shoes in advance using the fastest shipping method to start your business. Let’s say you need to ship a carton of shoes (100 pairs) via international express to do this.
That’s when you have to think about volume weight. The volume of a carton of shoes is 100*60*140cm, so its volume weight is 168kg (Calculation Formula: 168=100*60*140/5,000)
What Does Chargeable Weight Mean?
Chargeable weight is calculated by comparing gross weight and volume weight and then selecting the larger weight to participate in the calculation of freight. In this way, shipping carriers can avoid losses.
Calculation method of Chargeable Weight:
Chargeable Weight = gross weight, if gross weight >= volume weight,
Chargeable Weight = volume weight, if gross weight < volume weight,
In the case of 100 pairs of shoes, the gross weight of a carton of shoes is 132kg, and its volume weight has been calculated to be 168kg. It is clear that 168 kg is bigger than 132 kg.
Therefore, when calculating the actual freight, the volume weight of a carton of shoes will be involved.
What Does Tare Weight Mean?
Tare weight is defined in relation to the weight of the container in which it is being weighed. Tare weight, otherwise known as unladen weight, is purely the sole weight of the empty container.
It describes subtracting the total net weight of the product from the gross weight. You can think of it as the weight of containers. This concept is usually more important in traditional shipping.
For a practical application of the difference between tare and gross weight, envision that a person is purchasing steel in bulk, or around 22 tons. Upon receipt of the shipment, the bill of lading (in some cases a manifest) states that the weight grosses at 25 tons. This is because the bill of lading includes the tare weight.
The difference of 3 tons is mainly the weight of the container itself.
When making purchases of steel in such large amounts, the three tons of tare weight would cost the buyer thousands of dollars. This arrangement ultimately benefits the seller as the containers aren’t included in the sale.
Calculation method of Tare Weight:
Tare weight = Gross weight of container – total net weight of product
Frequent Questions to Learn About the Weights in Shipping
1. Does shipping weight have to be exact?
Yes, the net weight has to be exact in the paperwork. You need to use a scale for accurate weight, otherwise, it will affect the gross weight, causing trouble later in the shipment.
2. What is the weight limit for shipping?
The Weight limit usually manifests itself in two ways. One is weight, one is size. You need to talk to your carrier about the specific restrictions before shipping and tell your factory about them to make sure the product is compliant.
3. What happens if your package weighs more than the shipping label?
If your parcel weighs more than what is stated on the shipping label, most courier companies will issue a surcharge for the overweight package or send it back to the pick-up address.
4. How are shipping packages measured?
First, measure the length of the box first. This is the long side of the box on the side of the longest flap.
Next, turn the box 90 degrees and measure the width, which is the side with the shorter flap.
Last, measure the height of the package.
5. Does net weight include liquid?
The label states the net weight, which is the weight of the contents (both solids and liquid) minus the packaging.
6. Why is volumetric weight used?
That being said, volumetric weight—also known as dimensional weight—is a pricing technique used by shipping companies to ensure that they don’t lose money on large, lightweight shipments (like your pillows)
7. What is the dim factor?
DIM Factor (Dimensional Weight Factor)
The DIM Factor is a mathematical value used to calculate the dimensional weight of an object. The DIM Factor represents the volume of a package allowed per unit of weight.
8. Is VGM the same as gross weight?
Verified gross mass (VGM, for short, sometimes referred to as verified gross weight) is the combined weight of an ocean shipment’s cargo, dunnage, and bracing (material used to keep cargo in position in a ship’s hold), plus the tare weight of the container.
9. What is dunnage?
Dunnage is the packing material wrapped around the goods for protection purposes. It can be anything from packing peanuts to bubble wrap.
10. What is bracing?
Bracing means using any materials or techniques used to prevent the load from vertical movement. Without accurate bracing, the load can fall over the blocks.
Summary of Weights in shipping
We hope these explanations of weight will help you better understand each of the different names and what weight to use when.
If you’re still confused by these explanations, feel free to leave them in the comments below. We’ll help you figure it out.
2 thoughts on “How to Calculate Net Weight, Gross Weight, and Other Weights to Make Successful Shipping?”
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