Dimensional weight

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Dimensional weight, used in shipping and freight, is a billing technique which takes into account the volume of a package.

1 Significance
2 Weight Calculation
- 2.1 Examples
3 Practical application
- 3.1 Commercial Use
4 External links
5 References

[edit] Significance

Shipping costs have historically been calculated on the basis of gross weight in kilograms or pounds. By charging only by weight, lightweight, low density packages become unprofitable for freight carriers due to the amount of space they take up in the truck/aircraft/ship in proportion to their actual weight. The concept of Dimensional Weight has been adopted by the transportation industry worldwide as a uniform means of establishing a minimum charge for the cubic space a package occupies.

[edit] Weight Calculation

Dimensional weight calculates the volumetric weight of packages. Freight carriers then utilize the greater of the actual weight or dimensional weight to calculate shipping charges. In the USA, domestic air shipments are calculated as (Length x Width x Height)/194, with all dimensions in inches. For international freight, dimensional weight is calculated as (Length x Width x Height)/166, again using inches. Similar formulas exist for metric measurements.

[edit] Examples

Using dimensional weight calculations, a freight carrier will charge for lightweight packages as if they had a greater weight. For example, a box of clothing shipped internationally which weighs 10 pounds, and measures 18 x 18 x 18 inches, would be charged as if it weighed 36 pounds: (18 x 18 x 18)/166 = 35.1 pounds.

Mark Kloch created a program in 2003 to calculate dimensional weight and can be viewed here: Dim Weight Calculator

[edit] Practical application

Dimensional weight favors shippers of dense objects and penalizes those who ship lightweight boxes. A box of unpopped corn kernels will likely be charged by gross weight; a box of popcorn will probably be charged by its dimensional weight. This is because the large box of popcorn takes up a lot of space but does not fill up a vehicle's capacity in terms of weight, making it an inefficient use of space.^[1]

Shippers avoid dimensional weight charges by using smaller boxes, by compressing their goods, and by reducing the use of packing materials.

[edit] Commercial Use

Dimensional weight is commonly used for invoicing by air freight forwarders, truck carriers, as well as all commercial airlines worldwide. In 2007, DHL, FedEx, United Parcel Service and USPS adopted the dimensional weight system for ground services.^[2]

In May 2007, the United States Postal Service (USPS) adopted dimensional weight, calling it Shape Based Postage Pricing. This rate system is designed to charge more for lightweight items, and also to recover costs involving manual sorting and handling, since many postal machines are built to handle flats. This system would charge much more for mailing a parcel than a flat envelope. It encourages mailing books and DVDs in flat paperboard or plastic envelopes, rather than padded mailers. ^[3]

Such companies use automated systems called dimensioners for calculating both dimensional and actual weight and invoice their customers accordingly. More and more transport and logistics companies including warehouses and retailers are investing in dimensioning equipment for calculating the dimensional weight of their packages in order to keep in line with their carriers and avoid back charges.^[4]