Pay attention to volumetric weight: it affects costs and revenues

Volumetric weight is a key parameter for any logistics business and for companies that frequently use shipping services.

Volumetric weight has become a parameter for calculating shipping costs for some time now.

Initially it was applied only in the air freight industry, but since the emergence of the e-commerce phenomenon, it has become a general unit of measurement for freight shipping.

In fact, with e-commerce, parcels with limited physical weight but significant packing space have increased.

This means that low-weight goods fill up the carrier, which ends up traveling with loads below its carrying capacity. Hence the need to assign a weight to volume as well.

What is volumetric weight?

How do you calculate the volumetric weight of a package or pallet?

Let’s start at the beginning.

The actual or physical weight of a parcel is the weight measured by the scale and expressed in kilograms.

The volume of a parcel is the measurement of the space it occupies, a measurement that is obtained by multiplying width x length x height.

To calculate volumetric weight, another parameter must also be considered: the volumetric coefficient.

This is the weight/volume ratio used by the courier, a ratio that varies according to the type of transport: air, sea, road.

Currently, the volumetric coefficient applied in Italy for land transport generally ranges between 1 cubic meter = 200 kg and 1 cubic meter = 300 kg.

In air transport, for comparison, the coefficient is expressed as follows: 1 mc = 167 kg, rounded to 170 for convenience of calculation.

Volumetric weight is then derived by multiplying the volume of the parcel, expressed in cubic meters, by the courier’s volumetric coefficient.

Let’s do some calculations

Assume that the weight/volume ratio (volumetric coefficient) is 200 kg/m3 and the package being shipped has a weight of 12 kg and measures 60 x 30 x 50 cm.

The volume of the package expressed in m3 is 0.6 x 0.3 x 0.5 = 0.09 m3.

The volumetric weight will be obtained by multiplying the volume with the weight/volume ratio: 0.09 m3 x 200 kg/m3 = 18 kg.

Please note: the result, 18 kg, will also be the taxable weight.

How is the taxable weight calculated?

The taxable weight is the greater value between actual weight and volume weight.

Going back to the example above, where the actual weight was 12 kg and the volumetric weight was 18, the taxable weight will be 18 kg.

The freight rate will be applied on the taxable weight.

Physical weight, volumetric weight, taxable weight: the importance of accurate and quick measurement

Accurate measurement of physical, volumetric and, as a result of these, taxable weight is a key element for any logistics business and for companies that make recurrent and heavy use of freight forwarders for their business.

From the perspective of freight forwarding companies, quickly and accurately identifying the volumetric weight of packages means not only charging the right rates, without giving rise to customer disputes, but also securing excellent revenues.

Indeed, recent studies show that in 70 percent of cases, when it comes to palletized goods, the volumetric weight is higher than the actual weight, a percentage that rises to 73 percent when measurements involve parcels and boxes.

For companies that, on the other hand, constantly use logistics services, being able to verify the volumetric weight of goods can help them design packaging to reduce their bulk and, consequently, shipping costs.

Which measuring instruments? Browse the Sipi catalog

Since volumetric weight plays such an important role in the transport sector, it becomes essential to make use of instruments that determine it accurately, reliably but also quickly.

This is where Sipi comes in with its weight and volume detection systems: from Palletscan models that, in a matter of seconds, acquire all the measurements of a pallet, calculating its volumetric weight (as well as photographing the condition of the packaging), to Parcelscan for small and medium-sized packages.

Sipi also provides volumetric weight measurement systems for packages with irregular contours or wrapped in film and aluminum.

In all cases, the measurements taken are sent immediately to the customer’s business management system, enabling the rapid and accurate application of rates.

Finally, an element that has always distinguished Sipi’s production, proprietary software is used for these instruments. This allows each instrument to be calibrated to the needs of the individual customer.