Volume-Based Freight Pricing
Volume-based freight Pricing is a pricing approach in logistics in which freight charges are set based on the amount of cargo rather than weight. This concept is especially beneficial for delivering big but lightweight commodities like furniture, electronics, or plastics, where the space used by the delivery vehicle is more important than the actual weight. Carriers ensure appropriate remuneration for the space their goods occupy by pricing based on volume, allowing for optimal load planning and transportation efficiency.
In this pricing approach, volume is usually measured in cubic meters (CBM) or cubic feet, and freight costs are determined using volume conversion factors. Volume-based pricing helps to avoid situations in which low-weight cargo occupies disproportionate space, thereby affecting profitability if charged merely by weight. It additionally encourages shipping companies to improve their packaging and consolidation procedures, resulting in cost savings and environmental benefits through optimal space utilization. This approach is widely used in air, sea, and road freight services, and it is frequently integrated into logistics management systems such as CargoWise to automate pricing computations and billing accuracy.
