CargoWise ERP Glossary - Key Terms & FAQs

Our CargoWise ERP Glossary Terms provide clear, concise definitions of key terms used in CargoWise, helping users navigate the system with confidence. Along with these definitions, we've included in-depth FAQs to clarify complex concepts, ensuring you get the most out of your CargoWise solutions.

Volumetric Weight Calculation

Last updated: August 12, 2025
Logistics CargoWise
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Volumetric Weight Calculation is a logistics and freight forwarding system that calculates shipping rates based on a package’s dimensions rather than its actual physical weight. This calculation takes into account the amount of space a shipment takes up relative to its weight, which is important for transit modes where cargo volume influences cost more than weight, such as air freight and express courier services. Carriers can charge reasonably for big but lightweight cargo by translating volume (length × width × height) to weight equivalent using a standard divisor.

This computation method ensures that shipping prices reflect both the size and weight of cargo, allowing logistics providers to maximize capacity utilization in containers, vehicles, or aircraft. CargoWise and related transportation management systems automatically calculate volumetric weight, allowing freight forwarders to provide accurate freight bids and invoices. Understanding volumetric weight is critical for shippers and carriers to minimize unexpected costs and improve cost transparency, resulting in better freight management and customer satisfaction.

Frequently Asked Questions

What is the Volumetric Weight Calculation?

It is a pricing system in which shipping rates are calculated using the cargo's volume transformed into weight rather than its actual physical weight.

Why do carriers utilize volumetric weight rather than real weight?

Because big yet lightweight shipments take up significant space, carriers charge by volume to better reflect the usage of transportation capacity.

How is the volumetric weight calculated?

The formula multiplies the package's length, breadth, and height, then divides by a typical volumetric divisor specified by the carrier or mode of transportation.

Can CargoWise calculate volumetric weight automatically?

Yes, CargoWise contains tools for calculating volumetric weight, which allows freight forwarders to produce accurate rates and avoid billing problems.

How do volumetric weights affect shipping costs?

It can increase rates for large, lightweight shipments by accounting for the space they take up, providing fair pricing based on cargo volume.