Whether you’re a budding e-commerce startup or an established exporter, understanding how shipping costs are calculated is crucial to optimizing your costs and achieving healthy overheads.
While you might think only the actual weight of your package matters, there’s a second metric to keep in mind: volumetric weight.
So, what is volumetric weight, also known as dimensional weight, in the shipping industry? Simply put, it's a method used to determine the shipping cost of a package based on its dimensions. It reflects the density of a package or how much space it takes up relative to its actual weight1. This is important because aircraft and trucks have limited space, and even lightweight items can take up a lot of room if packed into a large box or container.
Read on to find out how volumetric weight is calculated and how to optimize it for your shipping purposes and manage shipping costs effectively.
How to calculate volumetric weight
There are simple calculations that can help you understand what volumetric weight is and how it is calculated. DHL Express, like many other international delivery carriers, uses a standard formula to determine this weight. Here's a step-by-step guide:
- Measure the package: Measure the length, width, and height of your package in centimeters (cm). Ensure you're measuring the outermost dimensions, including any bulges or protrusions.
- Apply the formula: The formula used for calculating volumetric weight is: (Length cm × Width cm × Height cm) ÷ Volumetric Divisor
- Determine the volumetric divisor: The volumetric divisor, sometimes called the dim factor, is a specific number used by the carrier to calculate the volumetric weight. This divisor can vary depending on the mode of transport (air, sea, road) and the carrier. DHL Express typically uses a standard divisor of 5000 when calculating volumetric weight. However, It's crucial to confirm the current divisor with your shipping company directly, as it can be subject to change.
- Calculate: Perform the calculation using the measurements and the appropriate divisor. The result is the volumetric weight in kilograms (kg) or pounds (lbs).
For example, let's say you're shipping a box from Singapore with the following dimensions: 50 cm (Length) x 40 cm (Width) x 30 cm (Height). Using the divisor of 5000, you get (50 cm × 40 cm × 30 cm) ÷ 5000 = 12 kg.
Even if the item in the box is only 5 kg in actual weight, the volumetric weight is 12 kg so the package will be charged for a 12 kg weight.
Volumetric weight vs. actual weight – which one applies?
A key point to understand is that international delivery carriers like DHL Express generally charge based on the higher figure between the volumetric weight and actual weight. This is a standard practice in the industry.
Here's a comparison to illustrate the difference:
Measurement | Item 1 | Item 2 |
Actual weight | 5 kg | 15 kg |
Volumetric weight | 12 kg | 8 kg |
Billable weight | 12 kg (volumetric) | 15 kg (actual) |
As you can see, for Item 1, the shipping costs will be calculated based on the volumetric weight (12 kg) because it's higher than the actual weight. Whereas in Item 2, the actual weight (15 kg) is higher, so that's what will be used.
This distinction tends to affect businesses involved in e-commerce or those shipping lightweight but bulky items, such as textiles, packaging materials, or certain electronics. While the items themselves may be lightweight, the container needed to ship them en masse can increase their volumetric weight drastically.
Why do logistics providers use volumetric weight?
The reason why volumetric weight is used by logistics providers is simple: shipping costs are influenced by both the weight of the shipment and the space it occupies in the aircraft or truck.
Think of it this way: shipping vehicles can only hold a certain volume of cargo, and space is even more of a premium on express shipping services. Even if you're sending parcels overseas that are light, if they take up a lot of space, the carrier is losing potential revenue from other shipments.
Consider a company that ships polystyrene foam packaging as an example. While the foam is lightweight, it occupies significant volume. In this case, the volumetric weight will likely be much higher than the actual weight, and the shipping rates will be calculated accordingly.
Tips for optimizing shipping costs with volumetric weight
Here are some actionable tips for Singaporean businesses to help minimize shipping costs by managing volumetric weight:
- Use efficient packaging: This is the most crucial step. Reduce excess volume in your shipments by using boxes in appropriate sizes and minimizing empty space. Avoid oversized packaging, which increases volumetric weight unnecessarily.
- Check weight before shipping: Always compare the volumetric weight and actual weight before shipping. This allows you to anticipate shipping costs and make adjustments if needed.
- Consider consolidating shipments: If you're shipping multiple items, see if they can be consolidated into a single, smaller package through services like Breakbulk Express (BBX). This can reduce the overall volumetric weight and lower shipping rates.
Frequently asked questions (FAQs) about volumetric weight
The volumetric divisor is a number used in the formula to calculate volumetric weight. It represents the cubic centimeters (cm³) per kilogram (kg). While 5000 is a common divisor for air freight, it can vary depending on the carrier and the specific service. Always confirm the divisor with your chosen carrier, such as DHL Express, as it can vary.
If your shipping cost is higher than initially estimated, it's likely because the volumetric weight of your package is greater than its actual weight. Always check the volumetric weight before shipping to avoid unexpected expenses.
Focus on minimizing the package dimensions to reduce volumetric weight. Use smaller, appropriately sized boxes, and employ efficient packing methods to reduce empty space.
You can calculate volumetric weight manually using the formula provided earlier. Alternatively, most carriers, including DHL Express, offer online calculators and tools to help you check the volumetric weight and get accurate shipping rates.
Understanding what volumetric weight is and how to calculate it is essential for managing shipping costs effectively, especially for businesses in Singapore that rely on efficient and cost-effective international delivery.
DHL Express provides various tools and resources for small businesses to help you accurately estimate shipping rates and optimize your shipments. Use our online calculators and consult with our experts to ensure you're getting the best value for your shipping logistics needs.
