Billed Weight, Actual Weight, and Dimensional Weight

What is Actual Weight?

Actual weight is simply how much the package weighs when you put it on a scale. It’s the straightforward measurement of how much the package weighs in pounds or kilograms. This is often the first number that comes to mind when people think about shipping.

When Is it Used?

Shipping carriers use actual weights when it is greater than the dimensional weights. However, if you are shipping a dense package that doesn’t take up much space, the actual weight will likely be the deciding factor for your shipping costs. Understanding this is crucial, especially when you are trying to minimize expenses.

Understanding Dimensional Weights

Dimensional weight, often referred to as DIM weight, is a pricing technique used by shipping carriers. It considers the volume of the package rather than just how much it weighs. This means that the size of the package can influence the shipping cost even if the actual weight is low.

How Is it Calculated?

Dimensional weights are calculated using the formula:

{Length*Width*Height}/{DIM Factor}

The DIM factor is a number set by the carrier that represents the cubic inches per pound. It’s crucial to note that the dimensional weight might be greater than the actual weight, especially for large but light packages.

Billed Weights: The Decider

The billed weight is used to calculate the shipping charges. It is the greater value between the actual and the dimensional weights. Carriers choose the higher of the two to determine the cost, ensuring they account for both size and weight in their pricing.

Billed vs. Actual vs. Dimensional Weights

To better understand the relationship between these, let’s consider a scenario. Imagine you have a large, lightweight package:

Actual Weight: 10 pounds
Dimensions: 20 inches x 20 inches x 20 inches
DIM Factor: 166 (a common factor used by many carriers)

First, calculate the dimensional weight:

[length(in) X Width(in) X Height(in)]/166

For example, a package measuring 20” x 20” x 20” would have a dimensional weight of 48.19 lbs.

In this case, the dimensional weight of 48.19 pounds is greater than the actual weight of 10 pounds. Therefore, the billed weight would be 48.19 pounds. The shipping charges will be based on the billed weight because it is the higher value.

Why Do Shipping Carriers Use Dimensional Weights?

Shipping carriers use dimensional weights to ensure they are compensated fairly for the space a package occupies in their transportation vehicles. By considering both the weights and volumes, carriers can optimize their cargo space and improve efficiency. This practice helps balance the load and ensure that larger, lightweight packages do not occupy valuable space that could be used for heavier shipments.

How to Reduce Shipping Costs

Understanding these concepts helps businesses make informed decisions to reduce shipping costs. Here are some strategies:

Optimize Packaging

Use Smaller Boxes: Select box sizes that fit your products snugly to reduce the dimensional weight.
Remove Unnecessary Packaging: Excess padding or oversized boxes increase volume, and thus, the dimensional weight.

Negotiate with Carriers

Volume Discounts: If you ship large volumes, negotiate better rates with carriers.
DIM Factor Adjustments: In some cases, you may negotiate a more favorable DIM factor.

Choose the Right Carrier

Different carriers may use different DIM factors and offer various discounts. Comparing rates and DIM factors can lead to significant savings.

Need help differentiating between billed, actual, and dimensional weights? Contact us today so we can help!