Volume Rate

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What is Volume Rate?

A volume rate is a freight pricing method where transport costs are based on the space a shipment occupies rather than its actual weight. It is most commonly applied when cargo is bulky relative to its weight and takes up significant capacity in a truck, container, or aircraft. Volume rates are useful for the following reasons:

  • Supporting cost planning: A clear rate per cubic unit makes pricing easier to estimate during quoting and budgeting.

  • Rewarding efficient packing: Reducing wasted space through better packaging or palletisation can directly reduce cost.

  • Aligning cost to capacity: Especially for shipments where the main constraint is space, not weight.
     

While volume-based pricing can be advantageous, it does not automatically mean a lower overall cost. The final charge depends on the carrier’s tariff, the trade lane, and how efficiently the cargo is packed. Volume rates are most relevant when space, rather than weight, is the primary constraint, and comparing them with alternative pricing methods helps determine the most commercially suitable option.

How is Volume Rate Calculated?

  • Measure dimensions: Record the shipment’s length, width, and height (carton, crate, or pallet).

  • Calculate volume: Multiply length × width × height to get the total cubic volume.

  • Apply the rate: Multiply the volume by the carrier’s rate per cubic unit (for example, per m³).


This is most relevant when items don’t pack densely or have awkward shapes that create unused space.