Billed weight refers to the specified weight of a particular item or shipment that is designated for billing purposes. It is the weight measurement used to calculate the cost associated with transporting goods. The billed weight can be based on various criteria, such as the actual weight, dimensional weight, or a combination of both.
Actual weight refers to the physical weight of the item being shipped. It is the measurement obtained using scales or weighing equipment, usually expressed in pounds or kilograms. Dimensional weight, on the other hand, takes into account the size or dimensions of the package. It is calculated by multiplying the length, width, and height of the package and dividing the result by a predetermined dimensional factor. This method is commonly used when shipping lightweight but large-sized packages.
The billed weight may be determined by comparing the actual weight and dimensional weight, and the higher of the two is selected. For example, if a package has an actual weight of 8 pounds, but its dimensional weight calculation yields 10 pounds, then the billed weight will be 10 pounds. The reason for using dimensional weight is to ensure fair pricing and prevent undercharging for bulky or oversized packages.
Billed weight is crucial for accurate pricing in various industries, such as logistics, supply chain management, and transportation. It helps companies calculate shipping costs, determine appropriate packaging, and ensure that customers are billed correctly based on the weight of the items being shipped.
