Understanding Volumetric Weight
Logistics carriers charge based on either the actual weight or the volumetric (dimensional) weight of your package, whichever is greater. This prevents light, bulky items from taking up an entire airplane without paying for the space.
Dimensional Weight Divisors
- Air Freight: 6000 (1 CBM = 167 kg)
- Courier/Express: 5000 (1 CBM = 200 kg)
- Road Freight: 3000-4000 (1 CBM = 333 kg)
- Ocean Freight: 1000 (1 CBM = 1000 kg)
Customs Duty: FOB vs CIF
Customs duty is usually calculated in a cascading manner. In the US, duty is mostly calculated on FOB (Free On Board) value, which only includes the cost of the goods. In most of the rest of the world, duty is based on CIF (Cost, Insurance, and Freight), meaning you pay tax on the shipping costs as well.