CBM is crucial for several reasons in the shipping industry:
Dimensional Weight: This is a standard calculated for bulky yet lightweight shipments. For instance, a large pallet of ping pong balls takes up significant space but is light, potentially leading to higher shipping costs based on volume rather than actual weight. CBM helps determine this dimensional weight.
Chargeable Weight: This refers to the weight that freight carriers charge for, which could be either the actual weight or the dimensional weight, whichever is greater. For air freight, where space is at a premium, dimensional weight often becomes the chargeable weight.
In the Shipping world, freight class can impact shipping costs, especially for less-than-truckload (LTL) shipping. CBM plays a role in determining the appropriate freight class for a shipment, which is usually based on weight but can also consider size for large, lightweight items.