Incoterms are international rules that are accepted by governments, legal authorities and practitioners worldwide for the interpretation of the most commonly used terms in international trade. They either reduce or remove altogether uncertainties arising from differing interpretations of such terms in different countries.

The scope of Incoterms is limited to matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold, but excluding “intangibles” like computer software.

Dimensional weight is a standard formula used throughout the freight industry that considers a package’s density when determining charges. Transportation charges are based on the gross weight of the shipment or the dimensional weight of the shipment; whichever is greater. Simply put, dimensional weight is when the weight of a package is inappropriately less than the actual size of the package. For example, a box filled with inflated balloons.

When the actual weight of a package is less than the calculated dimensional weight, carriers charge by the dimensional weight. Weight or Volume (wt.) whichever is higher is your chargeable weight.

Volume weight is determined by using the following calculations for those shipments with dimensions in centimeters: (Length x Width x Height) divided by 6000 = volume in kilograms.