Is Final-Mile Freight Cost Calculated by Volumetric Weight?

Is Final Mile Freight Cost Calculated by Volume Weight?

In the logistics industry, how final mile freight costs are calculated is a topic of great interest. Especially with the increasing popularity of cross-border e-commerce today, merchants are placing greater emphasis on controlling logistics costs. Final mile transportation refers to the last leg of the delivery process, from the distribution center or warehouse to the end consumer. Although this phase may seem simple, the cost accounting behind it is quite complex.

In recent years, with the rapid development of the e-commerce industry, many logistics companies have begun to use volume weight to calculate final mile freight costs. Volume weight is derived by dividing the volume of the goods by a certain standard density to obtain the weight. Compared to the traditional method of calculating based on actual weight, this approach better reflects the actual occupation of transport resources by light but voluminous goods. For example, common e-commerce products such as clothing, shoes, and hats are relatively light in weight but large in volume after packaging. If charged based on actual weight, it might lead to low transportation efficiency and increased operating costs.

News reports have mentioned that a well-known e-commerce platform pointed out in its annual report that using volume weight for billing can significantly enhance the overall efficiency of the logistics network. The platform stated that by introducing this mechanism, not only can vehicle space resources be better allocated, but also safety hazards caused by overloading can be reduced to some extent. This billing method also helps promote merchants to optimize their packaging design, reduce unnecessary packaging material waste, thereby achieving the goal of green environmental protection.

However, it is worth noting that volume weight is not suitable for use as the basis for final mile freight calculation in all cases. For high-density, low-volume goods, using volume weight for billing may not be reasonable. For example, electronic products or metal items, these types of items are usually heavy in weight and small in volume. If still charged by volume weight, it might result in merchants bearing excessively high logistics costs, which could affect their market competitiveness. In practice, many logistics companies will flexibly adjust billing rules based on the specific attributes of the goods.

To address this situation, some companies have started exploring more intelligent solutions. For instance, they utilize big data analysis technology to predict the average volume-to-weight ratio of different categories of goods, thereby formulating more accurate billing standards; or develop intelligent sorting systems to automatically detect the size and weight information of goods upon entry into the warehouse, so as to handle them according to the most appropriate billing method later. These innovative measures undoubtedly provide new ideas for solving the problem of final mile freight cost calculation.

Whether final mile freight is calculated by volume weight depends on various factors, including but not limited to product characteristics, customer needs, and market competition conditions. Nevertheless, with technological progress and the accumulation of industry experience, we have reason to believe that logistics companies will be able to find an optimal solution that meets the interests of all parties while promoting balanced development across the entire industry. At the same time, this also reminds merchants to fully consider whether the service model offered by potential partners aligns with their own business needs when choosing partners. Only then can they remain competitive in the fierce market competition.