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Revenue Tons and Stowage Factor: How Bulk and LCL Freight Pricing Works

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Revenue Tons and Stowage Factor: How Bulk and LCL Freight Pricing Works

Frequently Asked Questions

What is the difference between stowage factor and revenue ton?+

Stowage factor describes a commodity: the volume one tonne of it occupies when stowed, which is why it varies by cargo type. Revenue ton is a billing unit built from stowage factor in practice: it compares a specific shipment's weight-based tonnage against its volume-based tonnage and uses whichever is greater, so the carrier always bills on the higher-revenue basis for that shipment.

Does 1 CBM always equal 1,000 kg in ocean freight?+

No. That figure comes from the classic revenue-ton comparison of 1 cubic metre against 1 metric tonne, and many LCL consolidators use it as a rule of thumb for their own general cargo mix. It is not a regulation or a physical constant. The actual weight-to-volume breakpoint is set by each carrier or consolidator in its own tariff and can differ by trade lane, so it is worth confirming in writing rather than assuming.

How do I know if my shipment will be charged by weight or by volume?+

Work out the revenue tons both ways using the ratio your carrier or forwarder actually applies, not an assumed 1 CBM to 1,000 kg figure, then compare the two results. Whichever calculation gives the higher number is the basis you will be charged on. Dense, heavy-for-its-bulk cargo, like steel or machinery, is usually charged by weight, while bulky, light-for-its-bulk cargo, like baled textiles or packed-out general goods, is usually charged by volume.

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