Gross Weight vs. Net Weight Shipping: What is the Difference?

In the world of shipping and logistics, there are certain terms that are very crucial to understand. Two such terms that have a direct relationship with shipping costs and are used in daily parlance are Gross Weight and Net Weight. 

It is imperative to understand their difference for various compelling reasons. It becomes all the more important in international shipping and when shipping volumes of a business are large scale.

In this article, let us understand Gross Weight vs. Net Weight shipping differences, their importance and how to calculate gross weight and net weight. We will also discuss tips for their accurate weight measurement.

Importance of Accurate Gross Weight and Net Weight in Shipping

Cost Calculations

To calculate shipping costs, accurate calculation of weight is very important. The Gross weight of the cargo often decides the freight rates. With heavier shipment, space requirement and cost also increases.

Other charges such as customs duties, port fees and miscellaneous charges are also decided based on the Gross Weight.

If the weights are miscalculated, it may result in financial loss and other complications. 

Cargo Consolidation

Logistics providers often combine multiple shipments from different consignors into a single container. This is called cargo consolidation and it offers various benefits such as reduced shipping costs and time savings to businesses and consumers.

For optimising cargo consolidation, the accurate Gross Weight of the container is essential. This will enable the logistic provider to efficiently distribute the shipment.

Safety

Knowing and distinguishing between Net vs. Gross Weight is also important from a safety perspective. It is essential to have accurate weight measurements to ensure that the shipment is stowed and secured properly in transportation vehicles and vessels. 

Inaccurate calculations may lead to overloading or improper balance, which may lead to accidents, capsizing of vessels or cargo spillage.

Legal Compliance

Shippers are subjected to various legal compliance requirements and they need to provide accurate Gross and Net Weight information for their shipments. These compliances are designed to protect the environment, ensure safety and help in smooth operations. 

These regulations also extend across various transportation modes such as road, air and sea. All the parties in the supply chain are obligated to declare the accurate weights of their shipments. Failure to comply with these requirements may result in legal consequences such as fines, sanctions and rejection of shipments. 

What is Net Weight in Shipping?

Let us first understand the terms Net Weight and Gross Weight separately and then distinguish between them.

Net Weight is the weight of only the product without including the weight of product packaging, accessories or any additional material. It is the weight of the raw material which goes into manufacturing the product only without any extraneous elements. 

Let us take an example of a canned food product. The net weight here will include only the weight of the food and not the weight of the can. 

In retail, the Net Weight of the product is usually written on the label to indicate the exact quantity of the product the consumer will be receiving. 

In the context of shipping, Net Weight is used to calculate the total weight of the cargo before it is packaged and sent for transportation. It is a crucial parameter to determine the shipping costs of the actual goods being shipped.

What is Gross Weight in Shipping?

Gross Weight is the weight of the product as well as the weight of its immediate packaging and any other types of packaging and containers used in its transportation. It is the total weight of the entire package including the product, packaging and any protective materials such as pallets, crates or cartons. 

In the above example of a canned food product, the Gross Weight will include not only the weight of the food but also the weight of the can. 

In shipping, Gross Weight is crucial to calculate the shipping costs as freight companies often base their rate on Gross Weight or Volumetric Weight. It is also very critical in terms of safety and is used to determine the maximum cargo weight that a vessel can safely carry. 

There is another term, Tare Weight that we need to understand. Tare Weight is the weight of an empty container before it is filled with goods to be shipped. Tare Weight is different for different types of containers. In the example above, Tare Weight is the weight of the empty can without the food.

How to Calculate Net Weight and Gross Weight?

To calculate the Net Weight, first calculate the weight of the product while it is in its package or container, which is its Gross Weight. Then remove the product from its package and measure the weight of the package which is the Tare Weight.

Net Weight = Gross Weight - Tare Weight

The above formula can be used to calculate Net Weight when the product weight and quantity are not known. If the product weight and quantity are known, the following formula can be used;

Net Weight = Product Quantity x Product Weight

Gross Weight can be calculated by adding the Net Weight to the Tare Weight which is the weight of the package and container. 

Gross Weight  = Net Weight + Tare Weight

The Gross Weight calculation may vary depending on the mode of transportation. In air transport, Gross Weight includes the weight of the craft, the people and crew on board and the fuel. 

For road transportation, Gross Weight includes the weight of the truck along with the Net and Tare Weight. For water transport, Gross Weight includes the weight of the vessel along with the Net and Tare Weight. 

Difference between Gross Weight vs. Net Weight

Now that we know what is Net Weight, Gross Weight and how to calculate both, the differences between them become clearer. The key differences between Net Weight and Gross Weight can be summarised hence:

• Net weight refers to the weight of only the goods, while Gross Weight refers to the weight of the goods, their packaging weight and the weight of any additional items used for shipping

• Net weight remains the same irrespective of any mode of transportation, while the Gross weight may vary depending on the mode of transportation

• Tare weight is not included in Net weight but it is included in Gross Weight

• Net weight is used to determine the weight of the cargo before packaging while Gross weight is used to determine the shipping cost

Tips for Accurate Net Weight and Gross Weight Measurement

We have seen that accurate weight measurement is fundamental to determining the weight of the product and the total weight of the cargo. Any miscalculation can lead to inaccurate shipping costs, legal complications and a rise in the chances of mishaps due to overloading.

Here are some tips to ensure accurate weight measurement:

1. Certified and well-calibrated equipment

Use well-calibrated and accurate weighing instruments. It is of utmost importance that the methods of measuring Net Weight and Gross Weight are correct and the equipment is certified. It is necessary to ensure that the scale is suitable for the type and size of cargo.

2. Trained personnel

The personnel responsible for handling and weighing of the cargo need to be trained and updated with the relevant regulations. They should be able to handle the equipment properly and should be familiar with the measurement procedures. 

3. Regular maintenance and updation of equipment 

Measuring equipment should be regularly checked for proper functioning by putting quality control checks in place. As and when required, equipment needs to be replaced with the latest ones.

4. Partner collaboration

Maintain friendly and efficient collaborations with partners such as suppliers, freight companies, transporters and others. This will ensure accurate weight measurements throughout the supply chain and compliance with international standards.

5. Proper documentation

Net Weight and Gross Weight measurements should be properly recorded on relevant documents such as shipping documents, bills of lading, packing lists etc. 

6. Use of technology

Explore the latest technology such as blockchain and the Internet of Things (IoT) which offer greater precision, enhance transparency and traceability of weight measurements. The chance of human error can also be eliminated when technology is used effectively.

Wrapping Up

Understanding the importance, and difference between Net Weight vs.Gross Weight in shipping, and how to calculate their values accurately are fundamental to the efficient and effective functioning of the shipping industry.

This article will give you a better understanding of these aspects. If you have a business which involves frequent packaging and shipping, partnering with a reliable 3PL provider will make the process easier. Get in touch with us to learn more about how we can be of help to you.