How to calculate the cost of groupage: LDM, volume and weight
The cost of groupage depends not only on weight but on the space the goods take up. LDM and volumetric weight explained, so you understand what the rate consists of.
Why weight is not the only factor
In groupage you share a truck or container with other goods and pay for the space you actually occupy. So the rate depends on what consumes more of the vehicle’s capacity — weight or volume. Light but bulky goods are charged by volume; heavy, compact goods by weight.
To bring weight and volume to a common base, logistics uses volumetric weight and the loading metre (LDM).
What LDM and volumetric weight are
LDM (loading metre) is one metre of the length of the cargo space across its full width and height. A standard truck takes about 13.6 LDM. If your pallet takes up space that cannot be loaded on top of or next to it, it is charged by LDM, even if it is light.
Volumetric weight is calculated from the volume in cubic metres using a conversion factor (for road usually about 333 kg/m³, for air higher). The carrier charges the greater of the actual and the volumetric weight. Understanding these values helps estimate the cost in advance and pack the goods correctly.
The key values
| Value | What it means |
|---|---|
| LDM | One metre of trailer length across full width and height; a standard truck ≈ 13.6 LDM |
| Volumetric weight (road) | Volume × about 333 kg/m³ |
| Chargeable weight | The greater of actual and volumetric weight |
How to reduce the cost
Good packing and palletising reduce the space occupied and the final price. Sometimes it pays to stack the goods a little tighter or choose a different pallet type — and whether pallets can be stacked makes a real difference in LDM. For regular small consignments, consolidation with other shipments pays off.
We calculate groupage costs transparently — by LDM and volume — and advise on how to optimise packaging. Send us the dimensions and weights from your packing list and we will name the exact price for your cargo.
Questions and answers
How many loading metres does a standard truck have?
About 13.6 LDM.
Why is a light pallet charged by LDM?
Because if nothing can be loaded on top of or next to it, it occupies trailer length that cannot be sold to anyone else.
What conversion factor is used for road freight?
Usually about 333 kg per cubic metre; for air freight the factor is higher.
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