GlossaryEN1 min readUpdated: Jun 22, 2026
Logistics billing method
When a logistics provider issues an invoice, the billing method determines the metric used to calculate charges for transportation, warehousing, or handling.
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Definition & Explanation
When a logistics provider issues an invoice, the billing method determines the metric used to calculate charges for transportation, warehousing, or handling. Common approaches include weight-based billing (per kilogram or tonne), volume-based billing (cubic metres or pallet positions), unit-based billing (per consignment or line item), and flat rates for fixed trade lanes. Carriers and shippers agree on the billing method contractually, as it directly affects cost predictability and exposure to margin risk when volumes fluctuate. In ocean freight, the W/M principle (Weight or Measurement) is widely used: the carrier charges whichever basis – weight or volume – yields the higher figure. The choice of billing method also shapes freight optimisation decisions: dense cargo benefits from volume-based rates, while light but bulky goods favour weight-based pricing.
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