What is the rate basis for most ocean commodity rates?

The rate basis for most ocean commodity rates is determined by both weight and measure, often referred to as W/M. This method is commonly used in shipping to ensure that the cost of transportation reflects both the physical characteristics of the cargo and the space it occupies in the vessel.

When setting rates based on W/M, carriers consider the greater of the two metrics—either the actual weight of the shipment or the volume it occupies when converted to weight (known as volumetric weight). This approach allows for a more equitable pricing structure, especially when dealing with items that may be light but take up a large amount of space, or heavy items that do not occupy much space.

This dual consideration helps optimize cargo loading and ensures that shipping costs are fair and commensurate with both the cargo's weight and its impact on space utilization within the shipping container. Thus, using weight or measure as the basis for ocean commodity rates is a standard practice in international shipping and logistics.