Density-Based Pricing: Definition and Examples

What is density-based pricing?

Density-based pricing is a freight pricing approach in which the relationship between shipment weight and occupied space helps determine the rate. It is common in U.S. LTL shipping. Density may determine a class under an applicable NMFC item or be used in a carrier's separate pricing agreement.

How to calculate freight density

For a rectangular handling unit, multiply length, width and height in inches, then divide by 1,728 to obtain cubic feet. Divide the packaged weight in pounds by that volume to obtain pounds per cubic foot (pcf).

Example: A packaged pallet measuring 48 × 40 × 48 inches occupies approximately 53.33 cubic feet. At a total weight of 800 lb, its density is approximately 15 pcf. These figures illustrate the calculation; they do not establish a freight class or a shipping rate.

Include the pallet, packaging and protrusions when measuring. For multiple or irregular handling units, follow the carrier's measurement and calculation rules rather than assuming that every unit can be averaged together.

Why it matters

Extra packaging space can lower density even when the product weight stays the same. Reducing unnecessary empty space may improve transportation efficiency, but packaging must still protect the goods. Fragility, unusual handling and stacking restrictions can remain important even when density is high.

Weigh the shipment after packaging.
Measure the outermost points of each unit.
Record whether freight can be stacked.
Confirm the applicable NMFC entry and carrier terms.

Planning a shipment with DAGO Express

Accurate dimensions and weight help assess vehicle suitability and prepare a quote. Do not assume that a density calculation is the pricing formula for a dedicated vehicle. Request the service appropriate to the route and deadline.