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Glossary

Trade Finance Glossary and Export Import Terms

Home > Finance Glossary > Tonnage

What is Tonnage?

Tonnage refers to the total weight or carrying capacity of cargo, often used to measure shipping volume or vessel capacity.

How It Works:

  • Cargo weight is calculated in tons.
  • Vessel capacity is measured in tonnage.
  • Freight and logistics planning are based on this measure.
  • It is used in shipping documentation and pricing.

Benefits:

  • Enables accurate assessment of cargo volume and vessel capacity
  • Supports efficient freight pricing and cost calculation
  • Facilitates optimal utilization of transport resources
  • Enhances planning for bulk cargo shipments

Example:

A bulk shipment is measured at 500 tons to determine freight charges and vessel capacity.

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