What is Weight Break?
Weight break is a term used in logistics to refer to the breaking point where the shipping cost changes based on the weight of the shipment. It is the point at which the unit cost per pound or kilogram changes. The exact weight breakpoint varies depending on the carrier and the shipment type. Shippers must determine the weight break before shipping to ensure they pay the correct amount for the shipment.
Significance of Weight Break in Logistics and E-commerce
Weight break plays an essential role as this technique helps businesses lower the cost of shipping, reduce handling costs and improve customer service. Here are the benefits of a weight break.
1. Improves efficiency: Weight break optimizes shipping costs and reduces delays in order fulfillment. It helps to improve the overall efficiency of the supply chain.
2. Reduces shipping costs: Weight break lowers the cost of shipping by allowing the shipper to take advantage of the lower shipping rate for lighter packages.
3. Improves customer satisfaction: It ensures that customers receive their orders promptly and are satisfied with the shipping cost.
4. Enhances supply chain performance: It aids in reducing inventory costs and improves supply chain performance.
5. Facilitates international trade: Weight break facilitates international trade by providing shippers with more options for shipping goods internationally.
Prerequisites of Weight Break and How It Works
Conditions for weight break:
1. The packages must be of similar size and weight.
2. The packages must fit into the same shipping container.
3. The packages must be shipped together without compromising safety or security.
4. The total weight of the packages must be, at most, the maximum weight limit of the shipping container.
How it works:
The packages are weighed and sorted by size and weight, and then the boxes are grouped into shipments based on their size and weight. Following that, the cost of each shipment is calculated and compared to determine which combination of packages necessitates the least amount of shipping cost.
Use Cases of Weight Break
Suppose a shipper may have a base rate of AUD 5 for the first 10 kilos of cargo and then a rate of AUD 2.50 for each additional 10 kilos. If the shipment weighs 20 kilos, the shipper will pay AUD 10 for the load (AUD 5 for the first 10 kilos, plus AUD 5 for the additional 10 kilos). Weight break pricing encourages businesses to ship lighter packages, which saves the shipper money on shipping costs.