Tare weight, net weight, and gross weight explained

Tare weight is the weight of an empty container before it is filled with goods or products. It is also called unladen weight. When transporting or shipping goods, tare weight is generally considered because it can affect the total shipping cost. 

However, the tare weight may vary depending on the type of container used to hold goods during transport. Tare can apply to the weight of drums, boxes, semi-trailers, railcars and more.

How to Determine the Tare Weight of a Container? 

Most shipping companies or logistic companies already know the tare weight of containers. However, it can be calculated easily if you know the gross weight and net weight of a shipment. The formula for calculating tare weight is mentioned below:

Tare weight = Gross Weight - Net Weight

 Example of Tare Weight 

Let us understand the tare weight by example. Suppose the gross weight of a shipment is 2,800 kg, and the net weight is 2,000 kg. Then, to know the tare weight, put these values in the given formula.

Tare weight = Gross weight (2,800) - Net weight (2,000)

The tare weight of a container is 800 kg. However, the weight of a container varies based on its size, type and construction materials and any modifications or repairs can also impact its weight.

Net weight is also referred to as net mass or payload. It is basically the weight of goods or cargo alone, excluding packaging or containers. It is also defined as the pure weight of the product without any ancillary components. 

This weight is typically visible on the label of packaged goods or food items. Knowing the net weight of a product when shipping is important as it will affect the overall weight of the shipment.

<h3> How to Determine the Net Weight of a Product? </h3>

To calculate a product's net weight, you first weigh it while it is in a container or package to get a gross weight. After calculating the gross weight, remove the product from the package and calculate the package weight to know the tare weight. After knowing both weights, apply the formula below.

Net weight = Gross Weight - Tare Weight

Another way to calculate the net weight is to take the weight of one unit and multiply it by the number of units shipped. In this case,

Net Weight = Weight of One Unit * No of Units Shipped

Example of Net Weight 

Let us understand both of these formulas by example. Let us take a scenario where the gross weight of the shipment is 5,000 kgs, and the tare weight is 1,000 kgs; then the net weight is calculated using the formula:

Net weight = Gross Weight (5,000) - Tare Weight (1,000)

The net weight of the shipment is 4,000 kgs.

Let us understand the second formula by example: Rahul ordered 3000 pieces of small electronic devices. The weight of one device is around 150 grams. Then, the net weight of a product is calculated using the following formula:

Net Weight = Weight of One Unit (150) * No of Units (3,000)

The net weight of a product is 450,000 g or 450 kg.

Gross weight also refers to the total weight of the shipment. It is basically the weight of goods plus the packaging used for transportation. For instance, to calculate the gross weight of liquid, the weight of liquid plus the bottle or can in which it is stored is calculated. 

Furthermore, if a product is packaged in cans and stored in cartons, then the weight of cans and cartons contributes to the gross weight.

 How to Determine Gross Weight? 

To determine the gross weight, you need to know the net weight and tare weight of a container. The formula for calculating the gross weight is mentioned below:

Gross Weight = Net Weight + Tare Weight + Other Accessories

The other accessories can include the weight of the pallet or packaging.

Example of Gross Weight 

Let us now understand the gross weight. For example, Arjun ships goods in a 20-foot container. The tare weight of the empty container is 2,200 kg. The net weight of the cargo inside the container, which includes the goods themselves, is 4,500 kg. 

In addition, the shipment includes pallets and packaging materials, which together weigh 300 kg. To calculate the gross weight of the container, you simply add the tare weight, the net weight and the weight of any additional items like pallets or packaging. So, the calculation would be:

Gross Weight = Tare Weight (2,200 kg) + Net Weight (4,500 kg) + Other Accessories (300 kg)

Therefore, the gross weight of the shipment is 7,000 kg.

The weight information on shipping documents is crucial to meet regulatory compliance. The net weight and gross weight are mentioned in various key documents to help with custom inspections, safety checks and pricing. 

Each of these documents serves a specific purpose and helps in keeping track of shipment accurately. Some of these key documents are mentioned below:

Bill of Lading 

The bill of lading includes the gross weight of the shipment. It is useful in determining the shipping cost and also helps ensure the total weight of goods transported. A weight discrepancy in the BOL can cause delays, legal issues or disputes.

Custom Declaration 

Customs declarations typically require both net weight and gross weight to ensure compliance with regulations and for accurate assessment of duties and taxes. Incorrect weight details on documents can lead to delays and fines from the authorities.

 Packing List 

The packing list provides a detailed breakdown of the shipment, including the net weight of the cargo and sometimes the tare weight. The list ensures that the correct quantity and weight are being shipped.

In a shipping and logistics business, managing weight correctly is crucial for reliable and safe shipping. It also helps avoid fines, delays and accidents. Staying within the prescribed weight limits also helps transport shipments without penalties. Below are some reasons that state the importance of weight compliance in the shipping business:

Regulatory Guidelines 

Authorities regulate each mode of transport, whether by road, rail, sea or air, with strict weight restrictions. Exceeding the weight limits on container vessels or trucks can lead to hefty fines, penalties or even the detention of the cargo. It is crucial to meet the weight compliance to avoid legal issues and keep the shipment moving on schedule.

 Impact on Costs 

Weight is directly linked to the cost of shipping. The freight cost is directly based on the gross weight of the container. By ensuring proper weight compliance, businesses can avoid overpaying for shipping and find the most cost-effective options for transporting goods. Miscalculating or overloading can result in extra charges due to reweighing or the need for a larger transport vehicle.

 Overloading Risks 

Excess weight can cause significant issues, such as damage to containers, cargo loss or failure of equipment like cranes and vehicles. Overloading can also result in structural damage to transport vehicles or vessels, leading to costly repairs and delays.

Safe Handling and Transportation 

Compliance with weight limits ensures safe loading, unloading and transportation of cargo. Suppose the weight is not evenly distributed or is too heavy for a container or vehicle. In that case, it can affect the stability of the transport, potentially leading to accidents or cargo damage. Correct weight distribution is key to maintaining balance and preventing shifting during transit.

Tare, gross and net weight are crucial weight terms in the shipping process. All these weights serve a distinct purpose for proper handling, cost calculation and regulatory compliance. Businesses involved in import and export business need to have a better understanding of these terms. 

Understanding and accurately documenting these weights is critical for smooth operations, avoiding delays or penalties and maintaining cost efficiency in international shipping.

However, in addition to this, businesses should also consider investing in marine insurance policy to protect their goods against unforeseen situations during transit. There are various marine insurance in India for businesses to help them pick the best policy.

TATA AIG offers marine insurance plans that are customised to meet your unique business requirements. With our plans, you can protect the shipment against various risks during transit, such as damage, theft, etc.

Furthermore, we offer a marine open policy, which provides coverage for cargo across multiple shipments throughout the year. This type of policy is both efficient and cost-effective for businesses and individuals who regularly ship goods by sea, as it covers multiple shipments under a single agreement.

 Can shipping labels display tare weight? 

Yes, shipping labels can display tare weight, although it is not always required. Including the tare weight on the label helps provide a complete view of the total weight of the shipment, which can be useful for customs, billing and weight compliance.

What happens if weight is beyond the specified range during transit? 

If the weight exceeds the specified range during transit, it can lead to overloading, causing safety hazards, damage to the cargo or equipment failure. Additionally, the shipper may incur extra charges, delays due to customs inspections, or legal penalties for violating weight regulations, potentially disrupting the entire shipment process.

Does the weight of the shipment also affect the marine insurance premium? 

Yes, the weight of the shipment can affect the marine insurance premium. Generally, heavier shipments may attract higher premiums because they carry a higher risk of loss or damage during transit.