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Freight Forwarding & Incoterms: Key Terms Explained in Detail

Discover the essential freight forwarding terms and Incoterms that define responsibilities, risks, and cost-sharing in global trade. This glossary provides clear, practical explanations to help you navigate documentation and operational decisions with confidence.

Net Tonnage

Last updated: January 20, 2026
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Net Tonnage (NT) is a measurement that represents the usable cargo-carrying capacity of a vessel. Unlike Gross Tonnage, which measures the ship’s total internal volume, NT focuses only on spaces available for carrying cargo, passengers, or earning freight revenue. It excludes areas such as engine rooms, crew spaces, and navigation areas. This makes NT a practical indicator of a vessel’s commercial capacity.

Net Tonnage is calculated using an international formula defined by maritime regulations. The result reflects how much of the vessel is dedicated to revenue-generating activities. Because NT directly relates to earning potential, it is widely used by port authorities and maritime administrations. Many operational charges are based on this measurement rather than the ship’s physical weight.

Ports commonly use Net Tonnage to calculate harbor dues, port fees, and pilotage charges. A higher NT usually results in higher fees because the vessel is capable of carrying more cargo or passengers. Ship operators factor NT into voyage cost planning and port selection decisions. Accurate NT reporting is essential to avoid billing disputes or compliance issues.

Overall, Net Tonnage plays a key role in maritime operations and port economics. It provides a standardized way to assess a vessel’s cargo capacity for fee calculations. By focusing on usable space, NT helps align port charges with a ship’s commercial use and operational impact.

FAQ

Frequently Asked Questions about Net Tonnage

Clear answers to the most common questions people have when learning about Net Tonnage.

Net Tonnage measures only cargo-earning spaces, while Gross Tonnage measures the vessel’s total internal volume.

Because it reflects the vessel’s revenue-generating capacity, it is a fair basis for harbor dues and service charges.

No. Net Tonnage measures volume, not weight, and should not be confused with deadweight tonnage.