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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.

Revenue Ton

Last updated: February 9, 2026
R

A Revenue Ton (RT) is a standard unit used in freight pricing to calculate transport charges based on either weight or volume, whichever is higher. Typically, one RT equals one metric ton (1,000 kg) or one cubic meter (CBM). This method ensures carriers are fairly compensated whether cargo is heavy or lightweight but space-consuming. It is widely used in ocean freight, breakbulk, and project cargo pricing.

When calculating RT, shippers measure both the total weight and the total volume of the cargo. The higher of the two determines the chargeable quantity. For example, if a shipment weighs 2 metric tons but occupies 3 cubic meters, it will be charged as 3 RT. This approach balances the use of vessel capacity and prevents undercharging for bulky cargo.

Revenue Tons help create transparent and consistent pricing across different cargo types. They allow carriers to plan space efficiently and help shippers understand how their cargo characteristics affect cost. Knowing how RT is calculated also encourages better packing and space optimization, which can reduce freight expenses.

Overall, the Revenue Ton is a practical and widely accepted measurement in freight billing. It simplifies pricing decisions, supports fair cost allocation, and plays a key role in accurate freight calculation and contract clarity.

FAQ

Frequently Asked Questions about Revenue Ton

Clear answers to the most common questions people have when learning about Revenue Ton.

Because transport capacity is limited by both space and weight, charging the higher value ensures fair pricing for all cargo types.

Compare total weight in metric tons and total volume in cubic meters—the higher figure becomes the RT used for billing.

It is most common in ocean freight and breakbulk shipping, with similar concepts applied in air freight as chargeable weight.