Tonnage is a measure of the cargo-carrying capacity of a ship. The term derives from the taxation paid on tuns or casks of wine. In modern maritime usage, "tonnage" specifically refers to a calculation of the volume or cargo volume of a ship. Tonnage should not be confused with displacement, which refers to the actual weight of the vessel. Tonnage is commonly used to assess fees on commercial shipping.
Tonnage measurements are governed by an IMO Convention (International Convention on Tonnage Measurement of Ships, 1969 (London-Rules)), which applies to all ships built after July 1982.
Gross tonnage (GT) is a function of the volume of all of a ship's enclosed spaces (from keel to funnel) measured to the outside of the hull framing. The numerical value for a ship's GT is always smaller than the numerical values for both its gross register tonnage. Gross tonnage is therefore a kind of capacity-derived index that is used to rank a ship for purposes of determining manning, safety, and other statutory requirements and is expressed simply as GT, which is a unitless entity, even though it derives from the cubic feet of volumetric capacity.
Net tonnage (NT) is based on a calculation of the volume of all cargo spaces of the ship. It indicates a vessel's earning space and is a function of the moulded volume of all cargo spaces of the ship.
A commonly defined measurement system is important, since a ship's registration fee, harbour dues, safety and manning rules, and the like may be based on its gross tonnage (GT) or net tonnage (NT).
Gross register tonnage (GRT) represents the total internal volume of a vessel, where one register ton is equal to a volume of 100 cubic feet (2.83168 m3); a volume that, if filled with fresh water, would weigh around 2,800 kg or 2.8 tonnes. The definition (and calculation) of the internal volume is complex; for instance, a ship's hold may be assessed for bulk grain (accounting for all the air space in the hold) or for (omitting the spaces into which bulk, but not baled cargo, would spill). Gross register tonnage was replaced by gross tonnage in 1994 under the Tonnage Measurement convention of 1969, and is no longer a widely used term in the industry.