Ship Unit building volume calculation

Summary:

I am trying to build a ship unit for the shipping the cups which can be nested inside each other, I have defined the Packaged item height, width, length and weight, no volume is defined, I have also defined TIHI for pallet which has max weight, volume and height width and length defined, In/On/Max is set to On. I have also defined item as nestable and Incremental Nesting Height. My question is when OTM is calculating the volume of the ship unit based on the order config AUTO_CALC, will OTM consider the height defined on the packaged item or