How to calculate the Freight cost for Sea Shipments?

Now that you have a shipment to arrange for your customer to a seaport. You have checked for the rates for shipping this shipment to your desired port. However the rates given are based on cubic meter (cbm) or revenue tonne (r/ton). How do you go about checking your estimated cost?

What you need?

First, you need the dimensions of the packed box or carton or crate etc. You need the length, width and height in meter.
Using the formula, Length (in meter) X Width (in meter) X Height (in meter), you will get the volume which is in cubic meter (m3 or cbm)
If your shipment is weight cargo, meaning the weight of the shipment is more significant than the volume, then your shipment may be charged based on revenue tonne (r/ton). Here, you just have to convert the weight of the shipment which is usually in kilograms (kgs) to tonnes (ton).

What is the cost?

The total weight of the shipment should not exceed 1 tonne or 1000 kilograms. If the weight of the shipment exceeds 1 tonne, rate will be charged based on the weight in tonnes. It is therefore important to note freight is charged based on volume or weight, whichever that is higher. You can have a shipment of big pieces of styrofoam or even a small carton of steel bolts and nuts, despite the size or weight, the freight charges may be similar in the end.

You may question why is this so? The shipment is loaded into a shared container. This container is limited in terms of volume and weight. The bulkier your shipment is, the more space it takes up, so you are charged accordingly. The heavier your shipment is, the more weight it takes up, similarly it limits the weight of the other shipments in the same container. Hence, it is relative that you are charged according to the weight taken up by your shipment as well.
Using the above 2 information, you should be able to get the total estimated cost of arranging your shipment to your customer.

Points to Note?

However do note that certain rate items can be based on the nearest unit, meaning if your shipment is 4.5m3, it may be charged as 5m3. There are also certain rate items that are based on blocks of 4m3, meaning if your shipment is 2m3, it will be charged as 1 unit of 4m3. If your shipment is 7m3, it will be charged as 2 units of 4m3.
To check your volume online, see the below website.

3 thoughts on “How to calculate the Freight cost for Sea Shipments?

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