How to Calculate Basic Shipping fee?

The shipping fee in this article refers to the basic shipping fee (“pure” freight shipping fee), which is determined by the shipping company according to the nature of the goods, port conditions, and different freight shipping routes. Basic shipping fee is an important part of the cost of goods, which will have a great impact on product prices. Understanding the calculation method of shipping fee will help you choose the appropriate transport mode, adjust the purchase plan reasonably, and complete the goods in the most economical way. procurement and transportation.

Basic concepts: FCL, LCL, Freight shipping rates

freight shipping fee

FCL refers to the goods in which the entire container is owned by the same owner. Its full name is Full Container Load, or FCL for short.

LCL refers to the freight shipping methods that the goods in the same container belong to different owners. Its full name is Less Than Container Load, or LCL for short.

The shipping fee rate means the unit price or rate used to calculate ocean freight amount.

The Shipping Fee Estimate for FCL Transport and LCL Transport

The Estimation method of shipping container freight prices is divided into FCL freight price and LCL freight price according to the freight shipping methods is FCL or LCL.

FCL freight price is charged by container according to the container model, and varies according to different shipping companies and freight shipping routes.

shipping fee cost

There are two container size commonly used in freight shipping international: 20 ft container and 40 ft container. You should know their container shipping capacity:

The effective volume of a 20 ft container is 33CBM, the container weight limit is 25TNE;

The effective volume of a 40 ft container is 67CBM, and the container weight limit is 29TNE, 1TNE=1000KGS;

You can choose the appropriate container model according to the goods situation and then get the basic shipping fee quotation.

Kindly noted that the complete FCL shipping fee price should be the basic shipping fee plus regular surcharges and port incidental charges, we explain this point in another article “You need to know what does the “true” sea freight cost include”.

How to calculate the basic shipping fee under LCL transportation?

price of sea freight shipping

Different shipping companies, freight forwarders, terminals, and warehouses may have different methods to do the shipping fee estimate of LCL cargo, in their freight shipping price list, some are calculated according to the goods volume (sea freight cost per cubic meter), and some are calculated according to the goods weight (sea freight cost per kg)), but in simple terms, they choose the higher cost to charge.

In general, except for particularly heavy goods, most goods are priced according to the volume. The most common method is to compare the actual volume and weight volume of the goods, then multiply the large one with the shipping fee rate. The weight volume is converted according to the weight of the goods, generally 1CBM=1000KG.

Examples

The following examples will help you better understand the calculation of shipping fee for LCL transportation.

Example 1:

The Freight shipping rates is quoted at $ 50 per CBM, the measurement of cargo is given as:

Length 1000mm (1M), Width 700mm (0.7M), Height 900mm (0.9M)), and the total gross weight of the goods is 1500KG.

At this time,

Actual volume = length X width X height = 1 X 0.7 X 0.9 = 0.63 CBM.

       Weight volume 1500KG=1500/1000=1.5 CBM,

1.5 is greater than 0.63.

Since the LCL cargo should take the higher one to calculate the shipping fee, so the total shipping fee price = 1.5 X 50 $ = 75 $.

Example 2:

The shipping fee rate is quoted at $ 50 per CBM, there are 4 packages pieces of goods, each package measurement is given as: Length 1000mm (1M), Width 700mm (0.7M), Height 900mm (0.9M)), and the total gross weight of the goods is 1500KG.

At this time,

Single actual volume = length X width X height = 1 X 0.7 X 0.9 = 0.63 CBM.

Total actual volume= 0.63 X 4 = 2.52 CBM,

       Weight volume 1500KG=1500/1000=1.5 CBM,

1.5 is less than 2.52.

Since the LCL cargo should take the higher one to calculate the shipping fee, so the total shipping fee price = 2.52 X 50 $ = 126 $.

shipping freight

You can consider adjusting purchasing plan in these two situations:

1.In some ports, due to the lack of LCL supply and high cost, shipping freight broker will adopt the minimum charging standard pricing rules.

For example, the minimum charging standard is 1 CBM, if your cargo volume is less than 1 CBM, it will also be charged as 1 CBM cost. So you have to consider this element when with small volume and want to go relatively partial ports.

2.When your cargo is large volume, generally around 15 CBM, it is recommended that you can compare the shipping container freight prices to see LCL and FCL which is more economical.

At this time, you can also consider increasing the quantity of goods to share the whole shipping container freight prices, or appropriately reduce the quantity, adjust the quantity ratio of different goods to maintain the LCL transportation.

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