Globe Trade Sea Freight Calculation Method

Sea freight calculation method

Foreign trade sea freight generally has two ways: the first full container sea freight calculation, full container sea freight = basic sea freight + sea freight surcharge; the second sea freight LCL cost calculation, sea freight LCL cost = calculated by volume and weight after taking the larger.

1 ocean freight calculation for a full container

Full container ocean freight = basic ocean freight + ocean freight surcharge. One of them is "basic ocean freight," which the shipping business sets and which will not alter for a predetermined amount of time. Fuel surcharge, port congestion surcharge, and other charges are included under "ocean freight surcharge." Typically, freight forwarders will quote a "ALLIN" pricing, which is the total of the two fees mentioned above.

1. Basic freight rate

Basic freight rate = unit basic freight rate × number of full containers

2.Port Surcharge

Port surcharge 1 = Port surcharge per unit x number of containers (surcharge calculated by number of containers)

Port surcharge 2 = Port surcharge per unit x number of tickets (surcharge based on number of tickets) Number of tickets: For example, if you arrange two 20'GPs for one shipment and issue one ocean bill of lading, it is classified as one ticket.

2 Sea freight LCL cost calculation

Ocean freight consolidation cost = calculated by volume and weight and take the larger one.

1. Calculated using volume = basic freight unit x total volume (cubic meters, or CBM). (Sea freight LCL has a minimum billing of 1CBM, thus if your products are smaller than 1CBM, you must also charge 1CBM for them.)

2. Weight calculations are done by dividing the unit of basic freight by the entire gross weight (in tons). (The minimum billing for ocean LCL is 1TON, thus even if your cargo weighs less than 1TON, you must still bill for 1TON.)

3. LCL surcharge calculation.

Port surcharge 1: = unit LCL surcharge x RT (surcharge calculated by RT)

Port surcharge 2: = unit LCL surcharge x number of tickets (surcharge calculated by number of tickets)

(Explanation of the number of tickets: For example, if you arrange 2 LCL cargoes for one cargo, one bill of lading will be classified as one ticket, generally this situation is relatively rare.)

Choose which ocean freight cost is more cost-effective

Generally speaking, the choice of which ocean freight cost is cost-effective depends on the following factors:

1 The number and size of the goods

If the number of goods is small and the size is small, the sea freight consolidation may be more economical;

If the number of goods and the size of the larger, then the full container shipping may be more cost-effective.

2 Destination and distance

If the destination is far away and the shipping time is long, the cost of full container shipping is relatively low;

If the destination is close, the cost of ocean freight consolidation may be more economical.

3 Time urgency

Air freight would be a preferable option if there is a pressing need to get the items to their destination quickly; if there is some leeway in the schedule, sea freight would be the most cost-effective option.

4Level of service required

If a higher level of service is required (e.g. cargo tracking, insurance, etc.), full container shipping may be more appropriate;

If the service level required is not high, then sea freight LCL cost may be more economical.

Considering the above factors, you can choose the most cost-effective way of shipping cost according to the actual situation. Of course, when doing export business, you also need to pay attention to the packaging of goods, the preparation of shipping documents and tariffs and other related matters.