Sea freight is always considered to be the lowest in cost. For shipping high volume and heavy cargo, sea freight is the most cost-effective and safe logistics solution. Today, we are going to introduce you to how to calculate the sea freight rate. For instance, if you need to import some furniture sets from China to your country, your freight forwarder in China will offer the rates. What aspects should you consider before your confirming a shipment? The answer should be type of service chosen, the time of shipping, the equipment used, etc.
Calculate the volumetric weight of your shipment
The base of cost calculation in sea freight depends on the type of movement. In general, it is either CBM/Ton or container. For Bulk and Break-Bulk freight, it is in CBM or Ton, the same applies to LCL ( Less than Container Load) shipments. But when the cargo is containerized, it will depend on the shipping containers used.
For shipments calculated by Weight and Volume, in sea freight transport, the ratio is “ 1:1” which means every Ton equals one CBM (Cubic Meter). In formula to calculate the volume:
If the volume of a shipment is 10 CBMs and the weight is 5,000 Kgs (5 Tons) then the 10 CBMs are considered for cost calculations (the chargeable weight is the higher between volume and weight).
How sea freight rate is determined
There are different points to consider when requesting a sea freight quotation. These are the most important ones:
POL (Port of Loading): Where will the sea shipment be originated from. Choosing the right “POL” is going to help in reducing the sea freight rates and pre-carriage (origin country trucking) costs.
POD (Port of Discharge): The seaport where the shipment will be released is a major game-changer for the sea freight cost. Freight rates will vary between carriers for the same destination port.
Commodity: The nature of the cargo itself is important. If the items require climate control we will have to use a reefer container, or dimensions are more than normal shipping containers height. It may need an open-top container which may double the price on certain occasions.
Shipping Container Type: There are many kinds of shipping containers. The most commonly used ones in sea freight are ( 20 ft, 40 ft, 40 HC, 20 RF, 40 RH, and 40 OT). Picking the right container for your cargo will save on the shipping costs big time.
Time of shipping: There are certain parts of the year where sea freight rates spike either because the basic ocean freight rates go up or when sea carriers apply extra charges like GRI (General Rate Increase) or some PSS ( Peak Season Surcharge) and congestion fees, … etc. Therefore, when planning your shipping, it is good to consider this thing to save on the shipping costs.
In sea freight, shipping costs can be either per CBM/Ton, per container (or TEU: Twenty-foot Equivalent Unit), or per shipment. Therefore it is important to calculate the volume and measure the weight properly. For example to move shipment by LCL (Less than Container Load): you will need to pay the freight, CFS charges, Bill of Lading fees, and documentation.
If you are puzzled about how to calculate the sea freight, feel free to contact our professional forwarder team to get an instant quote for shipping from China to your destination cities.
