When by Air or Sea shipment, there are difference between the freight rate calculate. They have different calculate proportion.
One of the most common questions I get asked often is “how to calculate CBM and freight ton”, specially by those clients who get charged per Freight Ton or Revenue Ton.
Firstly CBM stands for CuBic Meter. This is the most common unit used for the measurement of volumetric cargo. Metric Tons as you know refers to the weight of cargo (1 Metric Ton = 1000 Kilograms).
Freight Ton or Revenue Ton is derived by calculating the weight or volume of the cargo and the freight is charged based on whichever is higher.
When you have the dimensions of the package, first of all convert the measurement into meters.Normally dimensions are in Length x Width x Height.
If for example the dimensions of a cargo crate is
3.2 x 1.2 x 2.2 meters then the CBM is simply 3.2 x 1.2 x 2.2 = 8.448 CBM.
The weight of the package is 1200 KGS.
When you need Air or Express shipment, the freight rate is calculated by Kilograms. There is a proportion 1CBM=167KGS.
When you need LCL sea shipment, the freight rate is calculated by Cubic Meter. LCL is the abbreviation for "Less than container loading". There is a proportion 363KGS=1CBM.
By the way, when you need FCL sea shipment, the freight rate is calculated by container. FCL is the abbreviation for "Full container loading".
For Air shipment, as mentioned above, if the rate is quoted as for example USD1.2 per Kilograms and the weight of the package is 1200 KGS. According to the proportion 1CBM=167KGS, the freight ton is 8.448 x 167 = 1410.816KGS. As 1410.816 is higher than 1200, then the freight rate for this will be
1410.816KGS x USD1.2 = USD1692.9792
For LCL sea shipment, as mentioned above, if the rate is quoted as for example USD20 per Cubic Meter and the volume of hte package is 8.448CBM. According to the proportion 363KGS=1CBM, the freight ton is 1200 / 363 = 3.3058CBM. As 3.3058 is lower than 8.448, then the freight rate for this will be
8.448CBM x USD20 = USD168.96
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