How to calculate container sea freight? Detailed introduction to shipping costs

For containerized goods shipped in full container, the calculation is based on the actual freight tonnage, that is, one method is to calculate according to the same LCL method. However, in actual business, the LCL rates provided by different freight forwarders often differ based on weight tons and dimension tons.

Calculate the shipping cost of the whole box

For containerized goods shipped in full container, the calculation is based on the actual freight tons, that is, one method is to calculate based on the same LCL method. In addition, it is also a commonly used method at present, which is to charge freight by box according to the type of container. Prices also vary for various sizes.

Calculation of LCL freight

The calculation of LCL’s freight mainly adopts the “W/M” mode. Cargo transportation costs are divided into weight tons (W) and dimension tons (M). The unit of measurement “W/M” means the unit of measurement is tons, the unit weight is 1000 kilograms, the unit is cubic meters, the unit of measurement is “W/M”. Theoretically, the default unit rate is generally fixed. When solving this problem, more consideration is given to the comparison of single-variable freight rates.

However, in actual business, the LCL rates provided by different freight forwarders often vary based on weight tons and size tons. In this case, dual variables need to be considered and calculated based on a combination of different rates and freight tons. Compare.

First of all, we have to distinguish between full container (FCL) and bulk cargo (LCL) shipping costs, because they have different charging standards and calculation methods.

How to calculate container sea freight? Detailed introduction to shipping costs

Shipping costs for full container (FCL) generally include the following items:

Ocean freight (O/F): This is the main fee charged by the shipping company. It varies according to different routes, shipping schedules, container types and cargo properties,
Terminal operating charge (THC): This is the container handling fee charged by the terminal, including trailer fees, loading fees, etc.,
Documentation fee (DOC): This is the fee charged by the shipping company for making a bill of lading or telexing a bill of lading,
Container seal fee (SEAL): This is the fee charged by the shipping company for providing container seals. Each seal has a unique number, which effectively protects the goods from theft
Port Security Facility Fee (ISPS): This is a fee charged by shipping companies to ensure the normal operation of port security facilities
Automatic manifest system entry fee (AMS/ACI/ENS, etc.): This is the fee charged by the shipping company to submit cargo information to the local customs before departure according to the requirements of the destination country. Different countries have different systems and abbreviations,
Transshipment fee (ABY): This is the fee charged by the shipping company for switching ships or terminals at the transit port,
Leveling fee (ALM): This is the fee charged by the shipping company for placing pallets or other supports in the container to protect the smooth transportation of the goods,
Fuel surcharge (BAF/FAF/EBA/EBS, etc.): This is a surcharge charged by shipping companies to adjust shipping costs based on fluctuations in international oil prices. Different routes have different abbreviations,
Currency depreciation surcharge (CAF): This is a surcharge charged by shipping companies to adjust shipping charges based on exchange rate fluctuations,
Container cleaning fee (CLB): This is the fee charged by the shipping company for cleaning dirt or odors inside or outside the container,
Container Management Charge (CMC): This is a fee charged by shipping companies to manage container inventory and dispatch,
Change of port fee (COD): This is the fee charged by the shipping company for changing the port of destination during transportation,
Demurrage (DEM): This is the fee charged by the shipping company for using the container every day after the free container use period,
Ro-Ro equipment handling charge (EHC): This is the fee charged by the shipping company for handling Ro-Ro equipment (such as cars, tractors, etc.),
Equipment handover note (EIR): This is a document provided by the shipping company to record the handover of the container, including the box number, seal number, box condition, etc.,
Equipment rental surcharge (EQH): This is the fee charged by the shipping company for renting special equipment (such as reefers, open-top boxes, etc.)
Empty return fee (ECR/ERC): This is the fee charged by the shipping company to transport empty containers from the destination port back to the origin or other places,
Emergency Space Surcharge (ESS): This is a fee charged by the shipping company to ensure the provision of space during peak seasons or when supply and demand are tight.
Freight Rate Adjustment (GRI): This is a fee charged by the shipping company to adjust shipping charges based on market conditions,
Peak Season Surcharge (PSS): This is a fee charged by shipping companies for providing additional services during peak seasons or special holidays,
Panama Canal Surcharge (PCC): This is a fee charged by the shipping company and paid to the local government through the Panama Canal,
Port Congestion Surcharge (PCS): This is a fee charged by the shipping company for the additional costs incurred by extending the docking time or changing the docking sequence when the port is congested,
War surcharge (WRS): This is a risk protection fee charged by shipping companies and paid to insurance companies or other institutions in war or tense areas,
Container Imbalance Surcharge (CIC): This is the additional cost charged by the shipping company due to the imbalance in the quantity of imported and exported goods that causes difficulty in container dispatching.
Cargo transfer surcharge (CDS): This is the additional cost charged by the shipping company because the goods are transferred to other ports or other destinations at the transit port,

Shipping costs for bulk cargo (LCL) generally include the following items

Ocean freight (O/F): This is the main fee charged by the freight forwarding company. It varies according to the weight or volume of the goods
Documentation fee (DOC): This is the fee charged by the freight forwarding company for making a bill of lading or telexing a bill of lading,
Automatic manifest system entry fee (AMS/ACI/ENS, etc.): This is the fee charged by the freight forwarding company to submit cargo information to the local customs before departure according to the requirements of the destination country. Different countries have different systems and abbreviations,
Fuel surcharge (BAF/FAF/EBA/EBS, etc.): This is charged by the freight forwarding company and is adjusted based on international oil price fluctuations;
Currency devaluation surcharge (CAF): This is a surcharge charged by freight forwarding companies to adjust shipping costs based on exchange rate fluctuations,
Destination port miscellaneous charges (DTHC): This is the container handling fee charged by the destination port terminal, including trailer fees, unloading fees, etc.,
Destination port customs clearance fee (DCC): This is the fee charged by the destination port customs clearance company to handle import customs clearance procedures, including customs declaration fees, commodity inspection fees, taxes, etc.,
Destination port storage fee (DWC): This is the fee charged by the destination port warehouse for storing goods. It is generally calculated based on the weight or volume of the goods and the number of days of storage. There is a free period and an overdue charge standard.
Delivery charge at the destination port (DDC): This is the fee charged by the freight forwarder or logistics company at the destination port to transport the goods from the warehouse to the customer’s designated location. It is generally calculated based on the weight or volume of the goods and the distance. There is a minimum charge standard, usually in US dollars. Calculated per ton or per cubic meter.

The above is the shipping cost details of full container (FCL) and bulk cargo (LCL). I hope it will be helpful to you. Of course, in actual operation, there may be other surcharges, such as war surcharges, port congestion surcharges, emergency space surcharges, etc., which need to be communicated and confirmed with the shipping company or freight forwarding company according to the specific circumstances. In addition, when paying, you should also pay attention to distinguishing between prepaid (PP) and collected (CC) items to avoid misunderstandings or disputes.

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