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Ocean Freight Explanation: Cost Calculation from FCL to LCL

When we talk about global trade, we have to mentionThe MaritimeAccording to statistics, shipping accounts for more than 80% of international freight transportation, which clearly shows its importance in global trade.
When you are engaged in import and export trade, a core cost is shipping costs, and many may be confused about how to calculate these costs.So this article aims to provide you with a brief and concise guide to help you better understand and calculate shipping costs.

1 Selection of box and box.

In maritime transportation, you can choose the way to transport goods in whole boxes or packs.

(1) The transportation of the package:This is the most economical option when you have enough cargo to fill one or more containers.
2) Transportation of baggage:When your cargo is insufficient to fill a container, your cargo will be transported in the same container with another person’s cargo.

Calculation of total shipping costs

The cost of shipping consists mainly of two parts: basic shipping charges and additional charges.

(1) The basic cost of transportation:This is calculated based on the number of containers you are transporting.
(2) Additional costs are:Includes fuel supplementary fees, port congestion supplementary fees, etc.
Usually, when the freight company offers, a “ALLIN” price is given, i.e. the sum of the basic shipping fee and the additional fee.

Calculation of shipping costs

The cost of a packet is calculated based on the volume and weight of the goods, usually taking the larger value.
In addition, there are other additional charges, which may be calculated based on the volume of the goods or the number of tickets (i.e. the number of freight receipts).

How to choose the most economical mode of transportation?

Which method to choose is most economical depends on the following:

(1) The quantity and size of the goods:Small batches, small volumes of goods may be suitable for packs; large batches, large volumes of goods are more suitable for whole boxes.
Destination and Distance:Long-distance, long-term transportation may be more suitable for the whole box.
The urgency of time:If the time is urgent, it may be necessary to consider choosing air transportation.
4) The needs of services:For goods that require more advanced services, the whole box may be a better option.

Finally, when doing export business, you should not only consider shipping costs, but also pay attention to the packaging of goods, transportation documents and customs and other matters.

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