Dong Fang International Containers
Dong Fang International Containers

How Are Shipping Freight Rates Calculated?

In export negotiation, when the requirements for export commodities are clarified, the important condition for successful transaction is whether the quotation is reasonable; among the indicators of quotation, in addition to cost, expense and profit, there is also a very important factor that is container freight.

1. Calculation of FCL Shipping Freight

For FCL consignment container freight: One method is to charge according to the actual weight, the same as LCL. Another method, which is also commonly used at present, is to charge freight by box according to the type of container. In the case of FCL consignment of container cargo and the container used is owned by the shipping company, the carrier has regulations on paying the ocean freight according to the "minimum utilization rate of containers" and "maximum utilization rate of containers".

2. Calculation of the utilization rate of minimum shipping freight for containers

There are three main forms of collecting container freight according to the minimum utilization rate of the dry cube container: the minimum loading ton, the minimum freight amount and the mixed form of the above two forms. The minimum load ton can be a weight ton or volume ton, or it can be a percentage of the container's loading capacity (load or volume). The minimum load tonnage expressed in weight or volume tons usually varies by container type and size, but may be the same in some cases. When the minimum loading ton is determined by a certain proportion of the shipping container's loading capacity, the proportion is usually the same for the container's load capacity and volume capacity, but of course there are differences. The minimum freight amount is a minimum freight amount per ton or per container, which is also called "minimum container freight". As for the mixed form of the above two forms, the minimum utilization rate of the container is determined according to the following methods: a certain percentage of the shipping container load capacity or volume capacity plus the minimum freight amount specified by the unit volume of the container or per container; the minimum weight ton or volume ton plus A percentage of the capacity of the upper container.

3. Calculation of shipping freight for lost containers

When the total weight or volume of the goods loaded in the bulk shipping containers fails to reach the specified minimum weight ton or volume ton, and the container's loading capacity is not fully utilized, the owner will pay the shipping freight for the missing container. The freight for missing containers is actually the freight charged for the insufficient billable ton, that is, the difference between the specified minimum billable ton and the actual number of loaded goods. When calculating the shipping cost of the missing box, the highest rate among the goods in the box is usually used as the calculation standard. In addition, when the minimum utilization rate of the container is expressed in the form of "minimum package freight", if the freight amount obtained by multiplying the tonnage of goods in the container and the basic rate, plus the relevant surcharge, is still lower than the minimum package rate. If the shipping cost of the box is charged, the shipping fee will be charged according to the latter.

4. Calculation of the highest shipping freight utilization rate for containers

If there is only one rate level for the goods in the box, the rate shall be calculated and charged; if there are different levels of goods in the box, the following two methods are usually adopted when calculating the freight: one method is that all the goods in the box are charged according to the rate. The container freight rate is calculated at the rate applicable to the goods of the highest rate class in the box; another method is to calculate the freight rate according to the level of the rate, starting from the high rate to the low rate, until the total volume of the goods is equal to the specified volume of the container until. It should be pointed out that if the cargo owner fails to declare the details of the goods in the box according to the requirements of the carrier, the freight will be charged according to the volume of the container, and the rate will be calculated according to the highest rate applicable to the goods in the box. If only part of the goods in the box has no declared quantity, the freight for the undeclared part shall be calculated and charged according to the difference between the container volume and the declared freight ton.