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This is how you spend your sea freight! Calculation of container freight rates

2022-07-11

In export negotiations, once the requirements of the exported goods have been clarified, an important condition for the success of the transaction lies in the reasonableness of the offer; among the various indicators of the offer, in addition to costs, fees and profits, another very important factor is the freight costs.



 一.Calculation of fcl

For full container consignments: one method is the same as for LCL cargo, based on the actual freight tonnage. Another method, and one that is more commonly used at present, is to charge freight rates per container according to the type of container.

In the case of full container consignments and the use of containers owned by the shipping company, the carrier has a "container minimum utilisation" (COntainer Minimum Utilisation) and "container maximum utilisation" (Container Maximum Utilisation). "In the case of full container consignments where the container is owned by the shipping company, the carrier has a provision to pay ocean freight based on COntainer Minimum Utilization and Container Maximum Utilization.

 二.Minimum container utilisation calculation


①What is the minimum utilisation rate

 

Generally speaking, the liner guild in the container shipping freight usually only calculate the number of tons of goods contained in the box, and not the weight of the container itself or volume of charges, but the container loading utilization rate has a minimum requirement, that is, "minimum utilization rate".

 

②The main purpose of the minimum utilisation rate

 

The main purpose of the minimum utilisation rate of the container is that if the tonnage of the goods loaded (weight or volume) does not meet the requirements, the minimum utilisation rate is still calculated according to the corresponding billing tons to ensure the interests of the carrier. In determining the minimum utilisation rate of a container, the weight or volume of the pallets is usually included. The size of the minimum utilisation rate depends largely on the type and size of the container and the business strategy followed by the container liner. Of course, in the rate schedules of some liner conferences, the minimum utilisation rate of a container is usually related only to the size of the box, regardless of the type of container.

 

③ Forms of minimum utilisation rate charging

 

 

At present, there are three main forms of minimum utilisation rate for containers: minimum load tonnage, minimum freight amount and a mixture of these two forms.  

 

The minimum load tonne can be a weight tonne or a volume tonne, or it can be a percentage of the container's loading capacity (load or volume). The minimum load tonnage expressed in weight or volume tonnes usually varies depending on the type and size of the container, but in some cases it can be the same. When a certain percentage of the container loading capacity is used to determine the minimum loading tonnage, the percentage is usually the same for the container's load and volume capacity, but of course it can be different.

 

The minimum freight amount is per ton or each container to provide a minimum amount of freight, which is also known as the "minimum package freight".

 

As for the above two forms of hybrid form is based on the following methods to determine the minimum utilisation rate of the container.

 

  ① container load capacity or volume capacity of a certain percentage plus the container unit volume or each container to provide the minimum amount of freight.

  ② minimum weight tons or volume tons plus a certain percentage of the container volume capacity.

三.Calculation of loss of case freight

 

When the total weight or volume of goods loaded in a container does not meet the minimum weight or volume tonnage specified, and the container loading capacity is not fully utilised, the cargo owner will pay a deficit freight. The loss of container freight is actually the freight charged for the shortage of billing tons, that is, the difference between the minimum billing tons and the actual number of goods loaded.

 

In calculating the loss of freight, the highest rate is usually used for the calculation of the cargo carried in the container. In addition, when the minimum utilisation rate of a container is expressed in the form of a "minimum package rate", if the rate is less than the minimum package rate after multiplying the number of tonnes of cargo carried in the container by the basic rate and adding the relevant surcharge, the latter rate is charged.

四. Calculation of maximum container utilisation

 

①What is the maximum utilisation rate?

 

Container maximum utilization rate means, when the container contains the volume of goods tons more than the volume of container loading capacity (container volume), freight charges according to the provisions of the container volume, that is to say, beyond the part of free freight.


②The highest utilisation rate charged for freight rates

 

If the box of goods rate level only one, then according to the rate; If the box is equipped with different levels of goods, the following two practices are usually used to charge freight: a practice is the box of all goods according to the box of the highest rate level of goods applicable rate calculation freight; another practice is according to the rate of high and low, from the high rate to the low rate calculation, until the total volume of goods tons and the provisions of the container content until the total volume tonnage of the cargo is equal to the specified container content.

It should be noted that if the owner of the goods does not declare the contents of the container in detail as required by the carrier, the freight will be charged on the basis of the contents of the container and the rate will be the highest rate applicable to the contents of the container. If only part of the cargo in the box is not declared in quantity, then the freight for the undeclared part is charged at the difference between the inner volume of the box and the freight tonnage of the declared cargo.


③Purpose of the maximum utilisation rate

The main purpose is to encourage cargo owners to use containers for the shipment of goods and to be able to make maximum use of the inner volume of the container. For this reason, in the calculation of container shipping freight, shipping companies are usually for a variety of specifications and types of containers provided for a container content volume converted by the maximum utilization rate.

For example, the maximum utilisation rate of 20ft container is 31 cubic metres, while the maximum utilisation rate of 40ft container is 67 cubic metres. The maximum utilisation rate of volume tons and not weight tons for the unit of calculation, because each container has its maximum load weight, in transport overweight is not allowed. Therefore, under normal circumstances, there should be no overweight containers, let alone the practice of encouraging overweight.



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