Therefore, its costs substantially higher than the shipment of a dry container. Sometimes, a shipper may get preferential CBM rates from the ocean carrier depending on the volume of shipments and the regularity of business with them.
Calculation of CBM Chargeable Weight While shipping goods, it is possible that a relatively light package takes up more space than a heavier yet smaller one. In such a scenario, if the shipping company levies the charges on both the packages based on their weight, the bigger package would not be profitable to ship, since it occupies more space but weighs less.
To solve this problem, the concept of CBM chargeable weight was introduced. Actual Weight : The gross weight of the package that is to be shipped. DIM Factors for different modes of Shipping. Of the two, whichever is higher accounts for the chargeable weight by the carrier.
As mentioned earlier, CBM for LCL shipments sent via ocean freight, the estimation factor for calculating the volumetric weight is generally i. Now, there can be two different situations that can arise:. Since the weight of the container exceeds the CBM value, the weight will be considered as the basis for the calculation of freight cost. In an air shipment, the CBM calculation remains the same, but the freight is charged on actual weight or volumetric weight after multiplying CBM by the DIM factor — whichever is higher.
The DIM factor generally used in Air freight is i. Hence, if the shipping company levies the charges on both the packages based on their actual weight, the bigger yet lighter package would not be profitable to ship, since it occupies more space and weighs little. To be able to solve this problem, companies use the concept of CBM chargeable weight.
To understand chargeable weight, we first have to understand the following terms:. Actual Weight : Actual weight is the gross weight of the package that is to be shipped. The highest value between the two is taken into account by the company to charge the shipment. This method is known as the chargeable weight. Ocean freight shipping companies have prioritised the space taken up by an LCL shipment in a container over the weight of the shipment.
For calculating CBM for LCL shipments sent via ocean freight , the estimation factor for calculating the volumetric weight is generally -- one cubic meter is equal to about kilograms. And the DIM factor which is generally used for sea freight as There are two different situations which can arise, both of them have been explained below Since the weight is less than 1 ton and CBM is greater than weight of the shipment hence it will be considered as the basis for calculation of freight cost.
The term Cubic Meter or CBM is commonly used in ports, warehouses, and in the sea — air — land freight. A cubic meter, abbreviated to CBM, is a measurement of volume that is generally used for calculating storage space, storage charges, and freight charges.
It is the volume of an object that is one meter wide by one meter long by one meter high 1 m X 1 m X 1 m.
To understand this concept better, let us take the example of a loaded pallet of cornflour weighing KG. LCL cargo also referred to as Groupage cargo does not fill a container and hence it is usually consolidated with other similar cargo, to fill a container going to the same destination. If the weight of the consignment exceeds 1 ton KG , then the weight is used to calculate freight charges.
Taking the above example, a consignment of KG of cornflour will have a specific space requirement. A consignment of pop-corn of the same weight KG will have a different space requirement. Here the cornflour will take less space than the consignment of pop-corn. At the same time, the more the weight of a consignment, the lesser the weight of other consignments that can be included in the container.
Hence, to make up for the lost space if the carrier were to charge by weight for the shipment of pop-corn, it would take the CBM or volumetric weight. Another scenario is when there is fragile cargo or cargo that cannot be stacked more than a single layer high.
The cost of storage space lost here will be considered when quoting the freight rate to the customer. For LCL shipments, freight companies calculate the freight charge using both CBM w X l X h as well as by using the volumetric weight weight converted to volume. Volumetric weight or weight-based volume is derived by dividing the weight of cargo in kilograms by Width 1.
Freight charges when calculated using volumetric weight of 0. This would mean that 1 CBM will be considered as 1 ton in weight. Freight charges will be based on this assumption. If the volumetric weight is more than 1 CBM then that will be taken to calculate the freight charges for the consignment. Cargo may not always come packed in regular shapes such as a cube or a rectangular box, with its side in straight lines and at right angles.
This means that at a given price you can transport one ton or 1 cbm of goods. That is why when you calculate the freight rate yourself, you should always use the higher value.
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