Sea Freight Calculation and Charges

Freight or Cargo means merchandise that is transported in bulk; cargo refers to the merchandise being transported by aircraft or ship while freight refers to truck and train. But now the term freight usually refers amount payable for carriage and cargo refers to merchandise only. Garments may be transported on freight-prepaid or freight-collect basis depending on Incoterms.

Sea Freight Charges
Sea freight charge refers to the freight rate or the price that is charged by a shipping line for transporting cargo from the source location to the destination point. The typical shipping line and distance between the source and the destination is another factor on which the freight charge depends. Sea freight is calculated on the volume of cargo in CFT or CBM. We send cargo by ship when time is not the issue.

Volume Calculation (CFT or CBM)

Freight volume for sea shipment is the measure of how big an object is in three dimensions, so the volume of a carton measure how much room there is inside of the box. To find it, the following formula may be used-

The formula for Volume Calculation

1. Inch to CFT = (L inch X W inch X H inch) ÷ (12 X 12 X 12)
2. Inch to CBM = (L inch X W inch X H inch) ÷ (39.37 X 39.37 X 39.37)
3. CM to CFT = (L cm XW cm X H cm) ÷ 30.48 X 30.48 X 30.48
4. CM to CBM = (L cm X W cm X H cm) ÷ (100 X100 X 100)

Example - 1
Carton Dimension L = 22 inch, W = 16 inch, H =14 inch

1. CFT = (22 X 16 X 14) ÷ (12 X 12 X 12) = 2.85
2. CBM = (22 X 16 X 14) ÷ (39.37 X 39.37 X 39.37) = 0.08

Example - 1
Carton Dimension L = 50cm, W = 40cm, H = 30cm

1. CFT = (50 X 40 X 30) ÷ (30.48 X 30.48 X 30.48) = 2.1188
2. CBM = (50 X 40 X 30) ÷ (100 X 100 X 100) = 0.06

Container size and capacity
The freight charge depends on container size, capacity utilized, and destination. The following table is prepared based on average charges.   

Container Size	Internal Dimension (mm)			Maximum Payload		Approximate Charge
	Length	Width	Height	CBM	CFT
20	5898	2352	2393	33.2	1170	$2,500.00
40	12032	2352	2393	67.7	2390	$3,500.00
40 HC	12032	2352	2698	76.4	2700	$4,000.00
45 HC	13556	2352	2698	86.0	3040	$4,500.00
**Dimension and Payload Source : Maersk Line, Charges are assumed**

Sea Freight calculation for an order 

Order Qty: 36,000 pcs
Qty per carton: 18 Pcs.
Carton Dimension: L X W X H = 22 inch X 16 inch X 14 inch
Container Capacity: 20ft- 33CBM, 40ft- 67CBM, 40ft HC-76CBM, 45ft-86.0 CBM
Container Charges: 20’ - $ 2500, 40’- $3500, 40HC- $4000, 45’- $4500

Workout-

1. No. of carton required
2. CBM per carton
3. Total CMB
4. Required containers
5. Total freight to be paid
6. Freight per Dzn. Garment

Solution-

1. No. of carton required = (36,000÷18) = 2000
2. CBM per carton = (22 X 16 X 14) ÷ (39.37 X 39.37 X 39.37) = 0.0807
3. Total CMB = (22 X 16 X 14 X 2000) ÷ (39.37 X 39.37 X 39.37) = 161.40
4. Required containers = 161.40 ÷ 80 (45 HC) = 2 Nos.
5. Total freight to be paid = 2 X $ 4500 = $ 9000.00
6. Freight per Dzn. Garment = 9000 ÷ 3000 (Dzn.) = $ 3.00