What costs are included in the quotation of China’s shipping containers?

In export negotiations, when the requirements for export commodities are clarified, the important condition for the success of the transaction is whether the quotation is reasonable or not; among the various indicators of the quotation, besides cost, fee and profit, there is another very important factor is the freight. So, when you need to export goods from China to countries such as Indonesia/Philippines, how is the sea freight calculated?Let’s learn together.

China Sea Freight

 

 

 

Calculation of FCL freight

For the calculation and collection of container cargo freight for FCL consignment: one method is to charge according to the actual freight ton, just like LCL cargo. Another method, which is currently the more common method, is to charge freight by container according to the type of container.

In the case of full container consignment of container goods and the container used is owned by the shipping company, the carrier pays the sea freight according to the “Container Minimum Utilization” and “Container Maximum Utilization” Provisions.

1. What is minimum utilization

Generally speaking, when the liner union charges container sea freight, it usually only calculates the tonnage of the goods in the container, and does not charge for the weight or volume of the container itself. However, there is a minimum requirement for the loading utilization rate of the container, that is, “minimum Utilization rate”.

2. What is the maximum utilization?

The meaning of the highest utilization rate of the container is that when the volume ton of the goods contained in the container exceeds the specified volume loading capacity of the container (container internal volume), the freight is charged according to the specified container internal volume, that is to say, the excess part is free of freight.

 Sea Freight Service from China

 

Calculation of LCL freight

LCL freight calculation mainly adopts “W/M” method. Usually, the cargo freight ton is divided into weight ton (W) and size ton (M). According to the gross weight of the commodity, 1000 kilograms is regarded as 1 weight ton; 1 cubic meter is regarded as 1 size ton; the billing standard “W/M” means that the weight ton and the size ton of the commodity are selected for billing.

However, in actual business, the LCL rate given by different freight forwarders is often different in terms of weight ton and size ton. In this case, double variables must be considered, and then calculated according to different rates and freight ton combinations and compare.

container ship from China

When calculating the FCL box rate from China to Indonesia/Philippines and other countries, it is necessary to compare the order of (40 feet-20 feet-LCL) according to the volume. At the same time, there are two aspects that must be paid attention to: first, when it comes to LCL, it should be noted that “W/M” is to compare the product of the freight ton and the rate, and the price is calculated according to the higher LCL freight; second, when calculating the total freight, no matter Whether it is FCL or FCL+LCL, it must be calculated according to the lowest price of the total freight.

China's containers in port

Of course, you can entrust a professional and reliable freight forwarder to handle your needs for exporting goods from China to Indonesia/Philippines, with reasonable quotation, professional service, and timely delivery to avoid losses. Shenzhen Focus Global Logistics Co., Ltd. has been deeply involved in the industry for more than 22 years, and has won the trust and recognition of customers with professional and efficient services and preferential and reasonable China shipping quotations. If you need to export goods from China in the near future, please feel free to contact us——TEL: 0755-29303225, E-mail: info@view-scm.com, looking forward to cooperating with you!


Post time: Mar-24-2023