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# How to calculate ocean freight for LCL or bulk cargo?

Ocean freight rates are calculated based on the shipping company's tariffs. Currently, the format and content of tariff tables developed and published by different shipping lines may vary, but the basic content is usually the same.

First of all, the shipping lines' tariff tables usually require the classification of Chinese commodities into a number of classes according to the different product types and nature of the commodities, as well as the difficulty of carrying out loading and storage.transportation calculation In the same time route, due to the different grade system of China's commodities, the basic management fee rate (rates) charged by shipping companies will also be different. Therefore, there exists a great correlation between the grade of the commodity and the rate development.

Secondly, the calculation of freight rates varies. For example, heavy goods are generally charged on a weight tonnage basis, light goods are charged on a size tonnage basis, some high-value goods are charged as a percentage of FOB value, and some goods are charged on a blended basis, e.g., first on a weight tonnage or size tonnage basis, and then a number of ad valorem freight rates are added. Tariffs are calculated in the following main ways.

1) Ocean freight is charged according to the weight of the goods, denoted by W, where W is the weight, indicating the weight, usually the actual gross weight of the goods.

2) Ocean freight is charged according to the volume of the goods, denoted by m, where m is the dimension, indicating the size or volume. As a matter of fact, freight is charged according to the volume and weight of the goods. The volume is converted into weight according to a certain coefficient, which is the volume weight.

(3) The sea freight is calculated according to the higher of the weight or volume of the goods, which is expressed as "Wu002FM", where W is the weight and M is the size, which means comparing W or M and calculating the sea freight according to the larger one. The conversion method of volume and weight is to convert the volume into volume weight first - that is, the volume of the goods is calculated according to a certain conversion coefficient or formula, the calculated volume weight is compared with the actual weight, and the freight is charged according to the larger one.

4) Charged according to a certain percentage of time way of the FOB value of the Chinese goods, expressed by Ad Val or A.V., Ad Val or A.V. is the abbreviation of Ad Valorem (Ad Valorem Freight).

5) Ocean freight is charged according to the higher of the weight, volume or value of the three types of goods expressed as "W/m or AD Val", with W being the weight, M being the measurement and AD Val being the value of the goods.

6) There are also goods that are charged per unit or per head, the former for vehicles and the latter for live animals. For bulk commodities, such as grain, ore, coal, etc., due to the large volume, low price, easy to load and unload, etc., the shipping company can negotiate freight rates with the owner separately in order to secure the supply of goods.

Calculating the freight rate according to the freight bill is a complicated work, which not only needs to be familiar with the basic content of the freight bill, but also requires meticulous work. When calculating freight rates, we should first calculate the basic freight rate based on the basic rate, and then find out various additional items,Intra Asia Routes including the surcharges to be paid.

There are many items of these surcharges. For example, due to different commodities, different ports or other reasons, there may be additional charges, and we must keep abreast of their changes.

### Vessel surcharges are generally categorized as follows.

1) Surcharges added due to the characteristics of commodity structure to carry out different, such as overweight as well as surcharge, overlength surcharge, cabin management fee, cabin washing fee and so on.

2) Surcharges for different ports, such as port congestion surcharge, port selection surcharge, direct shipping surcharge, bypass surcharge, etc.

3) Surcharges temporarily increased for other reasons, such as fuel surcharge, currency depreciation surcharge, comprehensive rate increase surcharge, temporary risk surcharge, peak season surcharge, freeze surcharge, etc.

In fact, there are many other types of transportation surcharges. It is worth noting that some surcharges, such as port congestion surcharges, account for a significant percentage of the freight cost, ranging from as low as 10% to as high as 100% of the base freight rate, or even more than double the base freight rate. Therefore, when calculating freight rates, you must pay attention to the calculation of surcharges to avoid unnecessary losses.

To summarize, to calculate the freight rate of ocean freight LCL or bulk cargo, it is necessary to consider the type, weight, volume, value and other factors of the cargo, and refer to the shipping company's freight table to determine the basic rate and surcharge. At the same time, it is necessary to pay attention to the changes of additional charges to ensure the accurate calculation of freight rates.