###### How is the container sea freight calculated?

In export negotiation, when the requirements of export commodities are clarified, the important condition for successful transaction is whether the quotation is reasonable; among the indicators of quotation, in addition to cost, expense and profit, there is also a very important factor that is freight.

Calculation of FCL Shipping

For FCL consignment container freight: One method is to charge according to the actual freight ton, the same as LCL. Another method, which is also commonly used at present, is to charge freight by box according to the type of container.

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

Calculation of minimum utilization rate of containers

1. What is the minimum utilization rate

Generally speaking, liner associations usually only calculate the tonnage of the goods in the container when charging container shipping freight, and do not charge for the weight or volume of the container itself, but there is a minimum requirement for the loading utilization rate of the container, that is, the “minimum utilization”.

1. The main purpose of minimum utilization

The main purpose of stipulating the minimum utilization rate of containers is that if the tonnage (weight or volume) of the loaded goods does not meet the specified requirements, the freight will still be calculated according to the corresponding billable ton at the minimum utilization rate, so as to ensure the interests of the carrier. . The weight or volume of the pallet is usually included when determining the minimum utilization of a container. The size of the minimum utilization rate mainly depends on the type and size of the container and the business strategy followed by the container liner company.

Calculation of the highest utilization rate of containers

1. What is the highest utilization rate?

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 (inner volume of the container), the freight shall be charged according to the specified inner volume of the container, that is to say, the excess part is free of freight.

1. The purpose of highest utilization

The main purpose is to encourage cargo owners to use containers to ship goods and to maximize the use of the internal volume of containers. For this reason, in the calculation of container shipping freight, shipping companies usually stipulate a maximum utilization rate calculated by the internal volume of the container for various specifications and types of containers.