Wednesday, June 22, 2016
2. Consignee’s Name and Address – Indicate the name and address of the person (company) to whom the goods are shipped.Please include contact name, address and Government Tax ID # (Social Security # if individual).
3. Producer Name and Address – Indicate name and address of person who produced or manufactured goods.
4. Sold To Party Name and Address – (if other than Consignee) – The person to whom the goods are sold.
5. Parties To This Transaction – Indicate whether parties involved in transaction are related or not related.
6. Gross Shipment Weight – Show gross weight.
7. Terms of Sale – Describe the terms and the conditions agreed upon by the vendor and the purchaser.
8. Brokerage and Duty Charges Billed to – self explanatory
9. Invoice Number and Date – Indicate seller invoice number and date.
10. Currency of Sale – Indicate the currency in which the vendor’s demand for payment is made.
11. Country of Origin – For Customs purposes, the country of origin of invoiced goods is the country where the goods are grown, produced or manufactured.
12. Description of Goods – The following information must be provided:
(a) Kind of Packages – Indicate the nature of the packages (e.g. cases, cartons, etc.).
(b) Marks and Numbers – Indicate the descriptive marks and numbers imprinted upon the packaged goods. Such marks and numbers are required to be legibly placed on the outside of all packaged goods whenever feasible.
(c) Description of goods – Give in specific terms a description of the merchandise being shipped.
13. Quantity (State Unit) – The quantity of each item included in the description field must be indicated in the appropriate unit of measure.
14. Unit Price – Provide a value in the currency of settlement (as defined under Field 10) for each item described in the description field.
15. Total Cost – Indicate the price paid or payable in the currency of settlement (as defined under Field 10) for the number of items recorded in the quantity field when they were sold by the vendor to the purchaser. Where there is no price paid or payable for the items recorded in the description field indicate the fair market value of the goods.
16. If goods not sold state the reason for export – self explanatory.
17. Additional Costs – Indicate any costs included in the sale which are not part of the unit cost (insurance, freight, etc.).
18. Invoice Total – The total price paid or payable for goods described on the invoice and/or continuation sheet(s) if used.
Note: Invoice must be signed and dated.
Incoterms or International commercial terms make trade between different countries easier. International Commercial Terms are a series of international trade terms that are used are used worldwide to divide he transaction costs and responsibilities between the seller and the buyer and reflect state-of-the-art transportation practices.
Incoterms directly deal with the questions related to the delivery of the products from the seller to the buyer. This includes the carriage of products, export and import responsibilities, who pays for what and who has the risk for the condition of the products at different locations within the transport process.
Incoterms and world customs Incoterms deal with the various trade transactions all over the world and clearly distinguish between the respective responsibilities of the seller and the buyers.
The 13 International Incoterms are:
Departure of goods by international transport with the risks and dangers to the Seller (Exporter) and Buyers (Importers)
"EXW"- Ex Works
Title and risk pass to buyer including payment of all transportation and insurance cost from the seller's door. Used for any mode of transportation.
Seller : In EXW shipment terms the Seller (Exporter) provides the goods for collection by the Buyer (Importer) on the seller or exporter's promise. Responsibility for the seller is to put the goods, in a good package which is adaptable and disposable by the transport.
Buyer : The buyer or Importer arranges insurance for damage transit goods. The Buyer or importer has to bear all costs and risks involved in shipment transactions.
(However, if the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale. )
Seller : In EXW shipment terms the Seller (Exporter) provides the goods for collection by the Buyer (Importer) on the seller or exporter's promise. Responsibility for the seller is to put the goods, in a good package which is adaptable and disposable by the transport.
Buyer : The buyer or Importer arranges insurance for damage transit goods. The Buyer or importer has to bear all costs and risks involved in shipment transactions.
(However, if the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale. )
"FCA"- Free Carrier named point
"FCA"- Free Carrier named point: Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier. Seller is obligated to load the goods on the Buyer's collecting vehicle; it is the Buyer's obligation to receive the Seller's arriving vehicle unloaded.
Seller : The Seller’s responsibility is to deliver the goods into the custody of the transporters at defined points. It is important for the chosen place of delivery to have an impact on the obligations of loading and unloading the goods.
Buyer : The Buyer nominates the means of transport or shipping mode and pays the shipment charges.
The seller and the buyer agree upon the place for delivery of goods. If the buyer nominates a person other than a carrier or transporter to receive the goods, the seller is deemed to fulfill his obligation to deliver the goods when they are delivered to that person.
Seller : The Seller’s responsibility is to deliver the goods into the custody of the transporters at defined points. It is important for the chosen place of delivery to have an impact on the obligations of loading and unloading the goods.
Buyer : The Buyer nominates the means of transport or shipping mode and pays the shipment charges.
The seller and the buyer agree upon the place for delivery of goods. If the buyer nominates a person other than a carrier or transporter to receive the goods, the seller is deemed to fulfill his obligation to deliver the goods when they are delivered to that person.
"FAS"- Free Alongside Ship
FAS- Free Alongside ship: Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller. Used for sea or inland waterway transportation. The export clearance obligation rests with the seller.
In FAS has price includes all the costs incurred in delivering the goods alongside the vessel at the port or nominated place of the buyer but there is not applicable charges to the seller for loading the goods on board of vessel and no ocean freight charges and marine insurance.
Seller: The responsibility of the seller are fulfilled when the goods are placed cleared along the ship.
Buyer: Buyer or Importer bear all the expenses and risks of loss or damage of transit goods which are delivered along the ship.
In FAS has price includes all the costs incurred in delivering the goods alongside the vessel at the port or nominated place of the buyer but there is not applicable charges to the seller for loading the goods on board of vessel and no ocean freight charges and marine insurance.
Seller: The responsibility of the seller are fulfilled when the goods are placed cleared along the ship.
Buyer: Buyer or Importer bear all the expenses and risks of loss or damage of transit goods which are delivered along the ship.
"FOB" - Free On Board
The FOB (Free on Board) price is inclusive of Ex-Works price, packing charges, transportation charges upto the place of shipment., Seller also responsible for o clear customs dues, quality inspection charges, weight measurement charges and other export related dues. It is important that the shipment term in the Bill of Lading must carry the wording "Shipped on Board' it must bear with signature of transporter or carrier or his authorized representative with the date on which goods were "Boarded".
Seller :Seller responsible for clear customs dues, quality inspection charges, weight measurement charges and other export related dues. It is important that the shipment term in the Bill of Lading must carry the wording "Shipped on Board' it must bear with signature of transporter or carrier or his authorized representative with the date on which goods were "Boarded".
Buyer : The buyer indicates the ship and pays freight, transfer expenses and risks is done when the goods passes or forwarding to the buyers warehouse by rail or ship.
Seller :Seller responsible for clear customs dues, quality inspection charges, weight measurement charges and other export related dues. It is important that the shipment term in the Bill of Lading must carry the wording "Shipped on Board' it must bear with signature of transporter or carrier or his authorized representative with the date on which goods were "Boarded".
Buyer : The buyer indicates the ship and pays freight, transfer expenses and risks is done when the goods passes or forwarding to the buyers warehouse by rail or ship.
"CFR"- Cost And Freight
In this term the exporter bears the cost of carriage or transport to the selected destination port, in this term the risk transferable to the buyers at the port of shipment.
Seller: The chooses the carrier, concludes and bears the expenses by paying freight to the agreed port of destination, unloading not included. The loading of the duty-paid goods on the ship falls on him as well as the formalities of forwarding. On the other hand, the transfer of risks is the same one as in FOB.
Buyer: The buyers supports all the risk of transport, when the goods are delivered aboard by ship at the loading port, buyer receives it from the carrier and takes delivery of the goods from nominated destination port.
Seller: The chooses the carrier, concludes and bears the expenses by paying freight to the agreed port of destination, unloading not included. The loading of the duty-paid goods on the ship falls on him as well as the formalities of forwarding. On the other hand, the transfer of risks is the same one as in FOB.
Buyer: The buyers supports all the risk of transport, when the goods are delivered aboard by ship at the loading port, buyer receives it from the carrier and takes delivery of the goods from nominated destination port.
"CIF"- Cost, Insurance And Freight
CIF- Cost, Insurance and Freight: Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.
This Term involves insurance with FOB price and ocean freight. The marine insurance is obtained by the exporter at his cost against the risk of loss or damage to the goods during the carriage.
Seller: The CFR extends additional obligation to the seller for providing a maritime So insurance against the risk of loss or damage to the goods. The seller pays the insurance premium.
Buyer: He supports the risk of transportation, when the goods have been delivered aboard the ship at the loading port. He takes delivery of the goods from the carrier to the appointed port or destination.
This Term involves insurance with FOB price and ocean freight. The marine insurance is obtained by the exporter at his cost against the risk of loss or damage to the goods during the carriage.
Seller: The CFR extends additional obligation to the seller for providing a maritime So insurance against the risk of loss or damage to the goods. The seller pays the insurance premium.
Buyer: He supports the risk of transportation, when the goods have been delivered aboard the ship at the loading port. He takes delivery of the goods from the carrier to the appointed port or destination.
"CPT"- Carriage Paid To
CPT- Carriage Paid To: Title, risk and insurance cost pass to buyer when delivered to carrier by seller who pays transportation cost to destination. Used for any mode of transportation.
This term uses land transport by rail, road and inland waterways. The seller and exporter are responsible for the carriage of goods to the nominated destination and have to pay freight up the first carrier.
Seller: The seller or exporter controls the supply chain after paying customs clearance for export. Seller or Exporter select the carrier and pay the expenses up to the destination.
Buyer: The risks of goods damages or loss are supported by the buyer as goods are given by the first carrier. The buyer or importer has to pay importation customs clearance and the unloading costs.
This term uses land transport by rail, road and inland waterways. The seller and exporter are responsible for the carriage of goods to the nominated destination and have to pay freight up the first carrier.
Seller: The seller or exporter controls the supply chain after paying customs clearance for export. Seller or Exporter select the carrier and pay the expenses up to the destination.
Buyer: The risks of goods damages or loss are supported by the buyer as goods are given by the first carrier. The buyer or importer has to pay importation customs clearance and the unloading costs.
"CIP"- Carriage And Insurance Paid To
CIP- Carriage and Insurance Paid To: Title and risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation.
This term is similar to Carriage Paid To but the seller has to arrange and pay for the insurance against the risk or loss or damage of the goods during the shipment.
Seller: The seller or buyer has to provide insurance and seller pays the freight and insurance premium.
Buyer: The buyer or importer supports the risks of damages or loss, as goods are given to the first carrier. The buyer has to pay customs clearance and unloading charges.
This term is similar to Carriage Paid To but the seller has to arrange and pay for the insurance against the risk or loss or damage of the goods during the shipment.
Seller: The seller or buyer has to provide insurance and seller pays the freight and insurance premium.
Buyer: The buyer or importer supports the risks of damages or loss, as goods are given to the first carrier. The buyer has to pay customs clearance and unloading charges.
DAF"- Delivered At Frontier
DAF- Delivered At Frontier: Title, risk and responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation.
This term is used when the goods are to be carried by rail or road. Seller : The seller is responsible to make the goods available to the buyer by the carrier till the customs border as defined in sales contract.
Buyer : The buyer takes delivery of the goods at the contract agreed point border and he is responsible for bearing all customs formalities.
This term is used when the goods are to be carried by rail or road. Seller : The seller is responsible to make the goods available to the buyer by the carrier till the customs border as defined in sales contract.
Buyer : The buyer takes delivery of the goods at the contract agreed point border and he is responsible for bearing all customs formalities.
DES"- Delivered Ex-Ship
DES- Delivered Ex-Ship: Title, risk, responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship to destination port. Used for sea or inland waterway transportation.
Seller: The seller is responsible to make the goods available to the buyer up to the named quay or after crossing the customs border.
Buyer: The buyer takes delivery of the goods from ship at destination port and pays the expenses of unloading.
Seller: The seller is responsible to make the goods available to the buyer up to the named quay or after crossing the customs border.
Buyer: The buyer takes delivery of the goods from ship at destination port and pays the expenses of unloading.
DEQ- Delivered Ex-Quay: Title and risk pass to buyer when delivered on board the ship at the destination point by the seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation.
"DDU"- Delivered Duty Unpaid
DDU- Delivered Duty Unpaid: Seller fulfills his obligation when goods have been made available at the named place in the country of importation.
Seller: The seller is responsible for all transportation cost and accept the customs duty and taxes as per defined in customs procedures.
Buyer: The buyer is responsible of the importation customs formalities.
Seller: The seller is responsible for all transportation cost and accept the customs duty and taxes as per defined in customs procedures.
Buyer: The buyer is responsible of the importation customs formalities.
"DDP"- Delivered Duty Paid
DDP- Delivered Duty Paid: Title and risk pass to buyer when seller delivers goods to the named destination point cleared for import. Used for any mode of transportation.
Seller: The seller is responsible to make the goods available to the buyer at his risk and cost as promised by the buyer. All the Taxes and duty on importation is promised by the buyer to the seller.
Buyer: The buyer is responsible to take delivery at a nominated place and pays the expenses for unloading of goods.
Seller: The seller is responsible to make the goods available to the buyer at his risk and cost as promised by the buyer. All the Taxes and duty on importation is promised by the buyer to the seller.
Buyer: The buyer is responsible to take delivery at a nominated place and pays the expenses for unloading of goods.
Friday, February 19, 2016
If you want to know measurements of an object in cubic meters, it's possible you may want to know how much space is needed to store such object. For example, if you want to know how tall is a container, how tall the height of a building is or even the height of a truck. Cubic meters are volume measurements which are calculated multiplying height by length by width and each dimension can be different. The same volume in cubic meters can have a varied height, depending on its length and width.
You know the goods carried by vessel in container. The containers are 20 feet, 40 feet and 40 feet high cube. There is a space in container which is called CBM (Cubic Meter). So the unit of container is CBM. The key thing for booking is what would be the approximate CBM of your consignment. The formula of calculating CMB as below:
Cartoon Measurement in cm x total cartoon quantity / 1000000
For example the cartoon measurement is L60 x W40 xH30 CM and total carton quantity 360,
So, CBM is = 60 x 40 x 30 CM x 360 Cartons/1000000
= 25.92 about 26 CBM
Loadability of ocean containers:
20ft container approximately 26-28 CBM
40ft container approximately 55-58 CBM
40ft HQ container approximately 60-68 CBM
45ft HQ container approximately 78 CBM
Please note that this calculator is intended only as a quick guide. In practice, actual loading will depend on accurate calculations based on how the items are loaded in the container and whether the dimensions of the cartons leave unusable space. Load factors will vary based on carton size and how they are stowed inside the containers.
Bangladesh is an agro based country. Bangladesh has many potential agro based items for export. Most remarkable agro based products are: rice, jute and tea. Ready-made Garments sector is one of the most cash cow for Bangladesh in export sector. Bangladeshi ready-made garments is worldwide recognized and popular. World’s investor and Bangladeshi business men are willing to business this sector due to cheap labor cost. Bangladesh is doing well in handicraft sector; mostly handicraft from jute is popular all over the world. Pharmaceutical sector is doing well in export area of Bangladesh. In Bangladesh there are many pharmaceutical companies have created due to the business opportunity here. Electronic and automobile sector opened a new era for Bangladesh. Walton group is an example for that and they are exporting their products many countries of the world. Shipyard is newly invented export item for Bangladesh. It will make a positive growth for Bangladeshi economy. Bangladesh has a boosting up opportunity in export.
Exports list from Bangladesh:
*Frozen Food*Fish
*Dried
*Salted & dehydrated
*Animal casings
*Agricultural products
*Vegetables
*Fruits
*Cut flower
*Betel leaves
*Potato
*Dry fruits
*Bay leaves
*Rice
*Tobacco
*Raw cotton
*Cotton waste
*Black cumin seed
*Spices
*Others
*Tea
*In packet
*In bulk
*Crude fertilizer
*Raw jute (fiodi.com jute products supplyer)
*Tortoise & turtles
*Crabs
*Duck chest feather
*Aquarium fish
*Crude drugs
*Bamboo poles
*Rattans
*Beeswax
*Jute ropes
*Brooms
*Dry food
*Coir & Coi-products
*Human hair
*Wood & timbers
*Copra wast
*Hukka nali
*Horns & hooves
*Molasses bh
*Petroleum by products
*Naphtha
*Furnace oil
*Bitumen
*Chemical products
*Glycerin
*Garment
*Pharmaceuticals
*Chemical fertilizer
*Cosmetics
*P.V.C. Pipe
*P.V.C. Bags
*Soap toilet
*Soap washing
*Newsprint
*Paper
*Rayen yarn
*Ceramic sanitary ware
*Insulator
*Polythene sheet
*Synthetic ropes
*Others
*Leather (Curst/Finished)
*Jute goods (all sorts)
*Jute yarn & twine
*Jute carpet (fiodi.com jute products supplyer)
*Jute manufactures
*Others
*Handicrafts
*Specialized textile & Household linen
*Terry towel
*Knit wear
*T. Shirts
*Sweater
*Others
*Ready-made Garments
*Shirts
*Trousers
*Jackets
*Others
*Engineering Products
*G.I. Pipe
*Iron Chain
*Cast Iron articles
*Electric Wires
*Telephone cables
*Coil assembly
*Generator
*Transformer
*Ro Ro ferry
*Fishing reel
*Others
*Electronics
*Computers
*Computers accessories
*Video/Audio cassette
*Radio & Radio recorder
*Television sets
*Indicator Lamp
*VCR/VCP
*Printed circuit board
*Integrated circuits
*Integrated circuits
*Others
*Others Mfd. products
*Zipper
*Melamine tableware’s
*Leather bags & purse
*Printed materials
*Stationery items
*Textile fabrics
*Aluminium household article
*Cigarettes
*Feature film
*Jewellery
*Biscuits
*Jamdani saree
*Circuit breakers
*Tents
*Footwear
*Tooth brush
*Camera parts
*Iland gloves (Leater)
*Artificial flowers
*Home Textiles
*Ceramic tableware
*Stainless steel wares
*Electric bulb
*Toys
*Ball pan
*Golf shaft
*Silk fabrics
*Other articles of leather
*Bi-cycle
*Gift items
*Accumulator battery & parts
*Lamp & light fittings
*Salted & dehydrated
*Animal casings
*Agricultural products
*Vegetables
*Fruits
*Cut flower
*Betel leaves
*Potato
*Dry fruits
*Bay leaves
*Rice
*Tobacco
*Raw cotton
*Cotton waste
*Black cumin seed
*Spices
*Others
*Tea
*In packet
*In bulk
*Crude fertilizer
*Raw jute (fiodi.com jute products supplyer)
*Tortoise & turtles
*Crabs
*Duck chest feather
*Aquarium fish
*Crude drugs
*Bamboo poles
*Rattans
*Beeswax
*Jute ropes
*Brooms
*Dry food
*Coir & Coi-products
*Human hair
*Wood & timbers
*Copra wast
*Hukka nali
*Horns & hooves
*Molasses bh
*Petroleum by products
*Naphtha
*Furnace oil
*Bitumen
*Chemical products
*Glycerin
*Garment
*Pharmaceuticals
*Chemical fertilizer
*Cosmetics
*P.V.C. Pipe
*P.V.C. Bags
*Soap toilet
*Soap washing
*Newsprint
*Paper
*Rayen yarn
*Ceramic sanitary ware
*Insulator
*Polythene sheet
*Synthetic ropes
*Others
*Leather (Curst/Finished)
*Jute goods (all sorts)
*Jute yarn & twine
*Jute carpet (fiodi.com jute products supplyer)
*Jute manufactures
*Others
*Handicrafts
*Specialized textile & Household linen
*Terry towel
*Knit wear
*T. Shirts
*Sweater
*Others
*Ready-made Garments
*Shirts
*Trousers
*Jackets
*Others
*Engineering Products
*G.I. Pipe
*Iron Chain
*Cast Iron articles
*Electric Wires
*Telephone cables
*Coil assembly
*Generator
*Transformer
*Ro Ro ferry
*Fishing reel
*Others
*Electronics
*Computers
*Computers accessories
*Video/Audio cassette
*Radio & Radio recorder
*Television sets
*Indicator Lamp
*VCR/VCP
*Printed circuit board
*Integrated circuits
*Integrated circuits
*Others
*Others Mfd. products
*Zipper
*Melamine tableware’s
*Leather bags & purse
*Printed materials
*Stationery items
*Textile fabrics
*Aluminium household article
*Cigarettes
*Feature film
*Jewellery
*Biscuits
*Jamdani saree
*Circuit breakers
*Tents
*Footwear
*Tooth brush
*Camera parts
*Iland gloves (Leater)
*Artificial flowers
*Home Textiles
*Ceramic tableware
*Stainless steel wares
*Electric bulb
*Toys
*Ball pan
*Golf shaft
*Silk fabrics
*Other articles of leather
*Bi-cycle
*Gift items
*Accumulator battery & parts
*Lamp & light fittings
There are many terms and abbreviation are available in export-import Business. Some most common abbreviation as follows:
1. TIN=Tax Identification Number.2. VAT= Value Added Tax
3. A.W.BILL= Air Way Bill
4. P.S.I.= pre Shipment Inspection
5. H.S. Code= Harmonized System Code
6. IRC= Import Registration Certificate
7. IP= Import Permit
8. L/C= Letter of Credit
9. L.C.A.= Letter of Credit Authorization
10.C/O= Country of Origin
11.EXP= Export Permit
12.B/E= Bill of Entry
Export-Import business is a self made profitable business most of the time if you can do the business. its kind of own start up business and make more self in dependency with financial solvency. Bangladesh is a potential country for export import business. Now how one can start Export-Import business from Bangladesh as follows.
Step-1:
Buyer and seller agreement/proforma invoice/sales invoice:
This document is needed at first step to do Export-Import business. Exporter will send this document (Buyer and seller agreement/proforma invoice/sales invoice) to Importer.
Step-2:
Application:
If i am an importer i have to give an application to my local bank. In this application here will be some documents and certificates and these documents are:
1.Agreement/proforma invoice
2.Application
3.Trade Licence
4.Tin
5.VAT
6.IRC
7.Insurance
8.Margin Money
Step-3:
If my local bank(example: Dutch Bangla Bank) accept the application they(Bank) will send the LC to Exporter's Bank.
Step-4:
Confirmed Letter of Credit:
A confirmation letter will go to the exporter's Bank that is exporter's local bank will confirm the exporter about the document.
Step-5:
Product is Shipped:
If supplier think that LC is perfect that time he/she will go for shipment.
Step-6:
Document:
Exporter/Supplier also have to give some document to his local bank that is exporter's bank. Common documents are:
1. Commercial invoice
2.Packing List
3.Certificate of Origin
4.Certificate of Analysis
5.Bill of Lading
6.Bill of Exchange
These are the documents that have to submit to the exporters bank account. If exporter don't submit these document that time exporter will not eligible for the payment so its important.
Step-7:
Document:
exporter's bank will send these document(step-6) to the importer's bank.
Step-8:
Document:
If we are importer we will provide all our documents that we will get from our bank to the C and F agent to have our products. C and F agent will solve all the procedure( custom and so on) after that.
Step-9:
Money:
After completing all the task importer's bank will send money to the exporters bank.
Step-10:
Money:
Exporter will get the money from his local nominated bank.
These are the procedure to do export-import business from Bangladesh. Whenever you will do practically you will be more clear. Best of luck.
Saturday, November 28, 2015
Method of calculation of CBM under LCL shipment
In this article let us learn Calculation of CBM under LCL sea shipment. Why to measure LCL shipment? How to calculate volume of cargo under sea LCL shipment? What is the importance of calculation of volume of cargo under LCL shipment?
Calculating volume of cargo is a common subject for all exporters and other shipping related companies. If cargo is Full Container Load (FCL), the freight charge is for full container load basis. But if the cargo is a Less Container Load (LCL), normally a freight forwarder charges freight on the basis of volume of cargo. A freight forwarder charges freight on the basis of CBM.
The method of calculation of volume of cargo under sea LCL shipment
CBM means Cubic Meter. However, the total weight of cargo should not exceed 1 ton. That means, if the cargo weight is above 1000kgs, the volume of cargo is treated on the basis of weight. In short, freight forwarders charges LCL rate on the basis of ‘per CBM’ or per weight of 1000kgs (1 ton) which ever is higher. CBM – cubic meter is calculated by multiplying length, width and height of packages of goods. For example, if the length, height and width of a cargo is 2.3 meters, 1.4meters and 2 meters respectively, the volume of cargo is 2.3 X 1.4 X 2.00 = 6.44 CBM. If you have the measurement in inches or centimeters, first you need to convert in meters and then calculate CBM which will be easier for you. If freight forwarder quote a rate of USD 10.00 per CBM, the rate will be 6.44 CBM X USD 10.00 per CBM = USD 64.40.
If the weight of the said package is 7 tons (7000kgs), the freight on LCL is calculated on the basis of weight. That is, 7 tons X USD 10.00 = USD 70.00. So, weight of 1 ton (1000kgs) is treated as 1cbm. In other words, the LCL freight is calculated on the volume of 1 CBM or weight of 1 ton (1000kgs) which ever is higher.
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