Thursday, September 6, 2012

Freight Cost and Container Details

Dear All
Nowadays most of the garment order we do on FOB basis, so the buyers pay the freight to the shipping agent or freight forwarder. However, still it is necessary for the us to know how to calculate sea freight and air freight cost. 


Actually many buyers are still placing their order on CIF basis to us. In this case the shipper to prepay freight. So, we need to learn all the details regarding the Freight charge, Containers details, Customs clearance cost and others shipping terms.

Mainly we delivery the goods to buyer by 03 (three) ways.

1. By SEA
2. By AIR
3. By Road

Out of these 03 ways mostly we prefer delivery the goods by Sea, because it's cheaper than Air and Road transportation. Today I will discuss with all of you regarding SEA delivery.
 
SEA FREIGHT:

Generally sea Freight varies based on volume of the goods. Mostly it calculated on how much per CBM (Cubic meter). However, very rarely we calculated it by weight as “density cargo”. 



ANERA (A.N .E.R.A. Asia North America Eastbound Rate Agreement) has designed the freight tariff based on the usual value of the type of goods, than the usual weight of them, taking into consideration that for low value goods they should give a low freight rate in order to make it possible for the importers to buy goods overseas . However, for high value products, they should charge a higher freight rate as it is believed that the buyer can afford to pay more for freight. They have designed the freight tariff in such a way that everybody can do business and there is sufficient profit for the shipping lines. Please find below an example for your better understanding


For low value goods
Suppose, for a Furniture company the ocean friegh rate will be
US $1,400.00 for a 20' container to Valencia, Spain.

For medium value goods
Garments Item with normal fabrication (not expensive as silk chiffon etc) (medium value goods)
US $2,295.00 for a 20'container to Valencia, Spain.

For High value goods
Silk Garments ( Expensive items)
US $2,800.00 for a 20' container to Valencia, Spain. 


From the above example we understand that for the same 20' Container the shipping line charges very different rates.





However, at present it is very common to ship goods by containers and pay the freight for the full container, even if you sometime do not have the enough goods to fill up the whole container. The reason for this is


Example:


(Below are just an example, this example are not the exact freight rates as they change from time to time, but this is the concept commonly used)


Say, you are planning to ship the goods to European port by the CBM as loose cargo then the shipping line will charged you US $65.00 per CBM. In this regards please note that, we call the loose cargo shipment as LCL (Light Container Load) shipment.


But, if you intend to ship the same goods by the (full) container, they charge you about US $1,400.00 per 20' container. That’s mean in this full container case you will pay only US $47.50 per CBM where as for LCL cargo you should need to pay $17.5 extra/CBM .


These are approximate rates for shipment from Bangladesh to European ports, but they vary from each of the South East countries and to East or west coasts of the European ports. Hope, the above example can give you idea regarding the general relationship between the rates of loose cargo, 20' and 40' containers.


Container Details

20' Standard Containers


A 20’ Container has the following inside measurements:

Length: 228" X Width: 84" X Height: 94”

= 228" X 84" X 94” by multiplying 2.54 (1” =2.54cm)


= 579.12cm X 213.36cm X 238.76cm by dividing 100(1m = 100cm)


= 5.7912m X 2.336m X 2.3876 m

= 29.50 CBM


A 20' container has an air capacity of 29.50 CBM, but when you ship goods packed in cartons or wooden crates, it can only hold about 27 CBM as there will be gaps or spaces wasted. So, if the rate of a 20' container is $ 1,400.00 your average rate per CBM will be about $ 47.50 That’s mean you are paying cost of 29.5 CBM for 27 CBM.



Above is the inside dimension but 20’ container means 20’ X 7’ X 8’

40' Standard Containers

A 40' container has the following inside measurements:

Length: 474" X Width: 84" X Height 94"

474” X 84” X 94" by multiplying 2.54 ( 1 ” =2.54cm)

 

1203.96cm X 213.36cm X 238.76cm by dividing 100(1m = 100cm)

12.0396m X 2.1336m X 2.3876m


= 61.33 CBM.


40' container which means 40' X 7’ X 8’ but this is the inside dimension of the container. Therefore, a 40' container has an air capacity of 61.33 CBM. But, when we ship the goods by packed cartons or wooden crates, it will hold only about 54 CBM. So, if the rate of the 40' container is $2,650.00 the average rate per CBM is about $43.50


Please be informed that there is a bigger container than the 40' High Cube. 

The inside Measurements of this 40' high cube container are:

Length : 474" X Width : 84" X Height: 106" (12" higher)

474" X 84” X 106" by multiplying 2.54 ( 1 ” =2.54cm)

1203.96cm X 213.36 cm X 269.24cm by dividing 100 (1m = 100cm)

12.0396m X 2.1336m X 2.6924m

= 69.16 CBM 



40’ high cube container which means 40’ X 7’ X 9’ but above is inside dimension.

A 40’ Hi Cube container is about 10 to 12% higher a 40’ regular container, and the cost of a 40’ Hi Cube is about 10 to12% higher, so the rate per CBM is about the same . There is very little , or on advantage in using a 40' Hi Cube as the rate per CBM is concerned. However, there is a great advantage when you have the amount of cargo which exceeds the capacity of a 40' container only by 5 to 8 CBM.



Please find below the list (collected from web) of some types of Containers


45’ High Cube Dry Containers

Interior Dimensions
Door Opening
Tare Weight
Payload
Cubic Capacity
L:
13.556 m
44'5 11/16"



4,590 kg
27,910 kg
86.0 cbm
W:
2.352 m
7'8 9/16"
W:
2.340 m
7'8 11/16"
10,118 lbs
61,529 lbs
3.031 cu. ft.
H:
2.695 m
8'10 1/16"
H:
2.579 m
8'5 1/2"







45’ High-Cube Reefer Container

Interior Dimensions
Door Openin
g
Tare Weight
Payload
Cubic Capacity
L:
13.102 m
42'11 3/4"



5,200 kg
27,300 kg
75.4 cbm.
W:
2.286 m
7 6"
W:
2.294 m
7'6 1/4"
11,463 lbs
60,184 lbs
2,663 cu.ft.
H:
2.509 m
8'2 3/4"
H:
2.535 m
8'3 3/4"




40’ High Cube Dry Containers

Interior Dimensions
Door Opening
Tare Weight
Payload
Cubic Capacity
L:
12.030 m
39'5 9/16"



3,930 kg
28,570 kg
76.0 cbm.
W:
2.350 m
7'8 1/2"
W:
2.340 m
7'8 1/16"
8,663 lbs
62,984 lbs
2,714 cu.ft.
H:
2.690 m
8'9 7/8"
H:
2.579 m
8
'5 1/2"





40’ Standard Dry Container

Interior Dimensions
Door Opening
Tare Weight
Payload
Cubic Capacity
L:
12.035 m
39'5 13/16"



3,700 kg
28,800 kg
67.0 cbm.
W:
2.350 m
7'8 1/2"
W:
2.339 m
7'8 1/16"
8,156 lbs
63,491 lbs
2,393 cu.ft.
H:
2.393 m
7'10 3/16"
H:
2.274
m
7'5 1/2"




40’ Open Top Container
Interior Dimensions
Door Opening
Tare Weight
Payload
Cubic Capacity
L:
12.043 m
39'6"
 L:
11.858 m
38"
4,300 kg
28,280 kg
64.0 cbm.
W:
2.338 m
7'8"
W:
2.162 m
7'1"
9,480 lbs
62,344 lbs
2,260 cu.ft.
H:
2.272 m
7'5 1/4"







40 High-Cube Reefer Container

Interior Dimensions
Door Opening
Tare Weight
Pay
load
Cubic Capacity
L:
11.577 m
37'11 3/4"



4,150 kg
28,350 kg
67.0 cbm.
W:
2.294 m
7'6 1/4"
W:
2.290 m
7'6 1/8"
9,148 lbs
62,499 lbs
2,366 cu.ft.
H:
2.509 m
8'2 3/4"
H:
2.535 m
8'
3 3/4"





40’ Standard Reefer Container

Interior Dimensions
Door Opening
Tare Weight
Payload
Cubic Capacity
L:
11.577 m
37'11 3/4"



3,950 kg
7,910 kg
58.7 cbm.
W:
2.294 m
7'6 1/4"
W:
2.286 m
7'6"
8,708 lbs
61,529 lbs
2,073 cu.ft.
H:
2.210 m
7'3"
H:
2.238 m
7'4 1/1
6"





40’ Flat Rack Container

Interior Dimensions
Door Opening
Tare Weig
ht
P
ayload
Cubic Capacity
L:
12.080 m
39'7 9/16"



5,480 kg
25,000 kg

W:
2.420 m
7'11 1/4"



12,080 lbs
55,113 lbs

H:
2.103 m
6'10 13/16"








20’ High Cube Dry Containers
Interior Dimensions
Door Opening
Tare Weight
Payload
Cubic Capacity
L:
5.919 m
19'5"



1,900 kg
24,800 kg
33.0 cbm.
W:
2.340 m
7'8 1/16"
W:
2.286 m
7'6"
4,189 lbs
54,673 lbs
1,179 cu.ft.
H:
2.286 m
7'6"
H:
2.251 m
7'4 9/16"





20’ Standard Dry Container

Interior Dimensions
Door Opening
Tare W
eight
Payload
Cubic Capacity
L:
5.440 m
17'10 3/16"



2,750 kg
24,250 kg
27.9 cbm.
W:
2.294 m
7'6 1/4"
W:
2.286 m
7'6"
6,062 lbs
53,460 lbs
986 cu.ft.
H:
2.237 m
7'4 1/16"
H:
2.238 m
7'4 1/16"





20’ Open Top Container
Interior Dimensions
Door Opening
Tare Weight
Payload
Cubic Capacity
L:
5.919 m
19'5"
 L:
5.425 m
17'9 9/16"
2,177 kg
21,823 kg
32.0 cbm.
W:
2.340 m
7'8 1/16"
W:
2.223 m
7'3 1/2"
4,799 lbs
48,110 lbs
1,143 cu.ft.
H:
2.286 m
7'6"








2
0’ Flat Rack Container
Interior Dimensions
Door Opening
Tare Weight
Payload
Cubic Capacity
L:
5.935 m
19'5 5/8"



2,560 kg
21,440 kg

W:
2.398 m
7'10 3/8"



5,643 lbs
47,265 lbs

H:
2.327 m
7'7 9/16"








If you found some data regarding the container measurement in this post which is conflicting with each other. In this case I advise you, please contact directly with the shipping line.

Thanks and best regards
Bipul

06.09.2012 

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