"[The meaning, calculation method and causes of loss of freight (ocean freight LCL) detailed explanation
The meaning, calculation method and causes of LCL in ocean freight LCL
1. The meaning of ocean freight consolidation charges
What is LCL? LCL charges usually refers to LCL charges, also known as "empty space charges", "loss of warehouse charges", called Dead Freight in English.
Dead Freight refers to the sea freight LCL export business, near the time of loading (e.g. 1 working day before the cargo cut-off, different ports, different forwarders may require different cut-off time) due to the reasons of the consignor/consignor Shipper's goods can not be shipped in accordance with the scheduled shipment, resulting in the LCL forwarder can not be arranged to receive other consignor/consignor's goods to make up for the empty space, resulting in the container "not filled", and the cargo can not be loaded. As a result, the container is "not full" but the whole box cannot be cancelled, and the LCL forwarder will charge the consignor/client a certain amount of money to make up for the loss of empty space, which is the loss of space charge.
2. Why does a LCL forwarder charge a demurrage fee?
FCL forwarder can only book and operate according to the way of full container (FCL) to the shipping company, no matter whether the box is full or not, FCL forwarder has to pay the shipping company according to the price of the full container. In other words, the cost of FCL forwarder to pay to the shipping company is fixed. LCL freight forwarder collects small quantities of goods from multiple shippers/consignors Shipper and tries to fill up a container, the fuller the box is, the higher the profit of LCL freight forwarder is.
Due to the fierce competition in the freight forwarding market now, the profit margin is not high, generally need to fill the whole box to profit, if the reasons of the consignor/principal lead to vacant space, LCL forwarder is likely to produce losses or profits greatly reduced, LCL forwarder is likely to charge the loss of cabin fees.
3. How to calculate the LCL charge?
How much is LCL? How to calculate? Different consolidation forwarders may have different calculation standards.
(1) Simply according to the rate quoted to the customer.
For example, if you quote 50usd/cbm to your customer and the cargo is 5cbm, then: Loss of space charge = 50*5=250usd.
(2) According to the full load (standard cubic metres) to calculate
Loss of cabin charge = (full container shipping cost + full container port charges) / standard cubic number * loss of cargo billing party.
Standard cubic metres are generally: 25cbm/20GP; 50cbm/40GP; 60cbm/40HQ.
For example: the ocean freight of full container is 1000usd (freight cost paid by forwarder to shipping company), the harbour freight of full container is 500usd, the box type is 20GP, and the number of billable square metres of cargo in loss of space is 5CBM, then:
Loss of space charge = (1000+500)/25*5=300usd.
3) There is another calculation method
Loss of space fee = (full container cost / number of billing parties of goods in the cabinet) * number of billing parties of goods in loss of space.
For example: the cost of a full container 1500usd, the number of billing parties of the goods in the cabinet is 20cbm, the number of billing parties of the goods in the loss of space is 5cbm, then:
Loss cargo cost=1500/20*5=375usd.
The above three methods, the calculation results are not the same. Usually the first way to calculate the least loss of space charge, but few forwarders will charge loss of space charge according to the first method, unless it is a good co-operation with important customers, the forwarder may consider the first one, or even reduce the loss of space charge.
4. What are the reasons for loss of space charges?
How does loss of space charge arise? How to avoid demurrage? FJTD will explain for you.
1) Due to production, quality inspection, commodity inspection, logistics and other reasons, the warehouse is not in time.
Failure to catch up with the goods before the cut-off date. This is the most common situation, how to prevent?
The consignor/consignee should make careful arrangements in advance and closely track the whole process of shipment and arrival to ensure that the goods will be put into the warehouse on time and in time before the cut-off date. If you find that you really can't catch up, you should communicate with the LCL forwarder in time to see if you can let the forwarder extend the cut-off time, or directly arrange for postponement to the next ship.
(2) Customs inspection and release is not timely or not released.
This situation is very common, customs inspection can easily lead to failure to catch the ship, especially when the customs declaration is too late or there are problems with the goods. How to prevent?
Firstly, try to declare customs as early as possible, the earlier the better, in this case, in case of inspection, but also have enough time to arrange inspection.
Secondly, truthful declaration, standardised declaration, to do the same single goods, single single consistent, customs declaration documents should look more professional, formal and standardised, declaration elements should be clear and understandable. This can reduce the rate of customs inspection.
Third, in case of inspection, timely communication with the customs broker, close follow-up. If time is very tight, it should be processed urgently. In order to catch up with the ship, it is worthwhile even if some extra costs are incurred, because it is more costly to lose the cabin due to failure to catch up with the ship.
3) Cancellation of shipment without timely back booking of space
Due to the negligence of the consignor/consignee or forwarder, failure to return the booking of space in time, which should not happen. How to prevent?
If the consignor/consignee cancels the shipment, he/she should notify the LCL forwarder at the first time, so that they can cancel the booking, so that the forwarder can have enough time to find the goods to make up for the empty space. Consolidation forwarder can also adjust the container type, such as 40GP to 20GP, 40HQ to 40GP, etc., and can also find other customers or peers to try to prevent empty space.
(4) a large proportion of the shrinkage of the party, the party or overweight
"Shrinkage" may lead to waste of cabin space if the box is not filled up; "increase in square" may lead to unloading of goods; "overweight" may lead to waste of cabin space if the box is not filled up. How to prevent?
At the time of booking, the forwarder should carefully check the weight and size, and emphasise with the customer the importance and necessity of providing accurate cargo information. If you find that the actual situation of the goods and the customer entrusted information has a big difference, should be timely feedback, co-ordination and solution.
In practice, many people only notice the size (volume), in fact, the weight can not be ignored, because a container in addition to volume restrictions, there are also weight restrictions (generally not more than 26 tonnes)
(5) goods into the warehouse after the discovery of the goods themselves lead to problems that can not be transported
For example, oversized or overweight goods, certain liquids that can not be consolidated, semi-dangerous goods, perishable goods, and so on. How to prevent?
If the cargo is oversized, long, heavy, liquid, powder, chemical, food, semi-dangerous goods, dangerous goods and other "special" goods, you should confirm with the LCL forwarder in advance to see if it can be loaded according to the normal shipment of general cargo. Don't take a chance, tell the forwarder the real situation of the goods, "rushing cargo" may lead to serious consequences.
Of course, not all past the deadline for cancellation of shipment, or delivery late to catch up with the schedule, or customs inspection and other reasons for vacant space will be charged for loss of space.
Whether forwarder will charge loss of space charge or how much, customer can discuss with LCL forwarder and apply for not charging or less charging. The forwarder will take into account the importance and co-operation of the customer, as well as market conditions, profits and other factors, and exercise discretion. However, if the consignor/consignee can communicate well with the forwarder in advance, it is completely possible to avoid the loss of cabin charge.
How to calculate freight and what is the meaning of RT in 50usd/RT?
What is the meaning of RT in 50usd/RT? How to calculate the express shipping fee? How to calculate air freight? How to calculate the ocean freight rate for LCL?
1. What is the full name and meaning of RT?
RT is the abbreviation of Revenue Tons, which means Billable Tonnes, Billable Tons, Freight Tonnes, Freight Tonnes, and is a collective term for Weight Tonnes (W) and Size Tonnes (M). The "tonne" here is just a billing symbol, and this billable tonne/freight tonne is sometimes a unit of weight (for express and airfreight) and sometimes a unit of volume (for ocean freight). For example, Freight Charges 50usd/RT means that the freight rate for each billable tonne is $50. RT is very common among forwarders, especially for ocean LCL and breakbulk shipments.
2. How is RT calculated?
RT is usually calculated by comparing the Volumetric Weight (or Dimensions Weight) with the Gross Weight (G.W.) and charging the freight rate according to which one is bigger, which is common in express and airfreight, or comparing the Actual Volume with the Weighted Volume and charging the freight rate according to which one is bigger, which is common in oceanfreight.
Different modes of transport (express / air / sea) volume and weight of the calculation method is not the same. 3.
3. Calculation of express delivery charges
Express delivery is generally calculated as follows: volume weight = length * width * height / 5000, length, width and height of the unit are centimetres cm. such as length 80cm, width 50cm, height 60cm, gross weight of 45kg of a piece of goods, volume weight = 80 * 50 * 60 / 5000 = 48kg. Volume weight is greater than the gross weight, so according to the volume weight (48kg) billing. Note: Express general billing by weight, light foam goods into volume weight and then billing, and sea freight according to volume billing is not the same.
4. Calculation method of air freight
(2) the calculation method of air transport is generally: volume weight = length * width * height / 6000, length, width and height of the unit are cm cm. such as length 80cm, width 50cm, height 60cm, gross weight of 45kg of a piece of goods, volume weight = 80 * 50 * 60 / 6000 = 40kg. Volumetric weight is less than gross weight, so according to the gross weight (45kg) billing. Note: Air freight is generally billed according to the weight, light foam goods are converted into volume weight and then billed, and sea freight according to volume billing is not the same.
5. Calculation method of sea freight
There are many ways to calculate LCL freight, according to different shipping companies, different forwarders, different ports or different warehouses, the calculation standard may be different. The common ones are as follows:
1CBM=1000KG:
If the actual volume is 0.8CBM and the actual gross weight is 1200kg, the freight rate = 1200/1000*rate.
1CBM=750KG:
If the actual volume is 0.8CBM and the actual gross weight is 1200kg, then freight = 1200/750*rate.
1CBM=500KG:
If the actual volume is 0.8CBM and the actual gross weight is 1200kg, then freight = 1200/500*rate.
1CBM=363KG:
If the actual volume is 0.8CBM and the actual gross weight is 1200kg, then freight = 1200/363*rate.
Attention:
Ocean LCL (LCL) is generally billed according to the volume of heavy goods converted into volume (such as the above 1200/1000, 1200/750, 1200/500, 1200/363 is the weight according to different standards converted into volume) and then billed, which is not the same as the express and air freight according to the weight billing.
In summary, express and air transport: through conversion and comparison, according to the principle of "choosing the greater of the two", to determine the billing weight, and then multiply the billing weight by the rate, that is, the freight. Sea freight: through conversion and comparison, according to the principle of "choosing the greater of the two", determine the billable volume, and then multiply the billable volume by the rate, which is the freight cost.
There are different conversion standards for sea freight, which one should be used? This kind of question to ask the freight forwarder is good, the freight forwarder will tell you what the conversion standard is.
How does a freight forwarder calculate ocean freight for LCL or breakbulk?
Ocean freight (Ocean?Freight) is calculated according to the shipping company's tariff table. At present, the shipping company formulated and announced the freight table, its format and content is not exactly the same, but its basic content is basically the same.
First of all, the shipping lines' tariffs are generally divided into several classes according to the different types and natures of commodities, as well as the degree of difficulty of loading and storage. Within the same route, the basic rates (rates) charged by shipping companies are different due to the different classes of commodities. Therefore, there is a great relationship between the grade of the commodity and the rate.
Secondly, the calculation standard of freight is also different, for example, heavy cargoes are generally charged by weight tonnes of freight, light foam cargoes are charged by foot tonnes, some high-value commodities are charged by a certain percentage of the FOB value of the goods, and some commodities are charged in a mixed way, for example, they are charged by weight tonnes or foot tonnes first, and then a number of ad valorem freight rates are added, which are shown in the tariffs in the following main types:
(1) Ocean freight is charged according to the weight of the goods, indicated by W, W is Weight, indicating the weight, usually refers to the actual gross weight of the goods.
(2) Ocean freight is charged according to the volume of the goods, denoted by M, which means Measurement, indicating the size or volume. In practice, freight is charged according to the volume and weight of the goods. Volume is converted into weight by a certain coefficient, which is the volume weight.
(3) According to the cargo weight or volume of the higher of the two charged shipping freight, with "W / M", where W is Weight, M is Measurement, that is, W or M two comparisons, according to the greater sea freight charged. How to convert volume and weight? The volume is first converted into volume weight - that is, according to a certain conversion coefficient or formula, through the volume of the goods to calculate the weight, the calculated volume weight and the actual weight (Weight) comparison, according to the larger freight charges.
(4) Charged according to a certain percentage of the FOB value of the goods, expressed in Ad Val or A.V., Ad Val or A.V. is the abbreviation of Ad Valorem (ad valorem freight).
(5) According to the weight or volume of goods or the value of the higher of the three sea freight charges, with "W / M or Ad Val", W that is, Weight, M that is, Measurement, Ad Val that is the value of goods.
(6) There are also some commodities are charged by piece (per unit) or head (per head), the former such as vehicles, etc., the latter such as live animals. For bulk commodities, such as grain, ore, coal, etc., due to the larger volume, lower prices, easy to load and unload, etc., the shipping company in order to fight for the source of goods, can be agreed with the owner of a separate tariff.
Calculation of freight according to the tariff table is a complicated work, not only need to be familiar with the basic content of the tariff table, but also need to work carefully, in the calculation of freight, in addition to the routes and commodities in accordance with the level of the first basic rate (Basis Rate) calculated the basic freight, and then also to find out a variety of surcharges, and need to be spent on surcharge calculations.
There are many surcharges, for example, surcharges for different commodities, different ports, or other reasons, and it is important to keep track of the changes in these surcharges.
There are several types of shipping surcharges:
(1) Surcharges added due to different characteristics of commodities, such as overweight surcharge, over-length surcharge, cabin handling fee, cabin cleaning fee and so on.
(2) Surcharges added due to different ports, such as port congestion surcharge, port selection fee, direct shipping surcharge, round-trip surcharge, and so on.
(3) Surcharges added temporarily due to other reasons, such as fuel surcharge, currency depreciation surcharge, comprehensive rate increase surcharge, temporary risk surcharge, peak season surcharge, freezing surcharge and so on.
In fact, shipping surcharges are many and varied, far more than the above. It is worth noting that some surcharges, such as port congestion surcharge, account for a large proportion of the freight cost, which is as little as 10 per cent, or as much as 100 per cent, or even more than twice as much as the basic freight cost. Therefore, when calculating freight rates, attention must be paid to the calculation of surcharges to avoid unnecessary losses."
