When you talk about the import and export business, it is highly important for you to know all the terminology and its exact meaning. While exporting goods to other countries via sea route you can export your shipments either by FCL (Full Container Load) or LCL (Less Container Load).
LCL shipment means shippers share the container(s) with other shipments and hence the exporter only need to pay for the space used. The exporter needs to know โ How to calculate CBM in LCL exports shipment? to derive the cost of LCL shipment.
Now you must be having 3 questions in your mind โ 1). What is CBM in LCL export shipment? and 2). CBM calculation for LCL export? In this article, we have solved all your queries related to โ CBM calculation for LCL shipments.
Table of Contents
What is CBM?
CBM stands for Cubic Metre, which is the freight volume of the shipment for both types of shipping domestic and international. And the calculation of M3 measurements by multiplying the width, its height, and length together for the shipment process.
Yes, I do understand that this may sound a bit complicated. But there are a lot of calculators available online which you can use to do the calculation of CBM. These online calculators help you by making this whole process quick and easy.
How to calculate CBM in LCL exports shipment?
Formula to Calculate CBM (Cubic Metre) for LCL
CBM = ( Length x Width x Height ) x quantity of items
For example, you have 10 Square boxes of 2 Meters. That means you will have an equal length on all sides. So your calculation will be like this
( 2 x 2 x 2 = 8mยณ ) x 10 = 80 mยณ.
This is just a hypothetical situation where your boxes are in squares and all of your boxes are similar in size and shape. But in the real world, your shipment may come in different sizes of boxes. This is how to calculate CBM in LCL exports shipment.
What is CBM in shipping Terms?
Even though the logic of CBM in shipping Terms is the same as the general logic. But when you use it for shipping purposes you have to understand a few things which are being used in the shipping business. These are very important things that will help you save money in international freight calculations.
Dimensional Weight:
Dimensional weight also known as volumetric weight is a unique way to create a hypothetical number that will represent your bulky but light shipments. Like a cargo of lightweight Balls, children play with.
It is very important for the carriers to know the whole dimensional weight. Because of these measurements, they calculate the chargeable weight so that you wonโt get charged the same for a box of balls similar to a box of bricks.
The formula for calculating Dimensional weight is CBM * DIM factor
Chargeable weight:
After having both of the figures i.e. gross weight and dimensional weight, the freight service provider will charge his service fee on the basis of whichever is the highest. This is called chargeable weight.
If the gross weight is higher than the dimensional weight of your shipment then your freight service provider will charge you on the basis of Gross weight. If your Dimensional weight is higher than the Gross weight then you will be charged on the basis of Dimensional weight.
How to calculate CBM in LCL exports?
The term LCL is used in sea shipping and stands as Less than a container load. LCL means your shipping load for cargo is not large enough to fill 20 feet or 40 feet cargo containers. As you know that this is only for sea shipping, on the land this is called LTL which stands for Less than Truckload.
People or businesses who do not have enough goods to fill a container complete will go for LCL. And then the carrier will book other small shipments to go in the container in order to save money.
All the LCL shipments are usually be charged by the Cubic Metre (CBM) system. As you know that LCL shipments are grouped with other cargo, which is why sometimes it is called groupage shipments.
It is the duty of the carrier to sort all the goods in a way so that they can be taken out at different ports.
Example of CBM calculation for LCL exports
For a shipment to qualify as an LCL export, the overall weight of your shipment should not exceed 1000 kgs. Because shipments above 1000 kgs are charged on the basis of weight. Because carrier charges on the basis of per CBM or weight above 1000 kgs.
In the last example of CBM, we assume that we have 10 square boxes of 2m height, length, and width each. Letโs continue with that and assume the carrier charges 100 rupees per CBM.
Which means 2 x 2 x 2 = 8 CBM and we have 10 boxed that means 8 x 10 = 80 CBM.
As you know the carrier charge 100 rupees per CBM that means 80 x 100 = 8,000 rupee charges for the whole shipment process.
