Detailed explanation of overseas liner shipping freight charging standards and calculation methods

In overseas liner shipping, freight calculation is a complex but important process. This is mainly achieved through billing standards and billing methods. These contents will be discussed in detail below to help relevant practitioners better understand the entire process.

1. Freight billing standards

The freight charging standard refers to the unit used in calculating freight, which usually includes volume, weight, and specific billing methods for certain goods. Depending on the type of goods, the shipping company will clearly stipulate the charging standards in the freight rate list. Common charging symbols include:

1. W: Charges are based on the gross weight of the product. Usually defined as cargo weighing less than 40 cubic feet or 1 cubic meter.
2. M: Billed by size or volume. Suitable for light cargo weighing more than 40 cubic feet or 1 cubic meter.
3. W/M: Charges are calculated based on gross weight and volume respectively. Choose the one with higher shipping cost.
4. Ad.Val.: Calculate freight as a percentage of the FOB price.
5. Ad. Val. Or W/M: Choose a higher freight calculated based on a certain percentage of the FOB price and gross weight and volume.

2. Composition of freight

Liner freight usually consists of two parts: basic freight and surcharge. The details are as follows:

• Basic freight rate: It is a freight rate set based on transportation between basic ports and is applicable to all goods.

• Surcharges: Flexible increases based on transportation conditions. Common surcharges include overweight, over-length, direct shipping, transhipment, port and fuel surcharges, etc. Details of these surcharges are as follows:

  • Overweight, overlength and overhigh surcharges: If the goods exceed a certain standard, corresponding surcharges will be charged.
  • Direct shipping surcharge: When the shipper requires the goods to be shipped directly from the loading port to a non-base port.
  • Transhipment surcharge: When it is necessary to change ships midway to deliver goods.
  • Port surcharge: An additional fee due to port congestion or inefficiency.
  • Fuel surcharge: used to compensate for increased costs caused by rising market fuel prices.

3. Calculation method of freight

It is important to understand how freight is calculated, here are the basic steps for calculating grocery liner freight:

1. Determine the route between the loading port and the destination port and whether it is a basic port;
2. Determine the type of goods (general or special);
3. Check the graded freight rates;
4. Obtain the basic freight rate from the route rate table;
5. Check the charging methods and rates of various surcharges;
6. Conduct detailed cost calculations.

The basic calculation formula for freight is:

[
F = F_b + sum S
]

Among them, (F) is the total freight, (F_b) is the basic freight, and (sum S) represents the total surcharge.

If the surcharge is calculated as a percentage of the basic freight, the total surcharge can be expressed as:

[
sum S = (S_1 + S_2 + ldots + S_n) F_b
]

If calculated based on the surcharge per billable ton, the surcharge is:

[
sum S = (S_1 + S_2 + ldots + S_n) times Q
]

With the above information, practitioners can accurately understand and calculate freight costs in overseas liner transportation, thereby managing logistics costs more effectively and improving transportation management efficiency.