## Calculation of Basic Ocean freight under LCL shipment with example

Chargeable Volume under LCL (Less than Container Load) Shipment?

Basic Ocean Freight under LCL cargo is calculated on the basis of per CBM (Cubic Meter) rate or per Ton (per 1000 kgs gross weight) whichever is higher.

Or we can say basic ocean freight under LCL shipment is calculated on the basis of chargeable volume of cargo.

How to find chargeable volume of cargo?  Chargeable volume means total cubic meter volume of cargo or total gross weight in Tons whichever is higher.

XY Ltd. Company wants to send 8 parcels to New York from Chennai. Out of this 8 parcels, 3 of them got same dimensions as length 225cm, width 110cm and height 1.8m and also weights 600kg each. The other 5 parcels also have same dimensions like length is 180cm, width 145cm and height 2m. Each of the parcel weights 600kg. Find the total ocean freight that would cost to the XY Ltd. Company if freight is charged as \$35/cbm.

Solution

3 parcels with same dimensions and weight,

Length             -    225cm   (2.25m)

Width             -    110cm   (1.1m)

Height             -        1.8m

Weight           -   600kg

Parcels, n       -       3

Volume           -    2.25*1.1*1.8         =   4.455

è               4.455*3           =    13.365cbm

è Total weight, 600*3    =   1800 kg

5 parcels with same dimension and weight

Length            -    180cm   (1.8m)

Width             -    145cm   (1.45m)

Height             -     2m

Weight            -   600kg

Parcels, n        -    5

Volume           -     1.8*1.45*2         =   5.22

5.22*5                 =   26.1cbm

Total weight, 6000*5       =  30000kg

Total Volume of 8 parcels    =    13.365 + 26.1

= 39.465cbm

Total Weight of 8 parcels    =    1800 + 30000 =   31800

=    31.8cbm (since 1000kg = 1 cbm)

Basic Ocean Freight under LCL cargo is calculated on the basis of per CBM (Cubic Meter) rate or per Ton (per 1000 kg’s gross weight) whichever is higher.

Here,        31.8 < 39.465 (gross volume is selected since it is higher)

39.465*35    =     1381.275

Total ocean freight would cost to the company is \$1381.275