Why do carriers balance weight and volume while charging freight amount in Exports?

 The information provided here is part of Online Export Import course 

 

 

Why do shipping carriers balance weight and volume when charging freight amount in Exports?


This article makes beginners learn about the reasons behind balancing weight and volume of goods in shipping.

Why do carriers balance weight and volume while charging freight amount in Exports copy

If you ship cargo by sea, your shipping carrier charges you on the basis of volume. If mode of transport is by air, shipper is charges on the basis of weight by shipping line.

 

Let me ask you now a question. Is carrier calculating freight amount only on the basis of volume in sea shipment and on the basis of weight under air shipment? No, Why?

 

 

A sea carrier quotes LCL (Less Container Load) charges on the basis of CBM (Cubic Meter). However there is a ceiling up to 1ton weight. Here, the sea freight forwarders charges sea freight on LCL on the basis of ‘per CBM’ or ‘per 1000kgs’ weight whichever is higher.

 

In turn, for any air carrier quote freight charges on the basis of weight or volume whichever is higher?

 

Why this clause implemented?

 

Let me explain with a simple example. Let us assume an exporter sells raw cotton and another exporter deals iron steel plates. As you know, the weight of raw cotton is too light and the weight of iron steel plates is too heavy. If an air carrier accepts cargo on weight basis without considering volume, the cotton exporter occupies maximum space of aircraft, as the weight of cargo is very less. If a sea freight forwarder accepts the shipments only on volume basis without considering weight, the exporter of iron steel plates gets maximum advantages. Am I right?

Also read - How to calculate CBM in LCL export shipments   How to calculate chargeable weight under airfreight in exports?

 

Have you satisfied with this article about calculation of airfreight and sea freight?

 

Would you like to share your experience about this subject – Reasons behind balancing of volume and weight?

 

The above information is a part of Export Import Online Tutorial


Write below your thoughts about balancing of weight and volume under calculation of airfreight and sea freight.

 

 

Other details on how to import export  

 

How to calculate chargeable weight for airfreight in exports? How to calculate weight for airfreight.

How to calculate CBM in LCL export shipments

What is consolidation of cargo What is LCL cargo less container load cargo

House Bill of Lading HBL and Master Bill of Lading MBL

Difference between Demurrage and Detention in import

What is Manifest Hold by US customs on import

Excise and Customs - Click here to read complete notification under Budget 2014

How to get Export Orders?

How to settle dispute in Exports and Imports?

Click here to know India Trade Classification(ITC)

Click here to know HS code of other product/commodity

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Types of export containers
Measurement of export containers
Export Import Policy of India 2015-20
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation

 
 

   

Common tips to importers of Sugars and Sugar Confectionery       
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Tips to importers of Bamboos,Rattans,Reeds,Rushes,pips,Betel leaves, Coconut shell, Rudraksha seeds           
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DRY CARGO CONTAINERS          
Conditions of Bank to provide Export Packing Credit to Sub-Suppliers       
Packing credit pre shipment finance to suppliers for exports through other export agencies          
Bank Running Account Facility for Exporters           
Negotiation procedures and formalities of export bills
Non receipt of Cargo Arrival Notice, Can importer sue against shipping company
OBJECTIVES OF CUSTOMS CONTROL for EXPORT GOODS

 

OBL not released OBL not surrendered no telex release
 Payment procedures in Triangular exports
Who is Stevedores
How to import Railway Locomotives,Track Fixtures and Fittings     
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How is assessable value calculated by customs for imports?

 

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 How to import Starches, Glues, Enzymes   
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 Mode of payments in international trade
OBJECTIVES OF CUSTOMS CONTROL for EXPORT GOODS
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 Multiple Country Textile Declaration
 Negotiation procedures and formalities of export bills
 Mode of transport under EX WORKS/FCA/CPT/CIP/DAT/DAP/DDP/FAS/FOB/CFR/CIF
 Material used for testing is eligible for Modvat
Letter of credit
 Maintain quality of goods - a prime factor in exports
Master collect House collect
 How does TT (Telegraphic Transfer) work?
Comparison between GOH container and normal dry container

Benefits of using OPEN SIDE CONTAINER           
 How to import Cotton inclusive of yarns and woven fabrics
Why does Palletization require?
Why demurrage/detention waiver period is required at destination for import
 Transferability of Bill of Lading





Comments


R surendhren: i would lyk to know export and import business ,becoz 'am very much interested to start own business. 'am only 22years old person so i dn't have any proper guidance .i request you ,pls give some ideas lyk 1) how to start Export & Import business 2) what is the legal procedure to start 3) what type of product to export is easily

Shari Larsen : I have 2 containers from Pakistan that arrived Seattle Port –I have paid for the merchandise to the shipper on DP –I have paid the freight to carrierI have paid duties to US CustomsI have surrender the OBL’s to the carrier –THE SHIPPER is holding the master bills of lading hostage because he has an issue with our buying agent in Pakistan – the issue he has with our BC Agent has nothing to do with Outrageous – but he will not surrender the Master Bills of Lading so the carrier will not allow freight forwarder to release to me.HOW is this right? The shipper is holding these Master Bills of Lading for ransom regarding business that has NOTHING to do with Outrageous Inc.

Manish: Best website i m reading related to Export and Import. Keep it up

Shashi Kul Bhushan: Please guide me how to calculate Air Freight of a solid goods (Cable) when i know only gross weight don't know volume weight.

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