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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.
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?
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