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Can broadly be divided into two main components; breakbulk and containerised.
Break bulk cargo calculations
Break bulk cargo, is cargo that is unitised, palletised or strapped. This cargo is measured along the greatest length, width and height of the entire shipment. The cargo is also weighed. Shipping lines quote break bulk cargo per "freight ton", which is either 1 metric ton or 1 cubic metre, which ever yields the greatest revenue.
Multiply the metres 2.5 X 1 X 2 = 5 metres Compare to the mass = 2 Mt.
Calculate the freight with the greater amount either the mass or the dimension. 5 X USD 110.00 = USD 550.00
Full Container load calculations and surcharges
Freight rates for containers are based on the container as a unit of freight irrespective of the commodity or commodities loaded therein, (FAK) Freight All Kinds. The shipping lines quote per box (container) either a six or twelve metre container.
· Bunker Adjustment Factor (BAF)
"Bunkers" is the generic name given to fuels and lubricants that provide energy to power ships.
Freight rate: US Dollar: 1 250.00 per 6-M container
+ BAF 5.2%
US Dollar 1 250.00 X 5.2% = US Dollar 65.00
Add the two amounts together
Freight rate: U S Dollar 1 315.00
Currency Adjustment Factor (CAF)
Freight rate: US Dollar: 1 250.00 per 6-M container
+ CAF 6.3%
War Surcharge
Freight rate: US Dollar: 1 250.00 per 6-M container
+ WAR 5%
Freight rate: US Dollar: 1 250.00 per 6-M container
+ BAF 5.2%
+ CAF 6.3%
+ WAR 5%
Miscellaneous
· Port Congestion Surcharge
· Consolidation services
The benefit for the exporter is that small quantities which, would not fill a full container load, can be shipped by sea freight in a shipping container as an alternative to air freighting the goods.