Calculating Your Freight Costs

When calculating your freight costs the first thing you have to know very clearly is what your terms of trade are. These terms of trade would often be based on INCOTERMS 2000, a trading terms standard administered by the International Chamber of Commerce. We can supply you with a copy of the book which we believe is essential for anyone involved in international trade. INCOTERMS will tell you what is meant by terms such as FOB, C&F, etc.

Freight is normally quoted on a port-to-port basis. In addition to the freight costs there are also charges related to moving the goods to and from the port, handling the cargo, port cost, documentation, finance etc. Our people will help you understand your obligations. You can ring them now on 02-9839-3100 or E-mail.

There are a couple of tricks you should be aware of:

Minimums Seafreight there is usually a minimum charge of between 0.5 and 1.5 freight tonnes. Airfreight there is usually a minimum charge of varying amounts which may convert to approximately 10-20 kg.

Volumetric Conversions Seafreight is normally quoted per cbm (cubic metre) or tonne, whichever the higher. What this means is that the size and weight of your consignment is considered when calculating freight, eg 1 cbm of feathers may weigh only 25 kg, but will be charged as 1 tonne (1 freight tonne) but 0.5 cbm of machinery may weigh 2 tonne and will be charged as 2 tonne.
Airfreight has a volume conversion of 6,000 cubic centimetres to 1 kilogram. Even though rates are quoted per kg you will still be charged extra for volumetric freight.

Collect Charges In some cases freight can be sent on a collect basis. You should be aware that this carries with it a cost. There is often a freight collect fee charged. Also, any freight paid at destination will be converted to local currency and an exchange hedge applied. This hedge varies considerably from destination to destination, and can vary from party to party. (Back to FAQ's)