What is CBM and How to Calculate it in Sea Shipping?

As you know, the transportation cost is a significant portion of the final price of products. This is especially important when you want to import from China. This cost is strongly dependent on the volume of your cargo and the space it occupies in the ship.

So you have to learn how to calculate the volume of your freight to estimate the cost of transportation.

In this article, we’ll introduce CBM Calculation Sea Shipping as an important concept in sea shipping. Then, you’ll learn how to calculate CBM Calculation Sea Shipping.

After reading this article, you’ll know how to optimize your cargo to reduce the transportation cost. You can also ask any other questions regarding importing from China from our team at DDPCH.

Understanding CBM: A Beginner’s Guide

First, let’s see what exactly CBM is and why it is important in international trade.

What is CBM in Shipping?

CBM stands for Cubic Meter. It’s a simple mathematical concept but fundamental in shipping and logistics!

CBM is actually the volume of your cargo and is a key factor in the cost of transportation in international trade. As a simple rule, the bigger the volume of your freight is, the higher the cost of transportation will be.

CBM is calculated using the dimensions of your shipment. In fact, length, width, and height determine the CBM of your freight and the cost of transportation.

If you understand CBM, you can optimize your shipping processes and reduce costs.

Why CBM Matters: Its Impact on Shipping Costs

As said earlier, CBM directly influences shipping costs, especially in ocean freight. Carriers determine freight rates according to the volume of the cargo because larger shipments need more space.

Estimating the exact amount of CBM will help both importers and shipping companies. Using an exact estimation of CBM, they can anticipate costs and make informed decisions accordingly.

How CBM Affects Freight Rates

As we mentioned earlier, there is a direct relationship between CBM and freight rates. Of course, higher CBM values result in less space for other products. So carriers do not have any choice but to calculate freight rates based on the volume of your cargo.

It should be noted that CBM affects the volumetric weight of your freight which might not be equal to the actual weight of your cargo. 

In ocean freight, they often calculate the cost based on the maximum value between the actual weight and the volumetric weight which is calculated based on CBM.

The following table shows how CBM can affect the cost of transportation in sea freight and air freight:

As you can see, the cost of transportation will increase when CBM increases. Also, the transportation cost of air freight is significantly higher than that of sea freight.

The Role of CBM in Container Loading

The CBM of your product affects the container capacity. If you know the CBM and optimize space utilization in each container, you can significantly reduce shipping costs.

By understanding the CBM of shipments, it’s possible to minimize the waste space and load more products on the ship.

So remember that proper container loading plays a key role in reducing transportation costs.

The following table shows the maximum CBM of each type of container:

This table gives you a general understanding of how different containers can be used to have efficient shipping.

How to Calculate CBM

Although CBM is an essential factor in the cost of your importing business, calculating it is straightforward.

The CBM Formula: A Simple Breakdown

Calculating the CBM of your cargo is not difficult. You can easily calculate the volume of your freight using the following formula:

CMB (m3) = Width (m) Length (m) Height (m)

Remember that all the components (length, width, height) should be measured in the same unit (metric or imperial.)

Calculating CBM: Step-by-Step Guide

To measure cargo dimensions accurately and calculate CBM:

1. Measure the dimensions of your boxes: Make sure you’re considering the size of each box after packaging.

2. Convert to meters: Make sure that the unit is what you want.

3. Apply the formula: Multiply the length, width, and height to find the CBM.

Now it’s good to multiply the result of the previous step by the number of boxes to have the total volume of your cargo.

Example of CBM Calculation: Metric Units

Here is an example of calculating the CBM of a package in metric units:

• Length: 2 meters
• Width: 1 meter
• Height: 1.5 meters
• CBM = 2 x 1 x 1.5 = 3 cubic meters

Example of CBM Calculation: Imperial Units

You can convert the units to meters before applying the formula. Remember this formula to convert from imperial units to metric units: 1 inch = 0.0254 meters and 1 foot = 0.3048 meters.

Here is an example in imperial units:

• Length: 80 inches (80 x 0.0254 = 2.032 meters)
• Width: 40 inches (40 x 0.0254 = 1.016 meters)
• Height: 60 inches (60 x 0.0254 = 1.524 meters)
• CBM = 2.032 x 1.016 x 1.524 = 3.15 cubic meters

Optimizing Your Shipment with CBM

Here are some strategies to reduce the cost of shipping by optimizing CBM:

Tips for Accurate CBM Measurement

Accurate CBM (Cubic Meter) measurement is crucial for logistics, shipping, and storage efficiency. Here are several tips to ensure accurate CBM measurement:

1. Understand the Formula: CBM = L*W*H

2. Use Appropriate Tools: Use accurate measuring tools such as tape measures or even laser distance meters.

3. Measure the Largest Points: Try to cover the maximum length, width, and height of the item, including any irregularities.

4. Round-Up Measurements: You have to round up your measurements to avoid underestimating.

5. Account for Pallets: If you want to place your items on pallets, you have to include the size of the pallets in your CBM calculations.

Last but not least, do not forget to double-check to make sure everything is OK.

Common Measurement Mistakes and How to Avoid Them

Here are also some common cargo measurement mistakes you need to avoid:

1. Forgetting the size of the packaging: Do not forget the packaging when measuring the size.

2. Not measuring all items: If you’re dealing with multiple items, do not forget to measure all of them separately.

3. Not accounting for tolerances: Pay attention to the tolerance range of your measuring tool.

4. Parallax Error: When you look at the measurement from an angle rather than straight on, you might make a great mistake.

5. Incorrect zero point: Start measurement from the correct point.

Packaging Strategies to Reduce CBM

Effective packaging techniques and materials can reduce the overall CBM of your cargo. Here are some methods for CBM reduction.

Choosing the Right Packaging Materials

Apart from the packing technique, the material of your packages is important. You have to choose materials that protect your products while minimizing volume. For example, use lightweight, strong materials to increase the weight and volume of the cargo.

Efficient Packing Techniques

An efficient packing technique minimizes wasted space in the container. Packaging optimization methods like stacking items tightly and using padding sparingly can reduce the space required for your cargo.

Maximizing Container Space: Loading Tips

Here are some container loading tips to maximize the space:

1. Plan Ahead
2. Use Uniform Packing
3. Stack Strategically
4. Fill all the Gaps
5. Utilize Vertical Space
6. Load in Tiers
7. Use Palletization
8. Optimize Pallet Configuration
9. Consider Load Bearing
10. Secure the Load
11. Label Clearly
12. Use Load Distribution Software
13. Utilize Load Bars and Straps
14. Avoid Overloading
15. Train Staff

CBM and Your Bottom Line

Understanding and optimizing CBM significantly impacts a business’s shipping costs and profitability. By effectively managing CBM, businesses can reduce their logistics costs, improve operational efficiency, and enhance customer satisfaction.

How CBM Impacts Shipping Costs

Now, let’s talk about the relationship between CBM and the profitability of shipping. Remember that if you reduce the CBM of your shipment by just 0.5 cubic meters, it can save your business hundreds of dollars each year.

Case Study: Real-World Examples of CBM Savings

Here are some examples of using optimization strategies to reduce the shipping cost:

1. Maersk Line and CMA CGM: These companies used CBM reduction strategies for their operations. The result was great and they reached significant gains, improved safety, and savings on shipping costs. One of their strategies was to allow the customer to move small quantities of a large number of items. They reached predictable lead times without multiplying transport costs.

2. Deere & Company: They began optimizing shipments and using break-bulk terminals during the seasonal peak. As a result, they achieved a significant reduction in annual transportation costs of around 5%.

The following table shows the potential cost savings you can achieve by reducing CBM:

Conclusion

CBM might be a simple mathematical concept but it has a great impact on shipping costs. If you master CBM reduction strategies, you can save thousands of dollars each year and outperform your competitors. Remember that if you estimate CBM with inaccuracies, you might face great financial losses. DDPCH is here to help you in calculating CBM and have a smooth importing from China. So why wait? Contact us right now!

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