Transportation costs have always been a key element in logistics that joints the separated activities. 1. Transportation management is the backbone of the Supply Chain According to the statistics, transportation costs occupy one-third of the amount in the logistics costs and largely influences the performance of the logistics system. Transporting is inevitable to logistics as it required in the whole production procedures, from manufacturing to delivery to the final consumers and even returns. In today's economy, it is virtually impossible for a logistics firm to function without the help of transportation. In fact, the backbone of the entire supply chain in logistics is the transportation management that makes it possible to achieve the right product in the right quantity and the right condition, at the right place, at the right time, for the right customer at the right cost.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a>2. Components dependant on effective transportation When all the components of the logistics sector like production, storage, transportation, wholesaling, and retail sale are dependent on effective transportation, you might now fairly access what major influence does the transportation costs have on the logistics sector. It requires efficient planning of all these functions and sub-functions into a system of goods movement in order to minimize the costs and to maximize services to the customers. Production or manufacturing plants required the assembly of various materials, components which cannot be done without transportation. Warehousing or storage services between production plants and marketing outlets involve separate transport. Finally, the chain completes with merchandising the finished product or say the final delivery to the consumers which again cannot be brought into action without the help of transportation. So, all these developments majorly depend on better, effective and affordable transport services which ultimately reflects on the logistics costs and performance. 3. Transportation costs Talking about transportation costs, today it is the major concern of the logistics sector as well as the other companies as it constitutes to about 40-50 percent of the total logistics costs and 4 to 10 percent of the selling price of the final products. With this, it is pretty much clear that the transportation decisions directly affect the total logistics costs, and cost in other functional areas of the firm. Now, that we know about the major impact of transportation on logistics we should now think about effective ways to resolve the ever-increasing prices.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" width="auto" style="width: auto; height: auto;"></a>4. Things to finally pay attention to &nbsp; The logistics company should pay major attention to the transportation management which encompasses the day-to-day functions of the transportation process. Separate company personnel should be hired who have considerable knowledge about transportation pricing, services, and regulation, both domestic and international, to manage the transportation process and to operate the logistics system efficiently. With the growing digital market, integration of logistics and e-business is the future trend. The integration could help the companies reduce the middle-level procedures as the producers could immediately give the products over to the terminal customers. Companies then will not have to take the costs of inventory and warehouse, and therefore they could reduce expenses and also administer sources more efficiently. However the physical delivery still relies on the transportation system to finish the operations, but it still manages to cut down the costs from production to warehouse and warehouse to the final consumer.

Transportation Costs | A Key Factor in Logistics

Today, despite the known benefits to the supply chain industry, industry leaders have little information on how real-time freight cargo tracking and visibility can give them a competitive edge. The supply chain is becoming rapidly complicated, this is due to the growing competition, and trade volumes, which has changed the traditional mindsets to accommodate the demands. To tackle this, shipping and transport companies need to integrate a real-time freight visibility component in their systems enabling them to get insights into the status and location of the freight.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a>Let us discuss the reasons why freight visibility should be considered a top priority for the supply chain:1. Freight tracking is a business requirementThe market’s view on freight tracking has significantly evolved over the course of past years. Earlier, simple methods such as track-and-trace were considered to be adequate to get insights. Now, such simple methods are no longer sufficient, as the manufacturers, stockists and the shippers want transparency. This is because the consumers’ demands have increased significantly and they want timely delivery of their merchandise. Business owners require a single-point holistic information dashboard, which has certain status checks. This would include arrival and departure time, pick-up and destination location and a real-time concrete GPS-enabled system.2. Insights are cost-savingThe industry can reap multiple benefits from 100% freight visibility, as this enables them to adopt a more cost-efficient model. By using predictive analysis to manage shipments, the management can make more informed decisions, which in turn boosts productivity across the entire supply chain.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a>3. Late Shipments have consequencesA late shipment can have an unexpected ripple effect on the entire supply chain process. For example, a factory might have to halt or increase its production; or a retailer will have to manage with inventory shortage; a docking business might have to make its workers work on holidays or put in an overtime shift for when the shipment finally arrives. All of these situations can be avoided if there is a monitoring system in place that can provide timely updates on freight movement. This way all the parties involved can avoid hindrances in the supply chain.4. Competitive MarketplaceAn expanding and competitive market means that customers have more options than before. Customers expect shorter supply cycle and are less tolerant towards mistakes and delays. A report by Deloitte, a consulting firm, stated that sudden changes in demand by customers cause great disruption in the supply chain. To meet customer needs, businesses need a transparent supply chain which has a great flow of information. This will help develop consistency in identifying Stock Keeping Units (SKUs) and enforcing timelines.Therefore, a transparent freight process is required for effective compliance with the regulatory policy. The laws and regulations keep getting updated or changed, and if goods get stuck at some point in the process due to regulatory issues – it is waste of time, energy, and money.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">To sum up, analysis, information sharing, and decision-making along with freight visibility are essential to optimize the supply chain. This leads to lower chances of mistakes by eliminating inefficiencies and bottlenecks. This approach will not only better the supply chain today, but it will also enable the user to anticipate the future. This will improve demand forecasting, which lets the user know that when the demand is low or high. This results in faster delivery and less time taken to resolve issues.

Freight Tracking: Change in the Shipping Industry

In any kind of trade, especially international, the mode of transportation is an important factor. It influences not only the cost of the shipment but also the profit margin of the trader who has to pay for the transportation. Hence, it is necessary that the buyer and the seller pre-decide the mode of transport and factor in an estimated cost for the same in their trade contract.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a>To ensure that you and your business partner choose the right mode of transportation, it is important to take the following factors into consideration.Note: In international trade, specifically to and from India, air and sea are the main modes of transportation, hence in this article, we will be drawing a comparison only between these two modes.1. Cost of Transportation: As mentioned above, cost is one of the main factors in deciding the mode of transportation as it impacts the total cost of the shipment and the profit from trade. It is important to note that along with the actual freight charges, cost of transportation also includes transportation insurance, handling charges (at various points of loading and unloading), and cost of inland transportation (if applicable).&nbsp;So if we’re to go by this one factor, then sea transport which happens to be the cheapest mode of transportation, will be the ideal choice.For example: An exporter is supposed to export 20 tonnes of pomegranates to Malaysia. He is given a time of 25 days to complete the order. Given the perishable nature of cargo and the time stipulations, he thinks that it would be better and safer to use air transportation. So he decides to ship 1 tonne every day by the chosen airline. But, the estimated cost of the shipment ends up cutting into his profit margin, making air transport unfeasible.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" width="auto" style="width: auto; height: auto;"></a>He then explores the sea route, and finds that he can ship the complete quantity in one go from Mumbai, using a 20 TEU Reefer Container (refrigerated containers used for shipping perishable cargo), with a transit time of 10 days. The estimated cost by this method reduced by one-fifth of the estimate for air transportation.After going through the costing and other formalities for finalising the mode of transport, he informs the importer that he would be using sea transport for this shipment. The importer also agreed as it would save him the time and effort to go and collect one shipment every day.While in this case, sea transportation worked out and also turned out to be a feasible method, it may not always be the case.Cost is an important factor in deciding the mode of transportation, but it is not the only factor. There are other factors also that need to be looked at so as to choose the best mode of transportation for the goods that need to be transported. They are:2. Cost of Goods: Cost of the goods being transported is a also a deciding factor when selecting the mode of transportation. If the goods being transported are low-value goods then, it is preferable to go for sea transportation as it is the cheaper mode of transportation.3. Type of Goods: The weight and size of the cargo is also an important factor in selecting the type of transportation. If you’re dealing in heavy machinery, break bulk, dry bulk, machinery spare parts, marbles and stones, and other heavy material then it is preferable to go for sea transportation.If you’re trading in small but valuable low weight materials like gems and jewellery, medicines, other medical products and emergency supplies then air transportation is a safer option.4. Nature of Goods:&nbsp;When deciding the mode of transportation, it is necessary to take into consideration the nature of goods – time-sensitivity, perishable or non-perishable, hazardous or non-hazardous, and the transportation rules regarding these products in the trading countries.5. Importer’s Requisitions:&nbsp;As mentioned above, the mode of transportation, especially for goods that qualify for both the modes of transportation, should be decided in agreement with the importer so as to ensure that the trade is completed successfully.6. Urgency:&nbsp;There are some goods that simply cannot be transported by air. But, for goods that can be transported by either means of transportation, the urgency of requirement is another factor that comes into play while deciding the mode of transportation. Here, if the requirement is urgent, then air transportation is a better choice, and if there is ample lead time then sea transportation would be a better option. At times, especially in case of bulk orders, exporters can also look at splitting the cargo – they can send some quantity by air to ensure that the immediate requirement is met and the rest by sea.Sometimes it may happen that the cargo that you’re trading in will fall into more than one of the above categories. For example – the cargo can be perishable and bulky. Or it can be non-perishable, but time-sensitive.&nbsp;In such cases, for selecting the mode of transportation, it is always best to take into account the factor which could affect the saleability of the cargo or negligence of which could violate any clause or requirement of the contract because of which the importer may cancel the contract or refuse to take delivery of the cargo.To further guide you in choosing the right mode of transportation, here’s a brief snapshot of both the modes of transportation. Pick and Choose Wisely!<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/a7ccd6025bef0bb080f47df7e0db6883/Cogoport%20Article-02%20%281%29.jpg" alt="cargo" style="width: 967px; height: 2110px;"> When in doubt consult with your service providers (shipping line, forwarder, air line, ect.,) for feasible options! Or simply&nbsp;<a href="https://www.cogoport.com/signup" rel="noopener noreferrer" target="_blank">register</a> with Cogoport and get access to transparent and competitive spot rates for sea freight or speak to our customer service team to get the best feasible solution for your shipment.

Air or Ocean: Which is Best for Your Cargo Trade?

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<a href="https://cogoport.com/signup">Register</a>&nbsp;on Cogoport and get instant and transparent spot rates. Make shipping easy and cost effective for your company.
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10 Tips to Reduce Transportation Cost in Shipping

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Researching and negotiating for the best freight rates in the market can be quite a daunting and tedious task.&nbsp;<a href="https://cogoport.com/signup">Register</a>&nbsp;with Cogoport and reduce the time and effort in finding the best freight rate.&nbsp;&nbsp;
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Freight Charges that Determine Shipping Budget

We live in the age of instant gratification. Need lunch? Order takeaway. Like something on Facebook or Instagram? Shop online. Need to get somewhere fast? Call a cab. Almost everything we want is just a click away.But when it comes to shipping, many SMEs find that freight forwarders take hours or even days to send them freight quotes. All this while their customers wait and shipment dates are taken. Even when the quotes finally arrive, there is usually no transparency. SMEs have no way to ensure if they have been given the most cost-effective deal.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" alt="" width="300px">At Cogoport, we decided this had to change.We have improved our freight discovery tool to help SMEs find and compare freight rates from trusted and verified freight forwarders, instantly.Meet <a href="https://www.cogoport.com/en-IN/rate-discovery" target="_blank">Discover Rates</a> – our new and improved freight rates discovery tool.Here’s what it brings you:<ul><li>Fast and mobile-friendly search.</li><li>Instant results.</li><li>No unnecessary questions.</li><li>One screen view of all rates, including add-on services.</li></ul><h2>How Discover Rates is better</h2>1. All the information you need in seconds: Find and compare multiple freight rates from various port pairs across the world. That’s not all. Also get details about sailing dates, transhipment ports, estimated transit time, free days at the destination port, basic freight cost and total landed cost. You can now send freight quotes to your customer faster.&nbsp;2. All your logistics requirements in one place: You need a trucker? No Problem. Customs Clearance? Easy. Seeking Fumigation? We got it covered. Not just port-to-port, find quotes for all your logistics requirements using the ‘Discover Rates’ tool all in one go.&nbsp;3. Demand the rate you are looking for: If the rate quoted is too high or if you can’t find a quote that includes your preferred shipping line, don't worry. Use the 'Start Special Rate Request' option to send your requirements to over 600 service providers. You will be sent a personalised quote within six business hours.<h2>Customer driven improvements</h2>Cogoport held over 400 conversations with its customers before improving its freight rate discovery search based on their feedback.<blockquote>“I remember meeting an exporter in Kolkata who shipped textile products to Saudi Arabia. He completely relied on his freight service provider for quotes. He didn’t try to find out if it was more cost-effective for him to send his goods to Nhava Sheva near Mumbai via truck or train and then via container ship to Jeddah OR to ship the consignment directly from Kolkata port. I was shocked to see SMEs like him lacked complete visibility over their costs. I decided we needed a tool that was fast and transparent about costs.”</blockquote>–&nbsp;Nishant Dalmia, CTO Cogoport<h2>3 steps to Discover Rates</h2>Step 1: Enter the 'Origin Port' <img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5f89b7e809de143e38277804_Frame%203.png" alt="5f89b7e809de143e38277804_Frame%203.png">You don’t have to enter in the full name. Our intuitive drop-down list will offer you the most relevant suggestions.‍Step 2: Enter the ‘Destination Port'‍<img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5f89b7a1ccd03b4f7b490dd7_Frame%202.png" alt="5f89b7a1ccd03b4f7b490dd7_Frame%202.png" style="width: 968px; height: 528px;">You don’t have to enter in the full name. Our intuitive drop-down list will offer you the most relevant suggestions. Step 3: Enter container details such as container count, container size, container type, commodity, incoterm and cargo weight per container. Remember, these are mandatory steps. Then, click on the ‘Search Rates’ button.<img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5f89b74d0f6dbd8204fd9c68_Frame%201.png" alt="5f89b74d0f6dbd8204fd9c68_Frame%201.png"> ‘Discover Rates’ helps importers and exporters bring about efficiency in managing data, track real-time trends, and improve services. No matter where you are and where you want to send your goods; ‘Discover Rates’ will ensure you get the best rates.What are you waiting for?‍<a href="https://cogoport.com/signup/" rel="noopener noreferrer" target="_blank">Login to Cogoport</a> today and get your freight rates instantly.

Get Freight with Cogoport’s Discover Rates Tool

Thanksgiving is a typically American holiday. It’s not celebrated in Europe, but it does make you think of what you are thankful for. I’m thankful for the start Cogoport has had in Europe. Our office is in an inspiring location in the center of Rotterdam, a City which has welcomed us in a warm way. And it is great to be so close to the biggest container port in Europe, if optimizing global freight is one of your passions.I’m also thankful for the many interesting encounters with importers and exporters and hearing about their challenges and helping them optimize their freight through our platform.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a>The team in Europe is growing as well, with our latest addition: President of Supplier Relations &amp; International Growth, <a href="https://www.cogoport.com/en-IN/blogs/welcome-on-board" target="_blank">Flemming Frost</a>. Just last week we moved offices in the same location, to be able to accommodate our growth.So, while feeling thankful, I will move on to my highlights in Freight and Tech news of this week.<h2>Global Supply Chains</h2>“The global maritime industry is cautiously optimistic about the global business environment for world trade but also concerned about the potential impact of trade tensions, cybersecurity, fuel costs and other headwinds to industry recovery, according to a new survey.”→ Shipping Industry Optimistic But Concerned About Trade, Cyber Threats<h2>Ocean Freight Tariffs and Capacity</h2>“A.P. Moller - Maersk expects tariffs to take a bite out of the ocean shipping industry in 2019, according to executives on a recent earnings call.The carrier will meet this contraction by "rightsizing" its capacity on the Pacific routes out of the U.S. — a process that has already begun, according to Chief Commercial Officer Vincent Clerc, since West Coast ports are already forecasting a slowdown in the new year."As the tariffs start to come into effect in January, we are likely to see — we expect to see, a significant slowdown in demand of imports into the U.S. as a lot of customers have actually accelerated their purchase orders to get them into the U.S., before," said Clerc.”→ <a href="https://www.supplychaindive.com/news/maersk-tariffs-hit-hard-2019/542460/" target="_blank">Maersk planning for tariffs to hit hard in 2019</a>“IMO 2020 could be very helpful in terms of supply,” said McKinsey &amp; Co partner Steve Saxon.“If it leads to 12- to 15-year-old ships going to the scrappers instead of getting scrubbers installed – it could be the saviour for the industry’s supply and demand imbalance.”→ 2020 low sulphur regulations could be 'the saviour' of container shipping“Drewry has waded into the debate over the European Commission’s consultation on the block exemption afforded to container lines serving the EU, which is due to expire in April 2020.The consultant said it could see “validity in both points of view” – those for an extension of the block exemption, and those against – but said shippers should “not fear alliances”, which, it contended, had actually “aided competition during a period of market concentration”.”→ Drewry sides with those wanting extension to block exemption for joint liner services<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a><h2>Freight and Logistics Tech</h2>Rotterdam is one of the most innovative Ports in the world, nurturing and stimulating a lot of startups to investigate new technologies that could make port operations and shipping more efficient. Nice to see similar developments across the Channel.“A UK government-backed initiative to foster digital innovation across industry is looking to demonstrate the benefits of distributed ledger technology (DLT) in the shipping sector by 2020.The mostly widely known example of DLT is blockchain. However, it is not the only option, with at least two others available, including a system known as consensus, for closed computer networks, and another known as emergent consensus.”→ Whitehall backs move to bring distributed ledger technology to UK portsLike Cogoport is revolutionizing and simplifying shipping freight across the globe, other startups are using physical products like robots to revolutionize other parts of the supply chain. Warehouses, for example. And there is a cool video in the article below."Technology is revolutionizing supply chain," Jericho Zhang, executive director of Warburg Pincus, said in a release. "Geek+ is one of the leading technology companies that is able to combine robotics, big data, AI, and other cutting-edge technologies to solve the pain points of the traditional supply chain. As it accumulates more data, and continues to optimize algorithms and expand into other industries, we are confident that Geek+ will continue to lead the revolution and innovation in the space."→ <a href="https://www.dcvelocity.com/articles/30258-geek-lands-150-million-in-capital-for-warehouse-robots" target="_blank">Geek+ lands $150 million in capital for warehouse robots</a>

Ocean Freight & Logistics Tech Outlook

A Guide to Inland Logistics: Road, Rail and Barge

Six decades since its inception, container shipping today accounts for 60% of international maritime trade by value, or $12 trillion (as of 2017). It is an easy, safe and cost-effective solution for exporters and importers.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a>While it has simplified international trade, container shipping itself has become more complex to accommodate a wide range of goods being shipped across the world. As a result, exporters often struggle to find the right container for their goods. One reason for this is their overdependence on freight forwarders and customs house agents – intermediaries who specialise in making decisions for their clients. But an exporter who makes informed choices about his shipment on the basis of personal knowledge worries less about things going wrong. Choosing the correct container is just one of these important decisions.&nbsp;This blog aims to familiarise exporters with the world of containers and container shipping, and hopefully help them make the right choices. It will tackle the following subjects:<ul><li>What can go wrong by picking the wrong container</li><li>Types of containers used in container shipping</li><li>Standard container sizes</li><li>Freight weight, freight volume and how to calculate them</li><li>Load capacity and how to calculate it&nbsp;</li><li>Everything else to watch out for.</li></ul><h3>The Wrong Container Can Lead to a Sea of Problems</h3>Exporters risk damage to their cargo if the container is not the right fit or the right type. A lot can go wrong, such as:<ul><li>Containers being dropped during handling due to overweight or unevenly distributed cargo</li><li>Leaks, fires, temperature damage due to improper packing, stowage and miss-declaration of cargo. Improper packing and/or stowage accounts for 95% of cargo damage</li><li>Cargo contamination from container floor/pallet preservatives, wet surfaces, other cargo (for shared containers)</li><li>Cargo damage due to insect and vermin infestation.</li></ul><h3>Types of Containers Used in Container Shipping</h3>First, it is important to pick the right container type for your cargo. You have six options to choose from:<ul><li>Dry storage container: Made of aluminium or steel, it is used to ship dry freight. The most popular variety is either 20 feet or 40 feet long. It has doors on one side. Up to eight of these containers can be stacked one on top of the other&nbsp;</li><li>Flat rack container: With collapsible sides that fold, it is ideal for transporting cars and boats</li><li>Open side container: Can be opened completely on the side, allowing wider loading. Popular option for vegetables such as potatoes, onions</li><li>Open top container: Has no roof and is ideal for odd-sized goods such as machinery and logs</li><li>Refrigerated container: Also called a reefer, it is a cooling container with a generator and is used to transport food, flowers and pharmaceutical goods. Newer versions come with a carbon dioxide control system that keeps ripening food fresh&nbsp;</li><li>Tank: A cylindrical container designed to retain liquids, gases and powders. Carries both hazardous (oils, chemicals, fuels) and non-hazardous (wines, spirits, juices) products. There are various types of tank containers – baffle, lined, heated, refrigerated and gas tanks.</li></ul>Containers are also classified on the basis of whether they are fully used or shared:<ul><li>Full Container Load (FCL): This means a container is used for a single shipment. It is suitable for big businesses transporting goods in bulk. The advantage of an FCL container is that once it is loaded and sealed at the port of origin, it is opened only at the port of destination. This ensures faster delivery and more security for the goods being shipped.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li><li>Less-than-Container Load (LCL): This is suitable for transporting cargo in moderate volumes. Multiple exporters can share one container. It works out cheaper but delivery might be slower.</li></ul><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a><h3>Standardised Containers: One Size Doesn’t Fit All</h3>When the first containers were built in the 1950s, they were 33-35 feet in length. In 1961, the International Organisation for Standardization introduced standard-sized containers to make them compatible with different modes of transport (rail, sea and road). The most widely used are the 20-foot and 40-foot containers:<ul><li>20-foot container: Also called the Twenty-foot Equivalent Unit (TEU). Designed to carry heavy rather than voluminous cargo (minerals, paper, metals and machinery).&nbsp;&nbsp;&nbsp;</li><li>40-foot container: Also called 2 TEU. Designed to carry voluminous rather than heavy cargo (furniture, cotton, tobacco, steel pipes).</li><li>40-foot high cube container: The same as a 40-foot container but with an additional height of one foot.&nbsp;</li></ul><h3>How to Calculate Freight Weight and Freight Volume</h3>After selecting the right container type, the next step is to calculate freight weight and freight volume. The first is easy. Calculate the weight in kilograms or tons. As for freight volume, it is measured in cubic meter (CBM) and the formula is fairly simple:<h4>‍(Length x Width x Height) x Quantity</h4>So, if your cargo comprises identical boxes, it is the length x width x height of each box multiplied by the number of boxes. If the boxes are of different sizes, repeat the formula for each size and add up the volumes.Note: To calculate the CBM of cylindrical packages such as a rolled carpet, exporters must check if the ship squares the circle, which means the diameter becomes the width and height. If not, use the formula Pi x 2 (squared) x Height where pi is the ratio of the circumference to the diameter of a circle.There are numerous CBM calculators available online, that do the math for you if you fill in the required number fields.<h3>How to Determine Load Capacity‍</h3>Knowing your freight volume is necessary for figuring out how much space your cargo will occupy in a standard sized container. Here, it is important to understand that a container cannot be filled to its maximum capacity, and that its actual capacity is a little over 80% of its maximum capacity.&nbsp;<figure class="w-richtext-figure-type-image w-richtext-align-fullwidth" style="max-width:744px" data-rt-type="image" data-rt-align="fullwidth" data-rt-max-width="744px"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5f12dee2a5f32d6b549cfce3_Screenshot%202020-07-18%20at%205.05.26%20PM.png" alt="Load Capacity of various containers" width="auto" height="auto" loading="auto"></div></figure>(HC = high cube)* Measurements based on ideal conditions, could vary from operator to operator&nbsp; <h3>How to Pay for Your Container</h3>For FCL containers, you usually pay what is called a commodity box rate (CBR). The Business Dictionary defines CBR as “freight rate classified by commodity and quoted per container”.For LCL containers, freight is charged on the basis of volume or CBM, provided the freight weight does not exceed one ton. For cargo weighing more than one ton, freight is charged on the basis of CBM or weight, whichever is higher.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" alt="" width="300px"><h3>A Few Things to Keep in Mind</h3>That takes care of the heavy lifting. All that’s left now is to book the right container. But wait. There are still a few minor things to watch out for:<ul><li>Different shipping lines have their own weight limits. Be sure to check with them beforehand</li><li>Check what you are allowed to export. For instance, some destination countries might have banned certain goods from entering their soil&nbsp;</li><li>Pack and stow your cargo safely to avoid the problems listed above. Also make sure you declare your cargo accurately. You may be liable for any lapses</li><li>Get yourself a good freight forwarder and customs house agent. As professionals familiar with everyone in the shipping process, they can offer expert advice, get you the best offers and troubleshoot if glitches come up</li></ul><h3>We’re Here to Help</h3>At Cogoport, we’re here to make your shipping process as smooth as possible. Check out our online platform for a range of services, including:&nbsp;<ul><li>Instant freight quotes with our <a href="https://www.cogoport.com/blogs/get-instant-freight-quotes-online">Discover Rates</a> tool&nbsp;</li><li>Best <a href="https://www.cogoport.com/en-IN/product/logistics/cross-border/ocean-fcl">FCL shipping options</a> and instant container bookings</li><li><a href="https://www.cogoport.com/en-IN/product/logistics/cross-border/managed-supply-chain">Customs services</a> provided by experienced customs house agents</li><li><a href="https://www.cogoport.com/en-IN/knowledge-center/resources/shipping-terms/barge-169">Intermodal transportation</a> for door-to-door delivery</li></ul>

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