How to Calculate Shipping Costs for International Freight
Step-by-step guide to calculating international shipping costs: CBM, chargeable weight, base rate, fuel surcharges, and local fees explained.
1. Measure your cargo (CBM)
The starting point for any freight quote is volume in cubic meters (CBM):CBM = L (m) × W (m) × H (m) × Qty. Use the CBM Calculator to compute it for one or many cartons in seconds. Carriers price ocean freight on the greater of actual volume vs. weight, so CBM directly drives the bill.
2. Calculate chargeable weight
For air freight (and many courier modes) carriers compare actual weight against volumetric (dimensional) weight and charge the higher one. The standard air formula is L × W × H (cm) / 6000 = kg. Run your dimensions through the Volumetric Weight Calculator to find the chargeable weight before requesting quotes.
3. Pick the right base rate
- FCL (Full Container Load): flat rate per 20ft, 40ft or 40HC container.
- LCL (Less than Container Load): rate per CBM (min. 1 CBM in most lanes).
- Air freight: rate per chargeable kg, with breakpoints at +45, +100, +300, +500, +1000 kg.
- Express courier: all-in per kg, billed on volumetric weight at /5000.
4. Add surcharges (BAF, CAF, fuel)
Ocean and air rates are quoted "base + surcharges". Common ones: BAF (bunker / fuel adjustment), CAF(currency adjustment), peak season surcharge, ISPS (security), and GRI (general rate increase). Surcharges can add 20–60% to the base, so always ask for an "all-in" quote.
5. Local charges at origin and destination
- Origin: pickup, export customs, terminal handling (THC), B/L fee.
- Destination: THC, import customs, ISF/AMS filing, delivery order, demurrage if cleared late.
- Door-to-door includes trucking on both ends; port-to-port does not.
6. Duties and taxes
Duties are calculated on the CIF value (cost + insurance + freight) using the HS code of your product. VAT/GST is then added on (CIF + duty). These are paid to the destination customs authority, not the freight forwarder — but they belong in your landed cost model.
7. Put it together: landed cost formula
Landed cost = Goods + Freight (base + surcharges) + Origin local + Destination local + Duty + VAT + Insurance
A quick rule of thumb for LCL ocean: budget $80–$180 per CBM all-in on most major lanes (door-to-port). For 20ft FCL on the same lanes: $1,500–$3,500 all-in depending on season. Use these only as a sanity check against your forwarder's quote.