1. Two Pricing Models for Sea Freight
Full Container Load (FCL)
Charged by the entire container, regardless of how much cargo is loaded inside.
Sea freight = Base Rate + Various Surcharges
Less than Container Load (LCL)
Charged by the Revenue Ton (RT)—the greater of weight or volume:
LCL freight = Rate × MAX(Weight (tons), Volume (CBM))
2. Spot Rate vs. Contract Rate
| Comparison | Spot Rate | Contract Rate |
|---|---|---|
| Definition | Real-time quote for current booking | Long-term freight contract (6 months to 1 year) |
| Advantages | Can seize low prices when market declines | Stable pricing, guaranteed space during peak seasons |
| Disadvantages | High price volatility when market rises | Requires Minimum Quantity Commitment (MQC) |
| Best For | Companies with unstable cargo volumes seeking pricing flexibility | Stable volumes >50 TEU per month |
3. Core Factors Affecting Sea Freight
| Factor | Impact | Explanation |
|---|---|---|
| Distance | Positive | Longer voyage, higher freight |
| Volume | Negative | Higher volume, lower unit price |
| Season | High in peak, low in off-peak | Peak season (Aug-Oct) sees 30%-50% increase |
| Fuel Price | Positive | Passed through via BAF |
| Supply & Demand | Decisive factor | Prices surge when space is tight |
| Carrier | Brand premium | Major carriers cost 5%-15% more than smaller ones |
Need to ship goods? Send the product name/weight/volume/destination port to Bofeng Logistics, and we will provide an ALL-IN rate—a fixed price with no hidden fees. 20 years of international shipping experience.
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