Cubic Meter CBM is essential in determining the space required for a shipment to fit in a vehicle, such as a truck, ship, or plane. The CBM is crucial in maintaining efficient container utilization, optimized logistics planning, and cost calculations, particularly when dealing with goods that occupy a significant space in relation to their weight. This allows businesses in India to maximize container space and minimize shipping expenses. This article contains comprehensive information on what CBM is, how it affects shipping costs, and its calculations for further understanding.
What is CBM in Shipping?
The CBM(Cubic Meter) is the standard measurement unit used to check the cargo volume to indicate the amount of space a shipment occupies in a container. It is calculated by multiplying the cargo's length, width, and height in meters. It is essential to determine shipping costs concerning the space occupied rather than just the weight alone. CBM facilitates better decision-making in cargo transportation in India.
How Does CBM Affect Shipping Costs?
The CBM greatly impacts shipping costs by determining cargo volume; the larger the volume, the higher the shipping cost for your shipment. If the amount of space the goods occupy is a lot, you will be charged as per the CBM measurement, regardless of the actual weight. Understanding what CBM is and its implications for shipping costs facilitates the proper calculation of freight charges for lightweight but bulky items and other types of cargo.
Also Read: What Are High Cube Containers in Shipping?
In cases where you are shipping smaller quantities of cargo and do not fill an entire container, Less than Container Load (LCL) shipments come into play. In LCL, multiple shippers share container space, and the cost is typically based on either the weight or the CBM of the cargo—whichever is higher. For bulky, low-weight goods, the CBM will often drive up the cost.
How to Calculate CBM?
Understanding how to calculate CBM is crucial for estimating shipping costs for your cargo. Regardless of whether you're shipping via air or sea, the method for calculating CBM is similar, and the formula remains consistent. Here's a breakdown for both air and sea shipments:
a) How to Calculate Air Shipment Cost Using CBM
Follow these steps to calculate CBM for air shipments:
1. Measure Dimensions: Record the length, width, and height of your cargo in centimeters (cm).
2. Calculate CBM: Multiply the length, width, and height to get the CBM value.
3. Check for Dimensional Weight Factors: Most air freight carriers use a dimensional weight factor (typically 1:6000). This means for every cubic meter, the weight will be considered 6,000 kilograms.
4. Compare Weights: Calculate the volumetric weight by multiplying your CBM by the DIM factor of the air freight carrier. Then, compare the volumetric weight to the actual weight of your cargo.
5. Charge Based on the Higher Weight: The higher of the actual weight or volumetric weight will be used to calculate the shipping cost, based on the carrier's rate per kilogram.
b) How to Calculate Sea Shipment Cost Using CBM
For sea shipments, the process is similar but focuses on the cargo’s volume rather than dimensional weight:
1. Measure Dimensions: Get the length, width, and height of your cargo in meters.
2. Calculate CBM: Multiply the length, width, and height to determine the CBM value.
3. Multiple Items: If shipping multiple items, calculate the CBM for each separately and sum them to get the total CBM.
4. Freight Rate: Multiply the total CBM by the freight rate per cubic meter provided by your shipping carrier to get the total sea shipment cost.
Formula for Calculating CBM (for both air and sea shipments):
CBM = Length (m)×Width (m)×Height (m)
By using the same formula to calculate the CBM for both air and sea shipments, you can easily estimate the shipping cost based on the volume of your cargo. Whether it's air or sea freight, the core principle remains the same—calculating the volume (CBM) and using the applicable rate to determine costs.
Difference Between Total Weight and Volumetric Weight
It is crucial to understand what is CBM, but also the differences between the total weight and volumetric weight. The table below shows their differences in regards to shipment in India:
To optimize shipping costs, it’s essential for businesses to understand CBM, as it plays a significant role in determining freight expenses. By accurately calculating the volume of goods, businesses can maximize container space, reduce shipping costs, and improve logistics efficiency. To streamline your business operations and gain access to fast working capital, explore funding solutions with Drip Capital today!
Frequently Asked Questions
1. How many CBMs are in a container?
In India, a standard container of 20 feet holds approximately 33 Cubic Meters(CBMs). In a 40-foot container, it can hold around 66 Cubic Meters(CBMs). The capacity may vary depending on the type of container and how cargo is efficiently packed in the container.
2. How many CBMs are in a pallet?
The standard Indian pallet, with dimensions around 1200mm x 800mm, would occupy roughly 0.96 Cubic Meters(CBMs). The exact CBM per pallet can also vary depending on its size.
3. How does CBM impact freight rates?
CBM directly influences freight rates by determining the volume of the shipment. Even if the cargo is light in weight but occupies a large space, the shipping cost will increase based on its volumetric weight. Shipments that take up more space, especially bulky or lightweight goods, incur higher freight costs.
4. What is the full form of CBM?
In shipping, CBM stands for Cubic Meters.
5 . How many CBMs is a 40-foot container?
A 40-foot container can hold around 66 Cubic Meters(CBMs).
6. How many CBMs is a 20-foot container?
A 20-foot container holds approximately 33 Cubic Meters(CBMs).
7. What is CBM in packaging terms?
In packaging terms, CBM stands for Cubic Meter. It is used to measure the volume of a shipment and the space occupied in a container. The CBM influences shipping costs.
