From selecting the right packaging materials to determining freight rates, there are many factors involved in the shipping process. From the surface, calculating your shipping costs may seem simple—just weigh your shipments, and you can estimate the cost. Alas, that is not how it normally goes.

When it comes to shipping, especially in international trade, understanding space and volume is crucial, and one of the most important metrics used in logistics is CBM, or Cubic Meter, which measures the volume of shipments.

So, whether you’re shipping large containers or smaller packages, it’s important to know how to accurately calculate CBM. This knowledge helps ensure efficient space utilization, accurate shipping costs, and smooth customs clearance, whether you’re new to logistics or looking to optimize your shipping process.

To streamline your global trade operations and minimize costs, mastering CBM calculation is essential. In this blog, we will explore what CBM is, how it is calculated, and its significance for shipping companies worldwide.

What is CBM And How is it Calculated?

CBM, or Cubic Meter, is a standard unit of measurement used to determine the volume of a shipment. It calculates the space a package or cargo occupies in a shipping container, whether transported by sea, air, or land.

This measurement helps shipping companies determine how much space a shipment will take up, which is critical for pricing, logistics planning, and optimizing container usage.

Calculate The CBM of Standard Containers

To calculate CBM for a standard container in square or rectangle form, you must multiply the length, width, and height of the package in meters.

The formula for calculating the CBM of a square or rectangle-shaped container is as follows:

If you have a box with the dimensions:

1. Length: 2 meters
2. Width: 1.5 meters
3. Height: 1 meter

The CBM calculation would be: 2 × 1.5 × 1 = 3 cubic meters

Calculate The CBM of Cylindrical Containers

Calculating the CBM for cylindrical containers involves a different approach than for rectangular or square containers. Since a cylindrical container has a circular base, the formula for volume is based on the area of the base and the height of the cylinder.

The formula for calculating the CBM of a cylindrical container is as follows:

Here, the particulars are denoted as follows:

• π = 3.1416 (constant)
• Diameter = the diameter of the circular base (in meters)
• Height = the height of the cylinder (in meters)

Steps:

1. Measure the diameter of the cylinder's base in meters.
2. Measure the height of the cylinder in meters.
3. Apply the Formula:
   • Divide the diameter by 2 to get the radius.
   • Square the radius and multiply by π (3.1416) to get the base area.
   • Multiply the result by the height of the cylinder to calculate the volume in cubic meters (CBM).

If you have a cylindrical container with:

• Diameter: 2 meters
• Height: 3 meters

The CBM calculation would be:

• CBM = 3.1416 × (2/2)² × 3
• CBM = 3.1416 × 1² × 3 = 3.1416 × 3 = 9.4248 cubic meters

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Now that we have a fair understanding of what CBM is and how it is calculated for various containers, let us take a look at some tried-and-tested tips to make the entire calculation process smoother.

Essential Tips For Calculating The CBM of Shipping Containers of All Dimensions

Accurately calculating CBM is essential for ensuring proper shipping cost estimation and efficient use of container space. Here are some essential tips to keep in mind when calculating the CBM of a container:

1. Convert All Measurements to Meters
   Ensure that all dimensions (length, width, height, or diameter and height for cylindrical containers) are measured in meters. If your measurements are in centimeters or inches, convert them to meters by dividing by 100 (for cm) or 39.37 (for inches).
2. Account for Irregularly Shaped Items
   If you are shipping irregularly shaped items like furniture, machinery parts, etc, calculate the CBM based on the container or packaging that encloses the item. This ensures you are measuring the overall space the item occupies, not just its actual dimensions.
3. Consider Multiple Items in One Container
   If you're shipping multiple boxes or items in the same container, calculate the CBM for each item individually and then sum the values to get the total CBM for the shipment.
4. Use Standard Container Dimensions When Necessary
   If you're calculating CBM for a standard shipping container, like a 20ft or 40ft container, use the container’s internal dimensions, length, width, and height, to calculate the total available CBM. This helps you know the maximum capacity for your shipment.
5. Allow for Packaging and Palletization
   When calculating CBM, don’t forget to include the space taken up by packaging materials, such as boxes, pallets, or cushioning. The packaging increases the overall volume, which affects the CBM.
6. Factor in Air Spaces and Gaps
   If your items do not fit perfectly into the container and leave gaps or unused space, consider this. While these spaces may not contribute to the exact volume of your cargo, they can impact how much total space the shipment occupies.
7. Consider Weight for Shipping
   While CBM focuses on volume, remember that some shipping companies also use weight to determine costs. If your shipment is dense, the weight may be a more significant factor than volume.
8. Double-Check Measurements
   Always double-check your measurements for accuracy. Even small errors in dimensions can lead to inaccurate CBM calculations, affecting shipping costs and container planning.
9. Use Online CBM Calculators
   To avoid manual errors, consider using online CBM calculators. Many logistics companies and shipping platforms offer CBM calculators that simplify the process by allowing you to enter your dimensions directly.
   Just as using online tools can enhance accuracy in logistics, making use of platforms like PayGlocal can ensure smooth, accurate international transactions with their cutting-edge payment technology.
10. Keep in Mind Shipping Company Policies
    Different shipping companies may have their own methods for calculating shipping charges based on volume and weight. Be sure to understand their policies and whether they round up CBM values or have minimum volume requirements for shipments.

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Looking at those tips, calculating CBM has never been easier. Still, why do you need to do it in the first place? Come, let us understand the importance of calculating CBM for shipping companies worldwide.

Importance of CBM For Shipping Companies Globally

In an industry where space and cost efficiency are key, CBM plays a vital role in balancing shipping rates with container utilization, making it a critical factor in global shipping operations.

Here are a few pointers to highlight why CBM is important for shipping companies globally:

1. Accurate Freight Cost Calculation
   You can factor in both the weight and volume of cargo to determine shipping costs. In cases where a shipment is large but lightweight, CBM becomes essential for calculating freight charges accurately. This ensures that customers are charged fairly based on the space their cargo occupies, rather than just its weight.
2. Efficient Space Utilization
   CBM allows you to optimize container space by determining how much cargo can fit into a container. This is especially important for international shipping, where maximizing space reduces costs and improves operational efficiency.
3. Standardization Across Global Shipping
   CBM provides a universal standard for measuring volume, ensuring consistency across shipping companies worldwide. This standardization makes it easier for you to estimate shipping costs, plan logistics, and communicate with carriers regardless of the shipping method or location.
4. Customs and Documentation
   CBM is also used in customs documentation and clearance processes. Accurate CBM calculations help ensure that shipments meet regulatory requirements and avoid delays or penalties at international borders.

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Now that we are well aware of the importance of calculating CBM for shipping companies, what are the other crucial elements that help determine it? Check them out in the next section.

Key Elements of CBM in Shipping

CBM plays a crucial role in determining shipping costs, but it’s not the only factor. Several other elements, such as chargeable weight, dimensional weight, and freight class, also contribute to the final cost of shipping a product.

Essentially, these factors will help you assess the space and weight of shipments and calculate the most efficient and cost-effective way to transport goods. Take a look at some of the key elements to understand when dealing with CBM in shipping:

1. Chargeable Weight
   Chargeable weight is the weight used by the shipping carrier to determine shipping costs. It can be either the actual weight of the shipment or its dimensional weight, whichever is higher.
   Chargeable weight ensures that both the weight and volume of the shipment are accounted for in pricing. For bulky but lightweight items, carriers often charge based on volume rather than actual weight, making CBM a key factor.
2. Dimensional Weight
   Dimensional weight, also called volumetric weight, is a calculation that reflects the space a package occupies relative to its actual weight. It is calculated using the formula:

   Dimensional Weight = (Length × Width × Height) / Dimensional Factor.

   
   For lightweight but large shipments, dimensional weight can be higher than actual weight. You can often charge based on the greater of the two, meaning that CBM and volume are critical in determining the dimensional weight and final shipping costs.
3. Freight Class
   Freight class is a classification system used for determining the cost of shipping freight. It is based on factors such as density, stowability, handling, and liability. The freight class, in particular, determines how easy or difficult it is to ship an item.
   CBM impacts the density of a shipment, which in turn affects its freight class. Items with lower density (high CBM relative to weight) fall into higher freight classes and incur higher shipping costs. Accurate CBM calculations are important for determining the correct freight class and avoiding overcharges.
   Understanding your shipment's classification ensures cost-efficiency, much like how PayGlocal's services ensure efficiency in processing diverse global payments by supporting multiple currencies.
4. Actual Weight
   This is the actual physical weight of the shipment, as measured in kilograms or pounds. While CBM calculates the volume, the actual weight of the shipment is always considered. If the actual weight is higher than the dimensional weight, shipping costs will be based on the actual weight.
5. Package Dimensions
   Package dimensions, length, width, and height, are the physical measurements of the shipment and are used to calculate its volume.
   Accurate measurement of package dimensions is essential for determining the correct CBM, especially for large, irregularly shaped items. Incorrect dimensions can result in under or overestimating shipping costs.
6. Full Container Load (FCL) vs. Less than Container Load (LCL)
   In FCL, the shipper uses the entire container, while in LCL, the shipment shares space with other goods in the same container.
   CBM plays a critical role in LCL shipping, as costs are calculated based on the volume occupied by the cargo. The more space your shipment takes up in the container, the higher the costs.
7. Stowability
   Stowability refers to how easily goods can be loaded and stored in a shipping container. Items with high CBM may be difficult to stow efficiently, increasing costs. Shipping companies use CBM and stowability to plan container utilization and determine if special handling or equipment is required.
8. Handling Requirements
   Handling refers to the ease or complexity of moving the shipment during transport.
   High-CBM shipments that require special handling equipment (such as forklifts or cranes) incur additional charges.

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Calculating CBM is crucial for a shipping company to know how much shipment it can carry and what mode of transportation it will require to do so. But what about the cost? Check out the impact CBM has on the overall shipping cost in the next section.

Impact of CBM on Shipping Costs - Key Aspects To Consider

CBM is a critical factor in determining shipping costs, as it measures the volume of a shipment, and it is common knowledge that the more space your goods occupy in a shipping container, the higher the shipping cost will likely be.

Therefore, understanding how CBM impacts costs can help businesses plan better and optimize their shipping processes. Here’s a breakdown of the key aspects to consider to determine the impact CBM has on the overall shipping costs you’ll have to eventually incur.

1. Space Utilization in Containers
   CBM directly affects how much space your shipment takes up in a container. Efficiently packed goods with smaller CBM values allow for better container utilization, lowering the cost per unit. Larger CBM shipments take up more space, leading to higher charges.
2. Mode of Transport
   Whether you’re shipping by air, sea, or land, the impact of CBM on costs varies. Sea freight typically charges based on both CBM and weight, with CBM being the primary factor for larger, bulkier items. Air freight, on the other hand, tends to be more weight-sensitive, but large volumes still drive up costs.
3. Dimensional Weight Considerations
   In some cases, particularly with air freight, carriers use dimensional weight to calculate costs. If your shipment is large but lightweight like a box of feathers, the shipping cost may be based on the space it occupies rather than its actual weight, resulting in higher costs.
4. Freight Class and Surcharges
   You can often apply surcharges or categorize goods into different freight classes based on their volume. Bulky, low-density items are usually charged more due to the space they occupy in the shipping container, even if they weigh less.
5. Port Fees and Handling Charges
   CBM impacts not only shipping costs but also handling charges and port fees. As a result, large-volume shipments may incur higher handling fees, as they require more space and effort during loading and unloading operations.
6. Custom Duties and Taxes
   Custom duties in some countries are calculated based on the volume of the goods being imported. Larger shipments with a higher CBM can attract higher customs duties and taxes, increasing the overall shipping cost.
7. Container Capacity and Partial Loads
   If you don’t fill an entire container, but your shipment has a high CBM, you may still pay for unused container space. In less-than-container-load (LCL) shipping, CBM determines how much of the container’s capacity is taken, and you’ll be charged accordingly.
8. Fuel Surcharges
   For sea or air freight, fuel surcharges are often calculated based on the volume of the shipment. A higher CBM means the carrier uses more fuel to transport your goods, leading to increased fuel surcharges and, consequently, higher overall shipping costs.
9. Load Planning and Efficiency
   Optimizing CBM can reduce your overall costs by ensuring shipments are packed efficiently. This helps you avoid paying for unnecessary volume and ensures better load planning for the shipping company, leading to potential cost savings.
10. Carrier-Specific Pricing Models
    Each carrier has its pricing model, and some may charge based on CBM, while others consider a mix of weight and volume. Therefore, understanding how each carrier calculates costs based on CBM is of utmost importance as it helps you in selecting the most cost-effective shipping option for your cargo.

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But hold on, there's, even more, to uncover about how CBM interacts with shipping strategies, so let's dive right into understanding the CBM calculation process for different container forms.

Knowing about CBM is one thing, but what will you do if you have to transport shipments in unusual-shaped containers? Take a look at the formula and steps to follow to calculate the shipping cost of a container using CBM, regardless of its dimensions.

Calculating Shipping Costs Using CBM For Different Types of Shipments

The shipping cost calculation varies a lot depending on the mode of transportation, whether air, truck, or sea, as each method has its own formula for using CBM to determine how much you’ll pay for transporting your cargo.

Here’s an overview of how shipping costs are calculated using CBM for different transport modes with examples for more clarity:

1. Air Shipments
   Air freight is often the fastest, but also the most expensive, method of transporting goods. In air shipments, both weight and volume are used to calculate the cost. Here, you charge based on either the actual weight or the dimensional (volumetric) weight—whichever is higher.

   Formula for Air Freight:
   

   Dimensional Weight = (Length × Width × Height in cm) / 6000

   Example:
   

   You are shipping a package with the following dimensions:

   1. Length: 150 cm
   2. Width: 100 cm
   3. Height: 80 cm
   4. Actual Weight: 300 kg
   
   Calculate the Dimensional Weight:

   Dimensional Weight = (150 × 100 × 80) / 6000 = 200 kg

   In this case, since the actual weight (300 kg) is higher than the dimensional weight (200 kg), the air freight cost will be calculated based on 300 kg.

2. Truck Shipments
   For land transport, especially truck shipments, CBM is used to calculate the space your shipment occupies in the truck. Trucking companies often charge based on the volume of goods being transported, though weight is still a consideration in some cases.

   Formula for Truck Freight:

   CBM = Length (m) × Width (m) × Height (m)
   Example:

   You’re shipping goods with the following dimensions:

   1. Length: 2.5 meters
   2. Width: 2 meters
   3. Height: 2 meters
   
   Calculate the CBM:
   CBM = 2.5 × 2 × 2 = 10 cubic meters

   If the truck company charges USD 100 per CBM for transport, your total shipping cost will be:
   10 CBM × USD 100 = USD 1k

3. Sea Shipments
   Sea freight is typically the most cost-effective option for transporting large volumes of goods. In sea shipments, CBM is the primary factor for calculating shipping costs, especially for less-than-container-load (LCL) shipments. Costs depend on how much space your cargo occupies in a shipping container.
   Formula for Sea Freight:
   
   CBM = Length (m) × Width (m) × Height (m)

   Example:
   You’re shipping goods with the following dimensions:
   

   1. Length: 4 meters
   2. Width: 2 meters
   3. Height: 2.5 meters
   Calculate the CBM:
   CBM = 4 × 2 × 2.5 = 20 cubic meters

   If the ocean freight rate is USD 50 per CBM, the total shipping cost will be:
   20 CBM × USD 50 = USD 1k

In sea freight, if you're shipping a full container (FCL), costs are usually based on a flat rate per container. For LCL, costs are based on the CBM of the shipment, as shown above.

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Knowing how much shipment can be accommodated in a container is essential to understand its CBM and determine whether it can be used to transport certain shipments at all. Check out the load capacity of different containers based on their dimensions.

CBM Fit in Containers - A Brief Overview of The CBM Capacity of Common Shipping Containers

Understanding how much cargo can fit into a standard shipping container based on CBM is crucial for optimizing space and controlling shipping costs. Containers come in standard sizes, and each has a maximum CBM capacity that indicates how much volume it can hold.

Below is an overview of the CBM capacity for common shipping containers:

Now that we have a fair understanding of various aspects of CBM in shipping, it is time we summarize the key points.

Conclusion

In shipping, CBM is a critical measurement used to calculate the volume of a shipment and helps determine how much space your cargo will occupy in a shipping container, which directly influences its shipping costs. CBM is essential for you as it allows you to optimize container space, balance weight and volume, and ensure accurate pricing for your customers.

Moreover, calculating CBM correctly is crucial for efficient logistics. It is also advisable to follow essential tips, such as converting dimensions to meters, considering packaging materials, and accounting for irregularly shaped items, to get the most precise CBM calculations.

Ultimately, the impact of CBM on shipping costs is significant, especially when dealing with larger, bulkier, or lightweight goods. By accurately calculating CBM, you can optimize container usage, avoid paying for unused space, and manage your shipping expenses effectively.

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