How to Calculate Ocean Freight Charges (Step by Step)

Ocean freight pricing can feel complex because the “freight rate” is only one part of the total. In most quotes, your final cost is:

Main ocean freight + origin charges + destination charges + surcharges + optional services (pickup, delivery, customs, insurance)

If you want an instant estimate with a cost breakdown, start with the ocean freight calculator.

1) Choose your shipping mode: FCL or LCL

FCL (Full Container Load)

You book a full container and typically pay a flat rate per container, then add local charges and surcharges. Learn more in FCL shipping.

LCL (Less than Container Load)

You share container space and pricing is usually based on chargeable units (commonly W/M). See LCL shipping.

If you are deciding between the two, use LCL vs FCL for the typical volume breakpoints and tradeoffs.

2) Understand what you are billed on

LCL uses W/M (Weight or Measure)

In many LCL quotes, you pay based on W/M, meaning the chargeable quantity is the higher of:

• Volume in CBM, or
• Weight in metric tons (1,000 kg = 1 ton)

Chargeable W/M = max(CBM, weight in tons)

To validate your volume quickly, use the cubic meter calculator.

FCL uses container pricing

For FCL, the base ocean freight is usually a rate per container type (20’, 40’, 40HC), then you add local charges and surcharges.

3) Calculate CBM (for LCL, and sometimes for pickup planning)

CBM = Length (m) × Width (m) × Height (m) × Number of cartons

Example: 10 cartons, each 0.60 m × 0.40 m × 0.50 m
CBM per carton = 0.60 × 0.40 × 0.50 = 0.12 CBM
Total CBM = 0.12 × 10 = 1.20 CBM

4) Calculate LCL chargeable W/M

Continuing the example:

• Total volume = 1.20 CBM
• Total weight = 650 kg = 0.65 tons

Chargeable W/M = max(1.20, 0.65) = 1.20 W/M

If the quote is $85 per W/M, then:
Base LCL ocean freight = 1.20 × 85 = $102

5) Add the main cost components

Ocean quotes usually break into these buckets. The naming varies by forwarder and lane, but the logic is consistent.

A) Origin charges (export side)

Common examples:

• Documentation fees
• Port handling fees such as terminal handling charges (THC) (learn what that includes in terminal handling charges)
• LCL CFS handling (for consolidated cargo)

B) Destination charges (import side)

Common examples:

• Destination handling and terminal fees
• LCL CFS fees for deconsolidation
• Local release and handling charges

C) Surcharges (carrier-driven)

These are add-ons on top of the base rate. Helpful references:

• fuel surcharge in ocean freight
• what is a GRI
• surcharge ranges in container shipping

D) Time-related delay fees (avoid surprises)

If cargo or equipment sits too long, you may see demurrage, detention, or per diem. See demurrage, detention, and per diem fees.

For an overview of cost categories and how they fit together, you can link shipping prices and costs.

6) Full worked examples

Example A: LCL total estimate (illustrative structure)

Shipment:

• Chargeable W/M: 1.20
• Ocean freight rate: $85 per W/M
• Origin charges: $65
• Destination charges: $95
• Surcharges: $18 per W/M

Calculation:

• Base ocean freight: 1.20 × 85 = $102
• Surcharges: 1.20 × 18 = $21.60
• Origin charges: $65
• Destination charges: $95

Estimated total (excluding duties, taxes, and inland trucking): $283.60

Example B: FCL total estimate (illustrative structure)

Shipment:

• 40HC container
• Ocean freight rate: $2,450 per container
• Origin THC and docs: $420
• Destination THC and local fees: $520
• Surcharges: $180 per container

Estimated total: $3,570 (excluding duties, taxes, and inland trucking)

To compare FCL and LCL pricing quickly side by side, use the freight cost calculator.

7) Do not forget documents and Incoterms

Even when documents do not change the freight rate directly, they can affect release and handling steps. For B/L basics, link how to fill out a Bill of Lading from your “documents” section.

Incoterms define who pays which legs and charges (freight, origin, destination, import clearance). If you need a specific example page, CFR Incoterms is a clean internal reference.

Final takeaway

To calculate ocean freight charges accurately:

1. Choose LCL or FCL
2. For LCL, compute CBM and weight in tons, then take the higher as chargeable W/M
3. Apply the base rate (per W/M or per container)
4. Add origin charges, destination charges, and surcharges
5. Account for timing risk like demurrage and detention