Glossary


Terms & Glossaries of Shipping and Trading

CBM (Cubic Metre)

The cubic metre or CBM is the unit of volume in the International System of Units (SI). It is the volume of a cube with edges one metre in length.

Detailed Overview of CBM (Cubic Metre) and Its Application in Freight Shipping

Cubic Metre (CBM) is a standard unit of measurement used in the logistics and freight industry to calculate the volume of cargo. It is a crucial metric for determining shipping costs, optimizing space, and ensuring efficient transportation of goods. This article provides a comprehensive overview of CBM and its application in freight shipping.

Definition of CBM

A Cubic Metre (CBM) is a unit of volume in the International System of Units (SI). It represents the space occupied by a cube with each side measuring one metre. The CBM is widely used to measure the volume of goods in shipping, especially for larger cargo that is not weighed but rather measured by space.

Calculation of CBM

To calculate the CBM of a shipment, you need to measure the length, width, and height of the cargo in metres and then multiply these dimensions:

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

For example, if a box measures 2 metres in length, 1.5 metres in width, and 1 metre in height, its volume in CBM is:

2 × 1.5 × 1 = 3 CBM

Application of CBM in Freight Shipping

1. Freight Cost Calculation: Shipping companies often use CBM to calculate freight charges for ocean and air cargo. The cost is typically based on the volume of the cargo, as larger volumes occupy more space in the shipping container or aircraft hold.

Example: If the rate is $50 per CBM and the cargo volume is 10 CBM, the freight cost would be $500.

2. Container Space Optimization: Knowing the CBM of cargo helps in optimizing the space within shipping containers. It allows for efficient planning and stacking of goods to maximize container usage.

Standard Container Capacities:
20-foot container: Approximately 33 CBM
40-foot container: Approximately 67 CBM

3. Weight vs. Volume: Freight charges can be based on weight or volume, depending on which measurement yields higher revenue for the carrier. For instance, lightweight but bulky items are charged based on their volume (CBM), whereas heavy items are charged based on weight.

Dimensional Weight: Airlines and express carriers use a concept called dimensional weight, which is calculated using a conversion factor to determine the volume-based weight.

4. Documentation and Customs: Accurate CBM measurement is crucial for shipping documentation and customs clearance. It ensures compliance with regulations and facilitates the smooth processing of shipments.

Example: The Bill of Lading and packing list typically include the CBM of the cargo to provide precise volume information to customs authorities.

5. Cargo Classification: Different types of cargo require specific handling and stowage procedures based on their volume. For example, perishable goods might need refrigerated containers, while oversized cargo requires special equipment for loading and unloading.

6. Warehouse Management: Warehouses use CBM to allocate storage space for incoming shipments. This helps in efficient inventory management and space utilization.
Example: A warehouse manager can plan the layout and stacking of goods based on their volume to ensure optimal space usage.

Importance of CBM in Logistics

1. Cost Efficiency: Proper CBM calculation helps in estimating shipping costs accurately, avoiding overpayment or underpayment for freight services.

2. Space Management: Efficient use of container and warehouse space reduces operational costs and enhances the capacity to handle more shipments.

3. Regulatory Compliance: Accurate volume measurement ensures adherence to international shipping regulations and prevents customs delays.

4. Operational Planning: Logistics companies can plan loading, stowage, and transportation more effectively, improving overall supply chain efficiency.

Conclusion

The Cubic Metre (CBM) is an essential unit of measurement in the freight and logistics industry, used to determine the volume of cargo for shipping. It plays a vital role in calculating freight costs, optimizing container space, ensuring regulatory compliance, and managing warehouse inventory. Accurate CBM calculation is crucial for cost-effective and efficient shipping operations, making it a fundamental aspect of global trade and logistics. Understanding and utilizing CBM effectively can lead to significant improvements in logistics planning, operational efficiency, and overall cost management.