Gift Shipping Knowledge + CBM Calculator

CBM stands for Cubic Meter, the standard unit used in the freight industry to calculate cargo volume. Understanding CBM is crucial for corporate gift procurement as it directly affects shipping costs.

Why is CBM important for gift procurement?

1. Freight Calculation Basis: Whether by sea or air, freight is usually calculated based on actual weight or volumetric weight (CBM conversion), whichever is higher.

2. Packaging Planning: When ordering corporate gifts (such as USB flash drives, travel adapters, etc.), knowing the packaging size and total CBM of each item helps you accurately estimate freight and storage costs.

3. Container Selection: When your order quantity is large, knowing the total CBM helps you decide whether to choose FCL (Full Container Load) or LCL (Less than Container Load), thereby saving costs.

4. Cost Control: Calculating CBM in advance avoids extra freight charges due to oversized packaging, especially for gifts with large volume but light weight (such as travel bags, pillows, etc.).

Calculation Formula:
CBM = Length(m) × Width(m) × Height(m)
or
CBM = Length(cm) × Width(cm) × Height(cm) ÷ 1,000,000

Volumetric Weight (also called Dimensional Weight) is an "equivalent weight" calculated based on cargo volume, mainly used for charging air freight and express services. This concept balances the space occupied by goods with large volume but light weight.

Why is volumetric weight needed?
In the transportation industry, aircraft and trucks have limited cargo space. If charged only by actual weight, shipping a large box of cotton (large volume but light) versus a small box of metal (small volume but heavy) would differ significantly in cost, but their actual space cost is different. Therefore, transport companies calculate volumetric weight and compare it with actual weight, charging based on the higher value.

Volumetric Weight Formula:

Air Freight/Express (DHL, FedEx, UPS, etc.):
Volumetric Weight(kg) = Length(cm) × Width(cm) × Height(cm) ÷ 5000
or
Volumetric Weight(kg) = CBM × 167

Sea Freight LCL:
Volumetric Weight(kg) = CBM × 1000
(Note: Sea freight is usually charged by CBM or Revenue Ton, 1 cubic meter = 1 ton)

Real Case:
Suppose you ordered 100 travel adapter gifts, each package size 20×15×8 cm, actual weight 0.3 kg.

Per unit volumetric weight = 20 × 15 × 8 ÷ 5000 = 0.48 kg
Per unit actual weight = 0.3 kg

Since volumetric weight (0.48 kg) is greater than actual weight (0.3 kg), courier charges by 0.48 kg.
Total chargeable weight = 0.48 kg × 100 = 48 kg

This is why optimizing packaging size is so important for reducing freight costs!

Sea freight and air freight are two main methods of international cargo transportation, with significant differences in charging methods, transit time, and costs. Understanding these differences helps you choose the most suitable and economical shipping method for corporate gift orders.

1. Sea Freight Charges

FCL (Full Container Load):
• Charged per container, fixed cost regardless of load
• Suitable for large quantity orders (usually >15-20 CBM)
• Includes: base freight + fuel surcharge + port fees + document fees, etc.

LCL (Less than Container Load):
• Charged by actual CBM or Revenue Ton, whichever is greater
• 1 Revenue Ton = 1,000 kg or 1 CBM
• Suitable for small to medium orders (1-15 CBM)
• Usually has minimum charge (e.g., minimum 1 CBM)

2. Air Freight Charges

• Charged by Chargeable Weight
• Chargeable Weight = MAX(Actual Weight, Volumetric Weight)
• Volumetric Weight = L×W×H(cm) ÷ 5000 or CBM × 167
• Rates usually tiered by weight, lower unit price for higher weight
• Additional fees: fuel surcharge, security fee, document fee, etc.

3. Express Charges

• Similar to air freight but more detailed (usually 0.5kg increments)
• DHL/FedEx/UPS have different volumetric weight factors
• Suitable for small batches, urgent orders (<50kg)

Comparison Table:

In sea freight, LCL and FCL are two main shipping methods. Which to choose depends on your cargo quantity, budget, and time requirements. Here's a detailed comparison and selection guide.

What is LCL (Less than Container Load)?

LCL means multiple shippers share one container, each paying only for their cargo space.

Advantages:
• Suitable for small to medium orders (1-15 CBM)
• Pay only for space used
• High flexibility, no need to fill full container
• Lowers barrier for small orders

Disadvantages:
• Higher unit cost (per CBM cost higher than FCL)
• Longer transit time (waiting for consolidation/deconsolidation)
• Cargo needs multiple handling, slightly higher risk
• Usually has minimum charge (e.g., 1 CBM minimum)

What is FCL (Full Container Load)?

FCL means you rent entire container alone, charged per container whether full or not.

Advantages:
• Lowest unit cost for large orders
• Faster transit (direct shipping, no consolidation)
• Higher cargo security (sealed container)
• Less handling, lower damage risk

Disadvantages:
• Need sufficient cargo volume to be cost-effective
• Fixed cost even if not full
• Higher capital requirement

How to choose? Key is "CBM Break-even Point"

Based on market experience, FCL usually becomes more cost-effective when cargo volume reaches:

• 15-18 CBM: LCL and FCL balance point
• Less than 15 CBM: Choose LCL
• More than 18 CBM: Choose FCL (20' container)
• More than 30 CBM: Choose 40' container

Real Cases:

Case 1: Small USB drive order
Order: 1000 USB drives, each box 12×8×3 cm
Total CBM = 0.000288 × 1000 = 0.288 m³
Recommendation: Express or air freight (sea LCL not cost-effective)

Case 2: Medium travel adapter order
Order: 3000 travel adapters, each package 20×15×8 cm
Total CBM = 0.0024 × 3000 = 7.2 m³
Recommendation: Sea LCL

Case 3: Large mixed gift order
Order: Mixed gifts, total 20 CBM
Recommendation: Sea FCL (20' container), saves 30-50% vs LCL

Important Note:
• Calculate CBM by outer carton size, not individual item size
• Container utilization usually only 85-90% (consider stacking and gaps)
• If your volume near 15-18 CBM break-even, request quotes for both options before deciding

Packaging design affects not only product appearance and protection but directly impacts shipping costs. Especially for air freight or express, volumetric weight is often the main charging basis. Here are practical packaging optimization strategies to significantly reduce freight costs.

1. Reduce Package Size

This is the most direct and effective method. Every centimeter reduction in packaging size can save significant freight costs.

Optimization Suggestions:
• Use compact color box designs, avoid excessive white space
• Reduce unnecessary inner linings and fillings
• Use blister or clamshell packaging instead of thick inner boxes
• Flat design: Keep products flat rather than cubic

Example:
Original: 20×15×10 cm (CBM = 0.003 m³)
Optimized: 18×13×8 cm (CBM = 0.001872 m³)
Saved: 37.6% volume, equals 37.6% air freight savings!

2. Standardize Carton Sizes

Using standardized outer carton sizes improves loading efficiency, reduces gap waste.

Recommended Standard Sizes:
• Small: 40×30×30 cm (0.036 CBM)
• Medium: 50×40×40 cm (0.08 CBM)
• Large: 60×50×50 cm (0.15 CBM)

These sizes work well with standard pallets (120×100 cm) for maximum loading efficiency.

3. Optimize Product Stacking

• Design stackable packaging structure
• Avoid irregular shaped packaging
• Consider uniform packaging height for multi-layer stacking

4. Choose Appropriate Packaging Materials

• Use lightweight but sturdy materials (e.g., E-flute, B-flute corrugated cardboard)
• Avoid over-packaging: no need for double cartons unless product is very fragile
• Consider vacuum packaging to reduce volume (suitable for fabric/soft gifts)

5. Calculate "Per Unit" vs "Outer Carton" CBM

Many customers only consider product box size when calculating CBM, ignoring outer carton size. Logistics companies charge by outer carton.

Correct Calculation Method:
Suppose USB drive color box size: 12×8×3 cm
50 pieces per outer carton, outer carton size: 40×30×25 cm

❌ Wrong: 50 × 0.000288 m³ = 0.0144 m³
✅ Correct: Outer carton CBM = 0.03 m³

Difference: 0.03 ÷ 0.0144 = 2.08 times!

6. Mixed Packaging Strategy

If order contains multiple products, consider:
• Mix different products in same outer carton, improve space utilization
• Fill small gifts in gaps of large gifts
• Use modular packaging, flexible combinations

7. Negotiate Packaging with Suppliers

When ordering corporate gifts, proactively request packaging optimization:
• Request most compact packaging solution
• Ask if bare or simple packaging possible (suitable for B2B gifts not needing retail display)
• Confirm outer carton size and packing quantity

Summary:
Packaging optimization is one of the most effective methods to reduce freight costs, especially for air freight and express. When planning corporate gift orders, we recommend:
1. Use our CBM calculator to compare different packaging solutions
2. Request detailed packaging size data from suppliers before confirming orders
3. Consider balance between packaging cost and freight cost
4. For large orders, even if packaging optimization adds some cost, freight savings often far exceed packaging costs