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Shipping Costs

Shipping costs vary dependant on the amount of traffic moving to that particular part of the world, the distance shipped and of course the volume. For example, shipping lines will offer more preferential shipping rates to volume shippers, compared to the shipping costs for ad-hoc, or infrequent users.

Shipping rates will also vary dependant upon the type and level of service required. For example do you require a door to door service, or a port to port service? Naturally the shipping rates for a door to door service will be higher than the shipping costs associated with a port to port service as the freight forwarder has to organise inland haulage both in the country of origin and the country of destination.

Shipping costs will also vary depending upon competition, demand, currency fluctuations, oil prices or a mixture of these factors.

There are three main elements that shipping companies will calculate: the ocean freight charged by the carrier, the shipping cost associated with handling and clearing the goods at the ports of loading and discharge and the inland haulage costs both to the port of loading and from the port of discharge.

A number of factors influence how these shipping rates are calculated:

  • Volume. As detailed above, larger or frequent shippers and freight forwarders will be able to negotiate more preferential container shipping rates compared to ad-hoc users
  • Commodity. Shipping quotes for hazardous materials will be higher than the shipping cost associated with non-hazardous goods & materials
  • The origin & destination ports. Congestion charges may apply to busier ports
  • Currency adjustment factor (CAF). To take account of exchange rate changes during the journey, shipping quotes are usually calculated and quoted in US dollars
  • Bunker adjustment factor (BAF), to take account of fuel price fluctuation
  • Surcharges (such as a security surcharge) levied by port authorities to cover the costs of particular regulatory regimes

Another key factor which will affect your final shipping quote is whether or not you are shipping a full container load (FCL). Flat per-container rates will apply, meaning that it is more economical to ship your goods in containers which are full. For less-than-container-load (LCL) consignments, it may be worth considering a shipping quote based on consolidating your goods with those of other traders. That way you'll only pay for the weight or volume of your own goods.

At deliveryquotecompare.com we match your quote request against hundreds of shipping companies to ensure that you get the most competitive shipping quote. Simply click on the button below, enter your consignment details and start comparing shipping costs today!

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