The logistic industry is strengthening the global economy in its own way. The arrival of 3 PL, the emergence of automation in this industry and the arrival of new-age technology has contributed to its growth. The internet, mobile apps have become the best platform to search for the suitable freight forwarding agent for your business. But it becomes a bit overwhelming decision if you are working on a budget. Hence, in this article, we have enlisted the different charges that are included in the container shipping rate. You can learn about these charges and optimize it to streamline the cost.
Factors that affect ocean freight rate
- Destination
The destination is where the shipment will be transported. It plays an important role in calculating the container shipping rates. In simple words, the longer the journey, the hefty the ocean shipping rate and vice versa.
- Service Charges
Any additional charge levied by the port authorities like security service charge will affect the ocean freight rate
- Season
For particular goods, a season plays an important role. Grains and fruits transported in rainy season will attract high ocean freight rate.
- Currency
Ocean freight rate also depends upon the fluctuation of currency for international transaction purpose. It depends upon fluctuating exchange rate and therefore the consignor needs to pay the latest prevailing exchange rate.
- Fine and fees
If the ship does not reach the port on time then also the authorities levies the fine which in turn affects the ocean shipping rate.
- Terminal charges
The ocean freight rate also depends upon the fees that need to be paid by consignor while starting the journey from the import and reaching to the intended destination. The fee is called terminal fees and it also impacts the ocean freight rate.
- Bunker capacity
Bunkers are the containers in which the fuel is stored. The rising fuel prices may distort the ocean freight rate.
- Container capacity
The containers used to store goods also have an impact on the freight rate. For example, if the shipper does not have enough goods to fill in the container, he will increase the shipment cost. So, you have to pay more in-spite of shipping the less capacity.
What are the costs involved in shipping?
There are various costs involved in the shipping of the goods like packing and palletization, container cost, carrier cost, documentation fees, insurance cost, administrative charges, additional surcharges that includes currency adjustment factor and fumigation fees.
How to estimate the charges?
The best way to estimate the cost of shipment is through the freight shipping quote calculator. This calculator helps you to instantly compare air, ocean and trucking freight quotes from the leading service provider depending upon your time, budget and transit time. The calculator contains a large database of freights that provides you with an accurate real-time quote. The quotes are based on live freight rates.
What are the benefits of estimating the cost through the calculator?
- It provides reliable data
One of the major benefits of using international freight calculator is it provides quotes accurately and it is precise. The data includes all the hidden costs including the surcharges.
- Everything is included in the calculator
Now, you don’t need to fret, all fees and surcharges for shipping by air, ocean and truck are included in the freight cost. This calculation is based on dimensional weight.
- Freight duties
The fees charged by the government might not be included in the calculator. You can ask the consignee about the same.
- Offers you varied options
There are various calculators that offer you varied options like you can select inside pick-up, residential pick-up, appointment needed, whether it is commercial delivery, etc.
How to calculate the freight shipping rates?
It is easy to calculate the freight shipping rate using the freight shipping calculator. First of all, search whether you plan to ship the items in containers, boxes or pallets. The shipping company would fill your truck and transport to there respective destination. Then enter the dimension, weight, origin and destination and get the live updates about prices. A company like Shiply will help you out with this. They to automate the process of shipping across the board, reduce cost, and speed up delivery.
Conclusion
In the end, we would like to conclude that the advent of technology has made it possible for the shippers to estimate their cost using the calculator and make the right decision. Each carrier has its own shipment cost, so by predetermining it, you can get the best deal.