Several conditions and certain aspects can influence shipping container delivery prices for 40’ containers or 20’ containers, including route, volume, and carrier costs.
As we know, shipping containers play a vital role in moving goods around the world, covering 90% of all international trade. Thousands and millions of businesses that import and export goods to and from various parts of the world are the largest contributors to this industry.
Therefore, understanding the ins and outs of container shipping costs is essential for businesses looking to optimize their supply chains and reduce expenses. Knowing the key elements that affect the cost of container delivery can help your business stay on track to meet its profit targets. It is also useful for a company’s financial planning which can impact its sustainability.
Apart from route, volume, and carrier costs, there are also additional external factors that affect container delivery rates that are beyond your control. Here are some factors that affect container delivery costs!
Distance and Destination
The farther the destination, the higher the shipping cost. International shipments, especially those involving trans-oceanic transport, incur significant costs. Delivering to remote or hard-to-reach areas also often comes with additional charges due to limited transportation infrastructure.
Container Size
Standard container sizes (20’ and 40’) are priced differently, with larger containers generally costing more.
Transactions in High Season
Just like any other sector, The shipping container industries have busy and slow seasons. This is the time of year when shipping demand increases rapidly, affecting factors such as container availability, the global supply chain, ship capacity, and even delivery prices.
The high season occurs between July and December or even February. However, some months such as November and December have the highest demand due to the impact of the holiday season or certain holidays. Many companies prepare their merchandise for the upcoming holiday season.
Additional Sea Freight Costs
Some transportation costs, such as demurrage, detention, and even customs inspection costs, cannot be anticipated. These costs are usually not included in the price of shipping containers, although they have a significant impact on the overall shipping cost.
Although these costs are usually beyond the control of the shipper, the shipper must take all steps to avoid incurring these costs. This can be achieved by collecting all the paperwork from start to finish. Even small discrepancies can raise suspicions and lead customs to inspect the shipment.
Packages can be inspected both at the origin and at the destination. Keeping all of these considerations in mind can help reduce the chances of your shipment being held and incurring delay fees.
By planning your shipment, you can reduce the risk of making costly mistakes. You will have plenty of time to get everything on schedule and organize your belongings ahead of time.
Emergency Bunker Surcharge
Shipping services can experience many difficulties while traveling, such as diversions due to high traffic, last-minute route changes, too many disruptions, and so on. Unfortunately, when such things happen, shipping companies can charge various additional fees. This can result in unexpected losses that you cannot control.
One of the taxes that addresses the rising fuel costs is the Emergency Bunker Surcharge (EBS) or emergency fee that is only discovered at the last minute. This causes a sudden change in the final shipping price of your container. So, many people believe that this additional fee is necessary to cover the operational losses of shipping due to rising fuel costs.
Truck Shortage
Truck driver shortages are a very common logistics problem for many shippers. When there is a shortage of trucks, shipping prices skyrocket. Rates also tend to increase as capacity is depleted and demand increases. As a shipper, you may have to pay a large amount to secure a truck driver slot.
Planning your shipments in advance and having a backup plan can help you avoid truck shortages. Preparing or purchasing a truck in advance will save you time and money by avoiding last-minute truck shortages.
Destination Port
Customs taxes are another factor to consider, especially when delivering containers overseas. At the port, the country where the shipment will be unloaded will charge customs duties and other service fees. These additional costs can include:
- Container inspection fees
- Quarantine fees
- Insurance coverage
- General tariff increases
- Internal shipping fees
- Terminal service fees
- Port service fees
To avoid going over budget outside of your financial planning, you can contact the shipping company in advance to see how much it will cost.
Insurance
While not always required, insurance costs for the shipment can add to the price. The cost varies based on the value of goods being shipped and the risk of loss or damage during transit.
Cargo Type and Handling
Hazardous materials or oversized goods require special handling, permits, and transport, which increases shipping costs. On the other hand, heavier or bulkier goods typically cost more to ship due to the extra space or weight they occupy on the shipping vessel.
Conclusion
Understanding these factors can help businesses and individuals make informed decisions when arranging shipping container delivery. It will also allow for better cost planning and choosing the right shipping options for their needs.
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