International Shipping – The Various Factors Influencing Shipping Costs

222International shipping is always taken to be a costly affair. There are a number of factors which affect international shipping rates. Given below are some parameters and which play a role in determining the cumulative cost of overseas shipping.

Demand for shipping

International shipping companies change the rates of shipping depending on the demand for shipping to a particular place. As a thumb rule, heavier the traffic a shipping company gets to a place, lower will be the cost of shipping. The converse is true as well. Sometimes, remote countries which are located closer to the origin of shipping cost more than a distant place which experiences heavier demand for shipping.

International currency

International shipping companies carry out their transactions in American dollars since it is the standard medium of exchange in the world. So, currency fluctuation has a say in fluctuating the cost of shipping. Rates are fixed depending on the latest currency exchange prices which in turn depend on the currency of the country where goods are being shipped to.

Terminal fees and custom charges

Custom charges of every country depend on various parameters within the country. Some pockets of the world such as the European Union have fixed custom charges. Another fee which is levied when the ship docks in the port is the terminal fee, which is borne by the international shipping companies. Terminal fee also has to be paid at the port of origin. Since the cost of shipping is inclusive of all these charges, the charges levied in the destination and origin port greatly influences the overall cost of shipping.

World economy

International shipping rates fluctuate based on fuel charges and cost of other resources involved in shipping. Since these factors are a direct result of changing economy of the world, it is imperative that they have a say in the cost of shipping.

Type and capacity of containers

Containers are the boxes in which cargo is loaded. Shipping companies which use larger containers charge lower shipping rates because they can store more goods in the available space. They have a greater freedom to undertake cargo consolidation because of the size of the container. Since shipping companies are able to carry more goods, the cost of shipping becomes less. Another aspect is the filled capacity. This refers to the volume of container filled with cargo. If a ship has to set sail with only half its capacity, cost of shipping is very likely to be higher.

Time of booking

The sooner you book your berth in the cargo ship, lower will be the charges levied. Last minute entries are usually charged more if the ship capacity is full. However, if a ship sets sail with half load, then it tries to fill up the rest of the space by offering heavy discounts on shipping. Nevertheless, you cannot always bet on getting a discount because customers cannot know the filled capacity of a ship. So, it is safer to book well in advance and save some money on overseas shipping in, they can fulfill all your requirements at very low cost.

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