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Estimating the Near-Perfect Container Shipping Cost [Hint: Use a Container Shipping Calculator]

Published by Joe Webster.

Estimating the Near-Perfect Container Shipping Cost [Hint: Use a Container Shipping Calculator]

As international trade grows, shipping rates continue to rise. But how much do you know about this price?

Moving rates are always on the move, affected by various factors: the size and type, the origin and destination of the cargo, whether or not you need customs clearance and other variables. That's why it's essential to use a reliable calculator to estimate your load fee accurately.

Rates can be confusing to understand. A few queries can keep you itching, like:

  • What is the cost per container?
  • What are the factors that influence the price?
  • How do I determine the potential expense?
  • And, how can you get a better deal?

In today's blog post, we'll look at rates and how you can get the correct estimate. So, if you're considering using a container for your next shipment, read on!

How Are Moving Prices Calculated?

The price internationally varies and depends on many things, like the distance between countries and the size of the container.

measurements of something

Generally, it charges around $1,378 - $6,894 if you want to ship a 20ft to a new destination. However, we will give you an idea of how rates are calculated. Companies calculate their charges using five factors, which we are going to discuss below:

The Volume of the Goods

There is not just one way to move your belongings. If you are using sea freight, the size of your belongings is the most crucial factor. But if you are using air freight, the weight of your belongings matters more.

Type of Hauling

How your belongings get to their destination will affect the price and how long it takes. If you want your things to get there quickly, you will have to pay more for air freight. Sea freight is much cheaper if you don't mind waiting a little longer.

The Destination Port

Some taxes and customs duties are unavoidable when importing goods into a country. The amount you have to pay will vary depending on where the goods arrive.

transporting goods by ship

The Time of Year

International delivery has times when it is more popular. These are called peak seasons. The most popular time is during the summer, between August to September.

Another busy time for moving is between January and February. During these times, demand is higher, and prices are usually higher too. If you want to save some dollars on prices, try avoiding these peak seasons.

The Distance

If you are shipping your belongings to a different country, it will charge more than if you are delivering them within the country. The price will also depend on whether the company will haul your belongings from door to door or you have to make some effort. We recommend you choose a firm that offers door-to-door services, as this will prevent any headaches later on.

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6 Factors that Influence Fees:

The factors that influence fees are:

Destination

There are different ways to transport your product. The expense will depend on the model you choose and the distance between the two points. However, most carriers have zones that determine how much you will pay. It even makes it easier to understand the expenditure if we compare it with a pricing strategy based only on distance.

a big ship

There are eight zones for packages in the US. The closer to the starting point, the lower the fee. If the box moves further away, the fee gets higher.

Weight or Size

The fee for your package moving will be based on either its weight or the box size. If the package is heavier, then it will cost more to haul. If the container is more extensive in terms of height, length, and width, it will charge more to move because it takes up more room on the vehicle. So, choosing the right packaging boxes is essential for retailers. If you choose wisely, you can save on packaging materials and prices.

Delivery Speed

If you need your package delivered quickly, it will cost more money. That is because the faster you want the package delivered, the more it charges. However, it is a problem for small and medium-sized eCommerce stores because they cannot compete with the prices that giant eCommerce stores like Amazon offer. Customers who are used to Amazon's fast speeds will expect the same from other stores.

Packaging Materials

The type of packing material you choose can affect how much your expenditures are going to be. Retailers spend about 10% of the product's price on the packaging.

You need to choose your packaging carefully. Some e-retailers order too large boxes, thinking they will get a discount for buying in bulk. But if you are using a carrier that charges by the size of the package, this can be more expensive than it needs to be.

You need to choose high-quality packing materials if you want to avoid product damage or returns. It will even save you money in the long run since you won't have to spend as much on rates, and it will also protect your reputation so that future sales are not affected.

Warehouse

Other costs are associated with moving your product. Before the order is sent out in a ship, truck, or plane, proper preparation.

a guy looking on his phone

Some tasks take a lot of time in a warehouse. It includes putting boxes together, stuffing material, securing them with taping, etc. Using machines or robots to do this task will also affect the expense as these machines require maintenance.

Moving Mode: LCL vs. FCL

LCL

If you don't have a lot of goods to haul, you may not need to use an entire receptacle. Companies have come up with a way for people to share the space of a single receptacle when they have smaller amounts of cargo. Although also known as (LCL) 'Less Than Container Load.' However, your shipment will be combined with other cargo to fill.

Reasons to Choose Less than Load

It is the cheapest way to move things. Hiring a whole container doesn't make sense if you don't have a lot of stuff. The stuff inside will move around and get damaged if it moves.

LCL is an excellent way to move your things if you don't have many things to ship. It is a common way for students who will be gone for only a year. If you have more than 15 cubic meters, you should switch to FCL because it will be more economical.

FCL

It is when one customer uses the entire container for cargo. It is a good value because it is cheaper than the company charges you per cubic foot.

An FCL is a type that is safer and faster. With this type, your belongings will only be opened when they reach their final destination. With an LCL, belongings are unloaded and reloaded for each customer, leading to damaged or lost items.

Reasons to Choose Full Container Load

When you send goods, it is usually better to send them in an FCL (full container load) instead of paying for the space your goods will take up.

cargo crane

FCL is faster because you're not sharing with other people's cargo. That means that there is less waiting involved. Your belongings don't need to be loaded and unloaded at each port. They must be placed on a truck once it arrives at your new destination.

Your belongings will be safer if you use FCL instead of LCL. There is more risk involved with LCL because the goods are handled more often. It means they are moved from port to port, damaging them. FCL is a better option if you have to import your things carefully.

Sea or Air Freight: Which One is the Best?

Another significant factor in rates is your choice. It would be best to think about what is most important to you. Your choice will depend on how quickly you need your belongings and how much you want to spend.

Why Choose Sea Freight?

Sea freight is cheaper than air freight. If you want to save money, this is the best option. Moving by sea is very environmentally friendly. It also will result in fewer carbon emissions.

international trade vessel

Why Choose Air Freight?

Cargo planes are faster than ships. If you want to send your belongings quickly, cargo planes are the best way.

It will usually take 1 to 3 days for a plane to go from one global destination to another. It is much faster than a ship taking 32 days from the UK to Australia.

cargo on large metal structure

Different Sizes At a Glance

There are three sizes available. Let's discuss them in detail:

20ft

The 20ft container is the most popular type. It hauls heavy machinery, raw materials, and cargo to ports. The 20ft is also famous for intermodal delivery because it is light and easy to move around.

A 20-foot can hold the things of a three-bedroom house. It includes beds, furniture, TVs, fridges, and storage boxes. A 20-foot one usually has about 33 cubic meters of space, but only 25-28 cubic meters can be used.

40ft

A 40-foot container is better value for money than a 20-foot one because it has twice the amount of space. If you want to move to a house with four or more bedrooms, a 40-foot will be required.

Or, if you want to bring your car with you when you move, you will need a 40-foot receptacle. It will give you enough room for your vehicle and the other things you are moving.

A 40-foot can hold around 67 cubic meters of space, but only about 54-58 cubic meters can be used.

The 40ft container is widely used because it can carry twice as much cargo as the 20ft. If it is overweight, the user can be fined. That's why people prefer to go for a 40 ft one if they want to carry many goods.

40ft

A 40ft high cube container is used to move cargo taller than 8.1ft. 40ft high cube is the same as a 40ft one. However, it's just a little bit taller. People usually carry consumer goods.

Insurance: Why Is It Important?

a guy showing something on paper about insurance

When moving overseas, you must purchase insurance. It is because the expense is expensive.

You may be thinking of saving money by not purchasing insurance, but you should not do this. It is vital to have insurance if something happens to your container while it is being shipped. In the following, we will discuss some of the benefits of getting the insurance:

  • It will protect your belongings from any loss or damage that may occur. It also includes damage or loss caused by external factors, such as cargo abandonment, appropriate packaging, and customs rejection.
  • If your cargo is damaged or lost, general average coverage will help to pay for the damage. It even means that the other cargo owners transporting goods on the exact vehicle will have to pay you for the damage to your property.

Cargo insurance is based on how much your belongings are worth. It means the insurance price will not be as high as you think.

Is International Moving Safe?

The international industry has made the process of moving abroad easier. The industry now uses different types of hauling to move goods.

It makes it safer and more secure. Steel ones are used in this process. Things can quickly move from one place to another by land or sea dispatching. In this era of digitization, customers can even track their belongings because most companies provide an ID which makes tracking easy.

Container Rates

You don't need to buy a container, but some people choose to buy one because they can use it in many ways.

Containers are used for more than just delivery. People have turned them into the following things:

  • Garden sheds
  • Art studios
  • Swimming pools
  • Trendy offices
  • Mini homes

A container will last about 10-12 years if it is used in the ocean. However, it can also last 25-30 years if you look for the proper maintenance. They are windproof and watertight, but they can rust over time.

The cost of a new 20ft is around $5,000. The price for a secondhand container will be less than $1,200 to $2,500.

If you want to buy a 40ft one, these usually charge $5,306 for new and $2,600 to $ 3,300 for secondhand.

a sea port

Estimate Your Price by Yourself

There are various things to consider when you are thinking about moving. One of the most important factors is how much it will cost.

You should never take a company's quote for granted. It might be very different from what you expect. That's why it's a good idea to use a calculator to get the estimated budget by yourself.

You can compare different companies' rates to find the best deal. But remember, these rates are only estimates. They will help you decide, but they might not be exactly right.

Advantages of Using a Calculator

  • The calculator will help you choose the company that will deliver your belongings the fastest and within your estimated budget.
  • You can save some dollars by calculating all the expenses in advance.
  • You can use the calculator to determine the estimated budget of multiple companies and choose a reasonable one.

Conclusion

Container shipping is a viable way to transport goods both internationally and domestically. There are many benefits, including the fact that it is an affordable option for businesses.

Also, it is a very efficient way to move goods, making it an attractive choice for companies that want to save time and money. Several different types can be used for moving, each with advantages and disadvantages.

The rates are constantly changing, and it can be challenging to keep track of all the factors that influence them. However, an auto calculator gives you a good idea of what your cargo will charge.

We hope this article has given you some knowledge about what affects rates.

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Joe Webster always knew the auto transport industry would be a great career option. And with decades of experience, Joe is now an established consultant for A1 Auto Transport.

Joe was born in Santa Cruz, California. During high school, Joe worked as a mechanic; a job continued to work part-time during his bachelor's degree.

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A-1 Auto Transport is a disclosed agent for the following shipping companies:

CSI Logistics
435 Division Street
Elizabeth, NJ 07201
FMC 22206
Intl Cargo
45 Campus Drive
Edison, NJ 08837
NO. 17858N
Trans Global Auto Logistics, Inc.
3401 E Randol Mill Rd,
Arlington, TX 76011
NO. 018191NF
CFR Rinkens
15501 Texaco Avenue
Paramount, CA 90723
NO. 013055NF
ABC Worldwide LLC
2840 NW 2nd Ave #105
Boca Raton, FL 33431
NO. 025472F
ShipYourCarNow LLC
1160 South Rogers Circle Suite 1
Boca Raton, FL 33487
NO. 025646
Merco Air & Ocean Cargo, Inc.
6 Fir Way
Cooper City, FL 33026
NO. 021869F
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