Container Shipping Costs: All You Need to Know

This is the right article if you are new to the industry and want to determine the costs. In this article, we will cover everything and anything you need to know to feel confident when needing to move a container.

Moving a container is not a very straightforward process. There are several aspects to it that you will need to get your head around before taking the next step.

You may know how the process works but may not be completely aware of the expenses involved. We endeavor to answer all of your questions in the information below.

The Expense of Moving

As you may know, every country has different expenses. There is no one-size-fits-all, and that is why it is imperative to do enough research so that you can best prepare yourself for the process.

Moreover, due to the economic climate that we find ourselves in, there has been a dramatic increase in costs. Our world has undergone many disasters over the past few years, which has inevitably negatively impacted fees.

Are There Any Extra Fees Involved?

Factors Involved in Delivery Prices

Many different things affect the cost, and you may not be aware of all the factors that influence the ocean freight market. Despite considering volume, route, ports, and carrier charges, five other aspects will affect the price when considering prices.

So, to answer the question, yes, container shifting may involve extra fees. It is always best to plan ahead of time for these, should they occur, so you do not delay your shipment. Delaying your shipment will have a snowball effect further down the line and will result in further complications.

1. General Rate Increase

The General Rate Increase, also known as GRI, is the ocean freight prices that different companies adjust. The GRI, implemented by firms, is a means of helping carriers recover from seasons that do not bring in much work, also known as downward market movements.

The GRI rate, implemented by the firm, is only done if the business is slow and is usually only done once a year. However, it is not uncommon for the GRI price to surface a few times a year if the global economy is struggling.

Moreover, firms implement the GRI depending solely on the company. The factors that firms consider when considering implementing a GRI include the route it will affect and how much it will affect the route. For example, in the US, agencies will need to give a 30-day notice to companies when they are planning to implement a GRI. Therefore, if a customer has placed an order for their cargo to be shipped before the agency implements the GRI, then the rate will not affect that order.

2. Moving to High Seasons

The term that comes to mind is supply and demand. So, for example, if the ocean freight season is fruitful and thriving, prices will increase. Planning is an excellent way to ensure that these costs do not become a surprise for you.

What has been considered the high season in container sending is from July to November or December. The most obvious reason is that organizations will be repairing for the holiday season, and the demand for delivering items will be high. There may also be a peak season surcharge that companies may implement to cater to the extra amount of logistical work required for that season.

3. Emergency Bunker Surcharge

An Emergency Bunker Surcharge (EBS) occurs when there is a rise in fuel prices. Unlike the GRI, the EBS can be implemented at the very last minute and can be pretty inconvenient for agencies needing to fork out extra money to cover expenses. In addition, doing so will undoubtedly cause a dent in the budget.

4. Trucking Storage

Within the US, there is a massive shortage regarding the availability of trucks. As you can imagine, this will increasingly negatively impact supply chains.

Accordingly, ocean cargo prices will rise in response to the shortages of trucks. The benefit of paying a fee for trucking storage is that you are guaranteed a truck in which you can store Freight. If you cannot secure a truck, expect disruptions to your distribution.

To prevent this, plan your route ahead of time or look for alternative ways if needed. Also, having a contingency plan will be highly beneficial.

5. Extra Ocean Freight Prices

Be sure to plan for extra ocean costs, such as demurrage and detention, or fees from customs inspections, as there is no way of being able to tell if this is taking place. It is best to have the funding available instead of disrupting your shipment due to a lack of planning.

However, there are also specific steps you can take to ensure that you do not need to pay extra price as much as possible. For example, ensure that you have completed all of your documentation correctly and on time to prevent having to pay additional fees or fines. The last thing you want is for your ship to stay at customs because they are worried about something in your paperwork. Having to pay extra fees will result in having to pay delay fees on top of this.

Planning your shipment ahead of time is another way to avoid having to pay extra fees. This way, you will give yourself time to ensure that every part of the process is correct.

How Do Firms Calculate the Price?

Besides the extra fees that may occur, consistent factors influence the amount of money you will need to spend on your container. These include the type of cargo needing to be shipped, the mode of hauling, the weight, the distance the shipment needs to go, and the popularity of the shipment. Below are further descriptions of the different aspects taken into account when calculating fees:

Goods weight

Within sea delivery, the most important thing is the dimensions of the goods you want to haul. However, with air freight, the most important thing is the weight of the cargo. So, as you can tell, it depends on what you want to utilize.

Mode of Delivery

The type of load you want to use will determine the price you will be paying. For example, sea moving is much cheaper than air one(five times cheaper, to be exact). Moreover, the mode of hauling you use will determine the time taken to ship the goods. For example, air hauling is a lot quicker than ocean one.

Journey Distance

The distance of the journey will very much determine the charges. The further you want to haul it, the more you will have to pay. Also, the price will go up if you need a door-to-door shipment.

Destination Port

Different countries will have different rates when it comes to customs and taxes. You can only find out what the rates are by doing your research.

Time of Year

As mentioned earlier, there are seasons for delivery when the rates will be higher due to demand known as peak seasons. Due to higher demand, prices will go up, and limited space will probably be available. So, if you can avoid shifting during peak seasons, then do so. If not, then plan and expect an increase in rates.

Insurance

Most people will take out insurance to cover their cargo, and in fact, this is a wise idea. You will never be able to plan for every bump in the road, so if it is insured, you can rest assured that insurance can replace your goods in the event of a disaster.

The type of goods that you want to ship will determine the amount of money you will have to pay for insurance. For example, if you are moving rare antiques, expect your insurance to be pricey. But, it will be so worth it if something happens to it.

However, there are things that the international industry has implemented to ensure a safer journey for your goods.

Intermodal Hauling

Due to companies utilizing steel containers, your Freight can journey via different modes of dispatching. This way, the company can move your shipment with a very smooth transition between sea and land shipment. The best thing is that agencies will not need to unload it each time.

Tracking

Just as you can track your Amazon delivery, you can track it when being shipped. Tracking is another safety measure by the international industry to reassure customers.

Regulation

The International Maritime Organization (IMO) is the organization that regulates moving on a global scale. The IMO ensures that each firm adheres to all regulations, which provides safe cargo delivery. But, of course, this can't account for natural disasters.

Therefore, although we cannot predict every hiccup in the road, we can plan as much as possible to ensure that there is the slightest chance for things to go wrong. Your future self will thank your present self for taking the initiative to ensure your Freight.

What Documentation is Required When Relocation?

Certain documents are required when entering customs for it to go through customs.

• Commercial Invoice
• Certificate of Origin
• Bill of Landing
• Buyers Purchase Order
• Packing List
• Shipping Bill Export License
• Bill of Entry

Suppose these documents are not readily available at costumes. In that case, you can expect to delay your journey or have your container detained until customs are happy to clear it. Documentation is a crucial part of the process, and it can be planned ahead of time to ensure the smooth sailing of your cargo.

In September 2021, it cost more than $20,000 to move from China to the USA. In June 2022, it cost companies $9,500 to do so.

Therefore, we can easily now say that charges depend significantly on the country to which you want to dispatch your cargo, the weight of the shipment if it is peak season, the distance of the journey, and the mode of hauling you want to pursue. However, we are now aware that these are not the only factors determining the amount of money you are likely to spend on fees.

At A1-AT, you can rest assured knowing that we will deliver it with the utmost care. With our knowledge and expertise, you won't have to fork out copious amounts of dollars to ensure the safe hauling of your goods. Instead, we are here to make the process easier and to give you a reason to trust the process.