Various factors are put into consideration in determining the shipping charges. Some of the factors are constant whereas others change with time. The rates, however, differ depending on the cargo shipping company and the ship. An extra charge is incurred for reassurance of safe and good delivery. However, in other situations, the delivery is not guaranteed. In such instances, the rates differ with the company of shipment and the vessel. To get a company with cheap rates, it is a recommendation that one considers vessels with a good history of safe shipping. Some freight dealers, however, act as brokers and charge more for shipping that the required amount.
Factors Affecting the Freight Shipping Rate
Origin and Cargo Destination
Costs vary with the distance that the cargo requires being shipped. The rate is high when the distance is long and low when the distance is short. In matters of the distance, the freight company will also consider the type of cargo in transport. There are two kinds, a dry cargo, and reefer cargo.
In freights, there are charges for a shipment deemed mandatory. Usually, they are referred to as surcharges. They apply to every shipment conducted. The charges are identified with names.
- Bank adjustment factor; the costs account for the resources required by the ship for transport like oil. The charges are not constant and will keep changing quarterly depending on the price of the oil. They have a major role play in rates.
- Terminal handling charges: depending on the item of shipping, the charges are there to cover the service of shipping to and from the vessel. At times the clients prefer transport to a certain distance after shipping. It has a great role on the prices. Getting the cheapest freight shipping is easy if one decided to handle the cargo from the ocean to the destination.
- Documentation charges: are costs incurred in support of shipping of the cargo from and to the destination. The services are included in the freight shipping rates.
Value Added Charges
Some charges affect the rates because they are usually as per the client’s instructions. For example, there is container cleaning; also, some goods require a regulated atmosphere, tight security or a cold environment. It affects the rates.
Avoiding High Freight Shipping Rates
To avoid being exposed to high rates, the client should consider comparing the rates of various shipping companies. Moreover, they should request an invoice indicating the rates and the various costs described. Asking for reference from friends also helps in shipping. Seasons affect the rates a great deal.