What Factors Will Affect the Cost of Cargo Shipping

What Factors Will Affect the Cost of Cargo Shipping

DATE: 09/28/13

Cargo shipping has become increasingly common for individuals and businesses as we live in an increasingly connected and increasingly mobile society. Today, it is easy for a business to have customers internationally and to send its products around the globe, since interested customers can quickly connect with the company via email and the Internet and Skype or VOIP service.  It is also easy for individuals to relocate to a different part of the world for school, for retirement or just to get away from it all. When a business does have international customers or when families are spread apart across the world, there is a lot of need for a good shipping service. Both individuals and businesses may take great advantage of cargo shipping services to send both large and small packages domestically and internationally.  However, when anyone is sending any type of shipment- no matter the size or its destination- the shipper needs to have an understanding of the expense associated with sending the package. The only way to get a truly accurate idea of what shipping a package will cost is to talk to the shipping company that you plan on using, to give them the parameters of the shipment and to ask them to give you the cost of the different shipping methods that are available to you. Shipping costs can be hard to guess without having an accurate estimate from your shipper because a lot of different factors can affect how much shipping costs. For example, some of the many factors that can have a determinative impact on the cost of your shipment include the following:

  • The distance that your shipment needs to travel. If you are sending a package halfway around the world, this is likely to be more costly than if you send a package to the next state over. However, you can mitigate and minimize the added expense of a distant shipment by choosing to ship with a company that has a regular route in your destination area and/or that has a hub or location in that area.
  • The size and weight of your shipment. Larger packages and items that are more bulky and heavy are going to cost more to ship than smaller packages.  You can mitigate this difference, though, by choosing the right shipping speed and shipping method. For example, barrel shipping may be a cost effective way to send large shipments of many items.
  • The customs rules and import taxes in your destination country. In some locations, taxes will need to be paid on the shipment that you are sending in to the country.
  • The shipping method and speed. Generally, the faster you expect your item to arrive to its destination, the more costly you can expect the shipping of your item to be.  Air freight, for example, can allow you to get your item delivered very fast… even the next day in many cases. However, you’ll pay a premium over ground shipping for air freight.

Your shipping company can explain how these and other factors will affect your shipment costs.

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