shipping price

What Drives the Price of International Shipping

In today’s global market, companies and individuals need to understand international transportation costs. Several factors influence the cost of shipping different volumes of freight.  

In this article, we will look at these variables and what needs to be taken into account when determining these costs. We will also examine how freight forwarders, such as leading company Ursus Forwarding, manage these factors to ensure efficient services.

Distance and destination

The geographical distance and availability of the destination significantly impact the cost of delivering goods. Generally, the further the destination, the higher the price. 

For example, sending a parcel from Riga to Helsinki will be cheaper than sending the same parcel to London. In addition, distant or inaccessible destinations often incur additional charges because they require extra effort or special transport.

Weight and size of freight

The physical characteristics of the shipment are crucial for pricing, as the transportation costs are calculated based on the weight and size of the cargo.

The heaviest and largest consignments are more challenging to transport and take up more space, thus increasing costs. For example, delivering a 2-tonne consignment will be much cheaper than delivering a 20-tonne consignment.

sea freight

Mode of transportation

The choice of forwarding mode – air, sea, or land delivery – significantly impacts the price. Air transport is usually the most expensive as it is faster and more efficient. Sea freight is more cost-effective for larger and less urgent shipments. By contrast, road freight balances cost and speed of delivery, especially for intercontinental shipments.

Customs duties and taxes

International freight forwarding is subject to customs duties and taxes, which impact overall costs. These charges vary depending on the country of destination and the type of goods being shipped. For example, when importing exclusive goods, duties will be higher than simpler ones. Shippers should be familiar with these charges to avoid unexpected costs.

Additional fees and surcharges

In addition to the basic costs, you may have to pay other surcharges for your shipment. These may include fuel surcharges, insurance charges, and handling fees. 

Unique services such as expedited delivery, tracking, or secure packaging also add to the cost. These extra charges vary widely depending on the carrier and the level of service required. 

ursus forwarding

Case study of Ursus Forwarding

The cost of international transportation can provide insight into how a freight forwarding company operates. Ursus Forwarding demonstrates seamless coordination in global logistics with its specialized skills in road, sea, air, and rail freight. 

The company’s ability to handle bulky cargo and deal with abnormal situations is a testament to its expertise in cost management. Cooperation within its network of branches allows it to find cost-effective solutions tailored to the specific needs of its customers.

In conclusion

Understanding the factors influencing the cost of international shipments is essential to effectively managing your shipping needs. This can help you make informed decisions on freight forwarding costs and budgets, whether you are a business or an individual. 

Freight forwarders like Ursus Forwarding exemplify the importance of expertise and adaptability in offering competitive and reliable international shipping services. Shippers must understand the factors affecting international transportation to efficiently and economically ship goods abroad.