With shipping rates increasing massively over the past few years, sea freight has become one of the most significant contributors to worldwide trade. Before you choose shipping services for your transportation needs, you must first learn about the various factors affecting the prices. If you don’t want to be in losses, you need first to gain proper knowledge regarding the process. In this blog, we will help you get the knowledge regarding all the information affecting container shipping rates:
Peak Season Surcharge
Like other industries, the shipping industry also faces peak season demand, such as seasonal changes and holidays. Due to many factors, the shipping industry mainly faces a high surge in November/December that lead to increased container shipping rates. This increased demand for shipping services overwhelms the entire global supply chain and vessel capacities. First, they increase their freight rates during the peak seasons to manage the costs. The shipping services also add a peak season surcharge to manage their additional expenses in some instances.
Emergency Bunker Surcharge (EBS)
Shipping lines implement several surcharges for their services to cover the additional losses during the journey. An Emergency Bunker Surcharge (EBS) is another surcharge used by them to tackle the rise in fuel prices. In certain instances, shipping services face several obstacles during their journey, such as rerouting due to heavy traffic, last-minute route changes, too many stoppages, etc. However, this may also lead to unexpected losses you have no control over. Shipping company faces severe backlash from the shippers to pay unanticipated amounts.
One of the biggest hurdles during the logistics journey is trucking shortage. In a high-demand period, the shipping services face trucking shortages to tackle the unexpected surge. These unprecedented losses due to truck shortages can increase ocean freight charges. The only way to avoid this extreme trucking shortage is to book your order earlier. This will save both your time and money by avoiding last-minute trucking shortages, as you will be a priority for your shipping services.
General Rate Increase (GRI)
In some instances, the shipping lines impose General Rate Increase (GRI) on the shipper’s goods to cover the losses due to general changes in the freight expenses. Usually, this charge is applied only once a year. The carriers have complete control over when, where, and how much GRI charges will be imposed on different goods. That means you have to pay for the increased prices if the GRI applies on the same date you finalize your shipment deal.
Additional Freight Shipping Costs
Do you know there are several other expenses beyond carriers’ control, such as demurrage, detention, or customs delays? All these instances can significantly impact the freight shipping costs. The best you can do to avoid such extra charges is to be very careful while shipping the goods and check each step carefully to avoid any kind of detention or penalties for their goods. Avoid even the slightest mistakes during the documentation step to avoid additional charges. Further, advanced shipment planning will also save you from additional costs due to unexpected delays and fines. With a reliable company like SLR shipping services, you can quickly reduce the container shipping rates to a great extent.