Understanding the overall international shipping Costs process is a difficult task. If you are shipping globally for the first time, you need to learn about the various charges adding to your shipment. Apart from the basic freight charges, you need to consider many factors to save you from extra costs. Although you will get all these rates quoted on the freight forwarder’s list, you must still be aware of them in case left out. In this detailed guide, we will help you understand the various charges added in international shipping to help you know what you’ll pay for:
Freight Associated Charges
The freight associated charges mainly include maritime freight charges. The maritime freight charges are the primary charges added to the invoice when choosing a freight forwarding company. It covers the transportation fee that varies according to the chosen routes and freight shipping companies. It covers the expenses while transporting consignments from the port origin to the destination port.
The maritime freight charges depend on the distance and destination. Small or low-volume shipments also face consolidation charges by freight forwarders. Freight forwarders charge consolidation charges on LCL goods to cover the expenses while consolidating shipments to the containers.
Carrier Related Fees
Besides the basic freight charges, shipping companies add additional charges to cover the expenses during the process due to fluctuations in fuel prices and other shortages due to peak seasons. When shipping goods International Shipping Costs, you need to be aware of all these carrier-related fees to help you prepare your estimate for the shipping. Have a look at the various carrier-related charges added to your shipment cost:
Bunker Adjustment Factor (BAF)
Most commonly known as Bunker surcharge, a BAF is added to compensate for the fluctuations in fuel prices. A BAF depends on the route chosen by the shippers for the different destinations.
Emergency Bunker Surcharge (EBS)
Both EBS and BAF are used to compensate for the fuel charges. However, the EBS varies on the time and situation when it is announced. EBS is added to the last minute in most parts of the world, while in countries like the US, it is added 30 days in advance.
Currency Adjustment Factor (CAF)
A currency adjustment factor (CAF) is added to compensate for the heavy fluctuations in currencies in the world. When a country is facing massive volatility in currency, freight forwarders add a CAF to their quotes to cover the risks associated with the currency fluctuations.
Peak Season Surcharge (PSS)
The freight forwarding industry faces a heavy peak season between July to October, which helps freight forwarding compensate for the additional operational costs that occur during the peak season. However, it impacts the overall shipping budget significantly as the freight forwarders already charge higher during the peak seasons.
Your entire shipment cost can affect significantly by the shipping zone you choose. If your shipment destination goes through the routes where additional charges occur, you need to face zone-specific charges. Apart from the total distance of your shipment, your chosen shipment type also affects the prices. If your cargo goes through high-risk zones, you need to pay for charges accordingly.
You often have to face delay charges from shipping companies to use their containers for an extended time. Many delays are beyond the control of shippers, but with due care, you can mitigate the risks on the way. The various ways shippers can reduce risks include congested ports, yards, or terminals. The most common delay fees include demurrage, detention, warehouse, per diem, and storage fees.
To get your goods to pass safely from the customs clearance process, you need to pay customs fees to the freight forwarders. Your freight shipping partners add customs fees to compensate the costs incurred for fulfilling the specific process and procedures. The charges differ from country to country and their set of norms. To avoid getting a hole in your pocket from the unexpected freight bill, get all the knowledge of cost before shipping goods globally on SLR shipping services. We help you get a clear and transparent view of our quotes to save you from unexpected bills.