Do you ever think what is included in overseas transportation costs? If you are an importer, maybe you are already aware of what shipping costs consist of: the cost of the product, the cost of transportation and the cost of duty. No matter if you are new in overseas transportation or you already have an experience in it, we can help you to understand better the overseas transport process. We can provide you with an overview of overseas transportation costs and how to calculate the price.
If you want to understand better overseas transportation costs you need to know all the steps in international shipping. Shipping costs are based on the steps of the international shipping. If you want to understand better the whole process of transportation you can look for professional help on http://ksemoving.com/. You will get a better insight into all the part of international shipping and ways of transportation. So, you can also learn for which parts of transportation you pay for. Professionals in international transport can help you with all steps, so it can be less complicated for you.
What is included in overseas transportation costs?
When you trade overseas, no matter of a way of transport: by sea, air or road, shipping costs are based on following elements:
- Export pick-up
- Export customs clearance
- Origin handling
- Import customs clearance
- Destination handling
- Import delivery
But, be aware that not all elements are included in overseas transportation costs for every contract. That’s why overseas transport depends on the deal between you and your supplier. Also, price depends on how much cargo you have. We cannot tell which costs are always included in whole price of overseas transportation. But, we can help you which costs are typically included and when.
When it comes to overseas shipments you can do it in two ways: sea freight and air freight. What will be included in your shipping cost, depends on the specific terms between you and your supplier.
How prices are determined for overseas shipments
The price for overseas shipments (sea and air freight) depends on the route and the type of goods. The reason for this is the limit of space – aircraft are usually limited by weight. So, the heavier the load, the price is bigger. So, if you need to transport overseas heavy lift cargo it can be very expensive. Also, you can do it just with sea forwarders. So, in this case you need to find the best movers and sea forwarders at an affordable price. With the right equipment and good price you can transport overseas all cargo that you need to ship.
Sea freight costs
With sea freight, you can ship your goods in two ways. You can ship smaller shipments and for this type of transport, you can share a container with others. So, it is a cheaper option for overseas transportation. Prices for this type of shipment are based on the volume of goods. That means bigger shipment – higher price!
Another type, full container load means that you are shipping stuff to fill up the entire container by yourself. The price can be different for this type of shipping. Manu things can have an impact on the price: the capacity of container ships, currency, oil, and other fees, risk, and peak season. So, if you need to know the exact price you should contact your moving overseas company for transportation quotes. Because they are changing month by month.
The summary of the influences on the overseas transportation costs
The most important thing to remember is that overseas transport prices do not always include everything. For example, sometimes customs clearance is the part of the price and sometimes isn’t. Also, special handling isn’t always included in overseas transportation costs. So, if you need a truck with a lift or something else, you should check if this service is included in total price or you can expect additional expenses.
Also, overseas transportation costs are based on the agreed incoterms. Including specific trading terms, and other costs for all the other parts of the shipping process. Price can be related to your specific goods or if you are importing goods as a private person.
That’s why it is the best to check your costs for overseas transportation with the forwarder.
Tips for reducing overseas transportation costs
Choose the best mode of transportation
When you are choosing the best way to transport your goods, you should think about the type of your goods, travel distance, and time of delivery. It is important that you know which type of transport will be the most cost-effective.
For example, sea freight is often cheaper than air freight, especially when you need to ship goods internationally.
Knowing transportation costs for international shipping will help you to understand the best choice for your company based on budget and deadline.
You can use a mix of transportation
If you need you can use a mix of transportation. Combination of ocean, air and road transportation can reduce your costs. In case that sea shipping is slow for you and you are worried about time you can combine sea with air freight where you can pay less.
Consolidating goods might cost you a bit more time in transportation but the price can be cheaper. Many smaller shipments you can consolidate into larger shipments which can bring you cost savings.
Supply chain visibility
If you want to understand better all the influences on the overseas transportation cost you need to understand each level of your transportation chain. Also, if you have some problem during the transport you will know how to react and this will save you money and time.
Be sure to understand international outsourcing costs
Don’t forget that when you are shipping overseas you can expect many extra costs like duties, carrying costs and more.
You should spend time just cutting your freight cost. Also, you need to think about inventory that isn’t insured. You should have the proper insurance to fit your inventory. As well, remember what your insurance covers. In this case you will not spend extra money on shipping premium goods and services.
Automate where possible
Automating certain processes and procedures in overseas transportation can prevent delays and reduce paperwork. So, you will save the time and money. Manually performing can have a negative influence on resources and time – meaning it can increase costs.
Understand express shipping costs
If you want to avoid late shipments you might send your express or priority. But, you can save money if you decide which inventory should be sent immediately and which can be sent by standard shipment method.
Using a third party logistics service can help you understand and analyze all steps in shipping chain. This can really reduce cost and save you time. Also, with a third party logistics service, you can plan the economic future of your company.
So, think about all these tips if you want to cut your overseas transportation costs. You need to know how to choose, improve, research, consolidate if you want to save your money and time. When you know all the transportation procedures and steps you can focus on doing your job.