The shipping industry is affected by several different factors and so are the calculated shipping costs. Get to know the most important factors and how they influence shipping prices.
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Many factors, from international oil prices to the mode of transportation, influence container shipping prices. Such unpredictability can quickly derail budget planning. With tools like Quick Quotes binding freight rates for individual requests within 30 seconds can be obtained.
Here is an overview of seven different factors that affect container shipping costs.
The volatility of oil prices has a direct impact on container shipping prices. Rising fuel prices therefore also influence the level of operating costs – which eventually leads to higher cargo rates. Market prices fluctuate, particularly for crude oil, and are difficult to estimate or predict. However, alternative fuels are already being developed and can stabilize costs in the long term as they are more easily accessible. One example for alternative propulsions is the use of biodiesel. With Ship Green you can easily ship your cargo in a more sustainable way by avoiding emissions.
Container shipping prices are calculated based on the size and weight of the freight. This is because heavy cargo as well as special cargo requires more space, consumes more fuel, leads to higher wear and tear and also requires more driver hours. Apart from that different container types need different precautions and lashings. It will show up as a surcharge on your bill and you will be charged with higher cargo rates if the freight does not correspond to the previous specifications. Hence, it is mostly required to note the measurement and also the type of cargo you want to ship during the quoation stage. With our tools Quick Quotes and Quick Quotes Spot you can easily do that with just a few clicks. Shipping extraordinary cargo? No worries, we've also got a tool for that!
The further the distance to the destination of the goods, the higher the container shipping costs. For example, a transport from Hamburg to Singapore takes much longer than transporting goods from Hongkong to Singapore. The mode of transportation (MoT), various logistic zones, higher fuel consumption and longer working times are some of the factors here why some trades are more expensive.
Solutions like the Vessel Schedule make it easy to keep track of departure and arrival points. In addition, the alternative of intermodal transportation, like a combination of land and sea transport, often proves its worth and offers more flexibility. Want to keep track of where your cargo is during the multimodal transport? No problem at all with Live Position.
While in most cases it is not possible to actually ship containers faster (you know, tides and weather conditions are somewhat predictable not always reliable and might change really fast) it is possible to add services for extra convenience and security. Those will obviously also affect the calculated costs. For example: If you want to make sure that your cargo absoluty will not be rolled over you can add a Shipping Guarantee to your booking. Need more time to pick up your containers from the terminal? Simply purchase Additional Freetime and benefit from up to 10 extra days on top of the freetime per tariff.
With extra services like this you can basically customise your shipments to your needs, but keep in mind that those services will be charged. To keep the transparency, we'll show each and every extra charge in the booking overviews.
In transshipment, for example, a container is loaded onto another ship at an intermediate destination. This is because some ports, such as Hamburg, Germany, cannot be accessed by ships that are too large due to their nature. Therefore, feeder ships often have to be used. This then has an impact on container shipping prices, as it involves additional handling, transhipment processes and additional lay times.
The choice of transportation mode also has a major influence on cargo rates. Land, air or sea transportation have different advantages and disadvantages depending on the requirements and type of freight. Although sea freight generally takes longer, it is also the less expensive alternative to air freight. Get multiple quote options and compare services based on your needs with the Hapag-Lloyd Business Suite that grants easy access to inland or ocean cargo rates.
As you can see there are some factors that can affect your shipping costs. But don't let that put you off: If you keep the most important points in mind, calculate smartly and fall back on the right tools, there will be no surprises in container shipping prices.