Are you unaware of the shipping container costs?
Do you want to know how you can calculate the shipping cost?
The shipping cost is applied to any product when it is ready to be shipped for international delivery.
There are various ways through which the supplier and the freight forwarder transfer your products.
The cost of each method differs depending on the factors that you will learn in this blog.
If you want to know about the method to calculate the shipping costs of different shipment categories, then you are on the right place.
You will learn in-depth knowledge about the topic.
Table of Content
Chapter 1: How Much Does Shipping Containers Cost?
Chapter 2: Do You Know Which Sizes of Containers are the Most Popular Ones?
Chapter 3: Types of Shipment and Different Shipping Cost
Chapter 4: How to Calculate the shipping cost?
Chapter 5: FAQS About the shipping cost
Table of Contents
Chapter 1: How Much Does Shipping Containers Cost?
This chapter is about the shipping cost of various containers depending on different factors.
1. Which factor determines the shipping cost?
Following are the factors which determine the shipping cost of the container:
- Geographical location
The presence of containers in an area affects the shipping cost, as the price varies on supply and demand.
You should know about the supplier location while purchasing the specific container. The economy and price rate at a certain time affect the shipping cost also.
In some cases, you pay more shipping charges in importing than budgeting the container itself.
The supply chain and demand ratio are not the determining factors, geographical areas like landlocked and ports also play an important role.
The areas which do not have direct access to the sea have more shipping charges than the open sea.
Likewise, the port location also has higher transit costs. This is because when the container has to travel for a long distance will cost more than the in-country delivery.
- Container condition
Two choices are given to the buyer. You can buy either a one-use container or the used one but the cost of the new container will be higher than the used ones.
The average cost for a new 20feet container will be $5,000. On the other hand, the cost of the used container will be between $3,500 to $5,000.
The state and age of the container determine the price. The more used container will cost less.
- Container size
The shipping price will increase as the size of the box increases. A 40feet container costs more than 20-30% of the standard 20feet container.
But the customer prefers containers of the required shape, size, and state. There are two standard sizes available to the buyer 20ft (20’×8’×8.5’) and 40ft (40’×8’×8.5’).
You can customize or modify according to your need.
- Customization and modifications
Customization and modification of the container are normal in this industry. You can order the desired container without any procedure.
That is why it influences the shipping costs around the world. The construction period of a container is mostly during spring and summer.
You can talk with the supplier about the supply and demand process to analyze the best time for buying.
2. How do vendor and delivery rates affect the shipping cost?
The right supplier will help to determine the shipping cost of the container. The location of the supplier from the buyer also affects the delivery rates.
Due to long delivery distances, suppliers cost extra charges. Moreover, some containers are large-sized that’s why the size and the time of delivery also affect the delivery cost. The distance and prices have a direct relationship with each other.
If the distance is more than the container will be costlier. To check out the delivery quote before purchasing will be a wise option or search for the supplier offering flat rates.
3. How does the weather affect the shipment price?
Weather is the main element that disturbs the schedule of delivery. The transferring and receiving ends follow different climatic conditions, due to this reason the price range changes.
These conditions can cause the threat of massive incidents on the way. The truck drivers avoid freight due to bad weather conditions and suppliers are left with some options to deliver the freight anywhere in the world.
These bad climatic conditions disturb the supply and demand chain. As the suppliers have some drivers to meet their demand. This is why the price of shipping the container increases.
Chapter 2: Do You Know Which Sizes of Containers are the Most Popular Ones?
This chapter will tell you about the variety of containers depending on their sizes and you will also know about the most used and in-demand size of the container.
1. 20ft shipping container dimensions
The containers can be of different sizes the smallest one is 20 feet long. This container is about the size of 4 bedrooms and holds an area of around 30-35 cubic meters.
2. Container price for 20ft shipping container
The price of the container depends on its size. The 20-foot long container can cost you around an average of $4500. The size, shape, and features affect the price of a shipping container.
3. 40ft shipping container dimensions
The second-largest container is about 40 feet long. This 40 ft. long container is roughly the size of 4 bedrooms or more holding an area of 65-75 cubic meters.
4. Container price for 40ft container
The price is directly proportional to the size of the container. The container which is 40 feet can cost about an average of $6000. The state and features of the container enhance the price also.
5. 40ft high cube shipping container dimensions
The container which is considered the largest one is 45 feet or 50 feet long. These larger containers may be as large as the size of 5-6 bedrooms and hold an area of 85-95 cubic meters.
6. Container price for 40ft high cube container
The greater is the size of the container more will be the price. The shipping price of containers with dimensions more than 40 feet will cost an average of $8000.
The condition, features, and size will inflate the price also.
Chapter 3: Types of Shipment and Different Shipping Cost
In this chapter, you will learn about the types of shipping packages and their shipping cost in detail.
1. Types of Shipping Containers
The shipping containers are categorized depending on the ease and availability factor. Some of the major types of shipping containers are discussed below;
- Full truckload shipping:
Full truckload shipping needs a vehicle or fleet of vehicles to travel on the ground for delivery. Packages are loaded on them at the point of origin to be shipped for long distances.
It is considered as the quick and steady way of transportation. The benefit of this shipment is that all the items are loaded on a single truck. It is utilized by the retail industry more often.
It is also preferred more because it is the best way to transport electronics like refrigerators, scientific machinery. The multi-temp vehicles are introduced for this purpose to maintain the temperature of the object in cargo.
- Less than truckload shipping:
Less than truckload shipping requires the place in the truck of other parties. If you moved your container with a moving truck company, then the package will be sent in a small space of the truck.
It works on the same principle as in full truckload shipping. It is usually less costly and carries packages on a longer distance.
The refrigerator, dual temperature, and multi-temperature are now shipped through this shipping method.
- Flatbed shipping:
This flatbed shipping is based on shipping goods in a trailer without any top enclosure.
Flatbed shipping deals with the container which does not require any loading and unloading on distribution points or can not fit in the ordinary truck. The goods can be loaded or unloaded with the help of a crane or forklift.
- Intermodal:
The technology and the advancement in communication policies have increased access to the international market more frequently.
Now, the shippers use many paths like land, air, or sea to deliver the products anywhere around the world.
The cargo which is delivered by either of the ways is then picked up by the trucks or trailers to be transported to the final destination.
This is the most used path of the customers before the cargo is imported into the local market.
Intermodal freight transport has become the most common method of transporting goods from point A to point B.
Now, the advancement in era has introduced more firms offering comprehensive online delivering methods and tracking codes, which helps the buyers to follow material transit in time.
2. Common Freight Shipping Costs and Expenses
The delivery can be done through various methods but the following freight methods are the top-ranked and are used most depending upon the need. The time chart and cost range varies from one another.
- Ocean Freight Shipping Cost
The ocean is also used for delivering goods around the world. It is used to transfer the heavy cargo having goods packaged in containers and that container is loaded in a vessel.
It is not preferred much as it takes a long time to deliver, weather conditions are the main cause of late delivery. It is the cheapest with a more time-consuming facility.
- Airfreight shipping cost
In this shipping method, air crafts ate used more often. It is the fasted mode of transportation the goods in any part of the world.
It is one of the easiest and most convenient ways of shipping. It has more access to different areas of the world as compared to land shipping. The lighter weight packages are more preferred as they consume less area.
It is more expensive as compared to other methods because the speed is fast, products are delivered on time. You can expect your products to be shipped through air freight in 1-2 days.
- Land freight shipping cost
Land freight is the oldest known method of transporting goods around the world. It is used more frequently when the products are delivered within the country or in the neighboring country.
Trucks are used to transfer the goods through roads, as they carry the bulky materials for construction and even the vehicles.
But it may take a long time to reach the receiving end. The goods are also shipped by rail.
If the railway station is near your location then, the goods can take someplace in the train to be delivered to the destination. It is beneficial in the way as it carries larger goods for long distances and is also affordable.
Chapter 4: How to Calculate the shipping cost?
This chapter will tell you about the shipping cost, the ways of calculating the accurate and precise charges.
1. Package dimensions
The major technique which is used commonly by the carrier is known as dimensional weight, also called DIM weight. They consider the size of the package as a dimensional weight to find out the shipping charges.
If you want to calculate the dimensional weight, then multiply the length, width, and height of the container then divide the answer by standard DIM divisor.
There are many shipping carriers available in the market who calculate the shipping cost on the greater weight of the package; the actual weight or the dimensional weight. The greater weight will decide the charges.
2. Package weight
In measuring the package weight carriers don’t use the DIM divisor or any other calculation instead it is based on the degree of how heavy it is.
If these numbers are greater than the dimensional weight, then they will be used in calculating shipping costs. More heavy and large the package will be, mote expensive it will be to deliver.
3. Shipping destination
Carriers use shipping zones to calculate shipping rates. Shipping zones measure the distance between a package’s point of origin and its destination. In the US, these can range from Zone 1 to Zone 8.
The shipping zones also play a role in calculating the shipping cost. This shipping zone measures the distance between the sender of a package and the receiver of the package.
The shipping zone’s calculation depends on the place from where the package has to be shipped.
If you assume the situation in which two different points of origin are shipping the products to the same destined position may represent two completely different zones.
In short, the higher the shipping zone, the more will be the shipping cost of the package.
4. Value of contents shipped
In case you are buying expensive products and high quality, then their maintenance and security will be of more concern.
The shipping carriers have insurance that offers reimbursement in case of lost, stolen, or damaged packages. This service adds value to the shipping rates.
5. Delivery times
Customers demand their delivery to be fast, safe, and on time. If the package has to transfer from the higher zones, then the shipping costs vary.
It may be expansive in some cases and affordable in others. Let’s assume a situation in which the zone varies like zone 1 and zone 8 both require delivery in 2 days but the rates vary in both cases zone 1 will go with ground shipping and zone 8 will cost more.
6. Unexpected problems
Although you have a tight and tough schedule to ship the products, even then some unexpected incidents may occur from time to time.
These can be lost or damaged packages, delayed transit, split shipments, etc. You cannot predict this so leave some budget for emergencies.
Chapter 5: FAQS About the shipping cost
In this chapter, you will be answered all the basic questions.
1. How do I calculate dimensional weight?
If you want to calculate the dimensional weight (DIM) of the container then multiply the length, width, and height of the container by using the longest point on each side.
Afterward, divide the cubic size of the box in inches by DIM divisor to calculate the dimensional weight in pounds.
2. How do I get shipping discounts?
Shipping can be done in many ways either the buyer himself finds the way, the supplier can also help the process or the third party logistics can provide the service on discount prices on major carriers.
3. How small businesses can reduce shipping costs with a 3PL
Every business requires the amount to be worked on and every businessman wants to gain more profit.
If he is buying something from the International market then he will consider many factors in mind like he will utilize the option that costs less amount in shipping the container.
In that case, working with the supplier and third-party logistics will make the difference.
Exporting the products by 3PL helps the businesses flourish due to discounts in their offers.
Conclusion
This blog is all about the shipping cost which is the main step after analyzing the required product from the market.
This cost affects the profit ratio of the businessman so he works on all the areas to satisfy the calculations.
You must have learned about the basic criteria of how you can check the cost, which method is beneficial in the current situation.
If you have more questions which remained unanswered then you can contact on our website www.eject.com
