5 Factors That Determine International Freight Rates

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5 Factors That Determine International Freight Rates
5 Factors That Determine International Freight Rates

When you ship cargo internationally, it usually costs more than shipping domestically. Before you transport your products to a different country, it’s always a good idea to estimate the increase in cost first. To help you estimate your shipping costs, consider these five factors that determine international freight rates.

1. Speed and Delivery Times

Today, many consumers expect their packages to arrive quickly on their doorstep. If you want your products to ship quickly, it can increase your shipping rates. The reason for this is that the shipping companies need to do a lot more work to expedite the delivery and ensure that the cargo arrives quickly.

2. Amount and Type of Cargo

Another factor that affects freight rates is the type of cargo. If your cargo is difficult to transport, the shipping company may charge a higher rate. Additionally, shipping companies also determine rates based on the amount of cargo that you need to ship. If you need to ship many containers of products, it will cost more than transporting a small amount.

3. Distance To Destination

To transport your products internationally, shipping companies need to spend a lot of their time and resources. When the companies ship domestically, they do not need to spend as much time or resources. This is the reason why distance is also a factor in shipping rates.

4. Popular Seasons

During popular seasons, the demand for shipping increases dramatically. If you ship cargo around the holidays or other popular seasons, your freight rate might increase significantly as the demand rises.

5. Shipping Insurance

If your company needs to transport fragile items or if you want to protect yourself from financial losses, consider purchasing shipping insurance. However, shipping insurance does cost extra, so you will notice that your freight rates increase.

The next time you need to estimate your shipping costs, remember these five factors that determine international freight rates. If you want to focus on other aspects of your business instead of shipping, acquire international freight services for your company today by contacting Diversified Transportation Services.

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