For many, the concept of shipping means packing the cargoes and dropping these to shipping companies that facilitate the travel of the cargoes through planes. Others see shipping as land-based, which means that the shipping is done through drivers and couriers that navigate the highways and the streets. But if you really want to understand the nature of shipping then you have to keep in mind that shipping is about sea shipping as well. In fact, a huge chunk of the demand for shipping is actually facilitated by sea travel. Sea shipping is here to stay, and it is important that a proper understanding on how this works and how the costs are computed are in order. At least by doing all these things, you can get the best out of this shipping option.
How the cost in sea shipping is computed If you would like to learn how the shipping cost is computed, then you have to keep in mind that there are two elements that are in play and these are the same elements that affect the end costs associated with shipping. The first one is the costs that are charged by the shipping company. And the second group of costs is associated with the handling and the moving of the goods and shipments at the terminals and ports. Now the charges and the costs are not taken out of thin air, rather there are bases for the computation of the fees, costs and charges. There are a number of factors that affect the computation and the calculation of charges and fees including;
- When it comes to liner traffic, the cost of the freight is usually charged based on the standard shipping rates of the shipping agents. But for those regular customers of the shipping companies, a special rate can be requested.
- The rates that can be asked by the shipping company may be dependent as well on the supply and demand conditions. If there is a huge demand for the shipping services, and there are few providers then there is a big chance that the overseas shipping charges may be hiked.
But keep in mind that there are other factors that are in play that affect the final costing of the shipping services. The other factors that have an impact on the overall costing of the shipping services include;
- The congestion charges on the specified ports.
- Did you know that changes in the exchange rates can have an impact on the actual and total charges associated with shipping? This is usually included in order to take into account and consider the numerous exchange rate changes that usually happen during the length of the travel. And when it comes to shipping costs, keep in mind that the majority of the costs are quoted in US dollars.
- Also, the cost of shipping may be affected by the surcharges like the security surcharge that are often asked by ports.
On top of all these charges are other taxes and duties as well that can be added to the sea shipping costs and charges. As a regular shipper, you should be aware of how the costing is made. This will ensure a faster transaction with less questions and stress.