Understanding Shipping Fees


How much will it cost you to ship goods? And if you choose to use a freight forwarding service, how do they get paid? Will you save money using a company like ours, or will you have to pay more?

These are all reasonable questions. We know you want to stay on budget and keep costs low.

Here's what you need to know. 

How do carriers price shipments?

Carriers use seven factors to determine what they will charge you. 

  1. The chosen mode of transportation. Are your goods moving by air, sea, truck, or combination of the three? Air is the most expensive mode of transportation.
  2. Distance. The farther your goods travel, the higher the cost to get them there.
  3. Weight. All ships, planes, and trucks have a limit to the weight they may carry. You'll pay more for heavier shipments because you'll use more of the vessel's capacity.
  4. Volume. Each boat, plane, or truck can only fit so much cargo into a hold, so you'll also be charged for the amount of space your shipment eats up.
  5. The destination. Some destinations are riskier or harder to get to than others.
  6. The type of goods. Hazardous goods or goods which require special care cost more.
  7. Customs and regulatory fees at the destination port. Carriers have no control over these fees.

Carriers may also tack on many other fees. You may see fees for waiting times, inaccurate bills of lading, limited access at the loading site, reweigh or reclassification fees, and more. 

How do freight forwarding companies price shipments?

Freight forwarding companies use four factors to determine pricing.

  1. The cost of shipping the goods, which incorporates all the factors listed above. You'll save a lot of money here, as a freight forwarding company can help you negotiate the best rates. Our expertise also enables you to avoid burdensome additional surcharges and fees. 
  2. Customs brokerage fees incorporate the customs and regulatory fees at the destination port and the service we provide in managing regulatory requirements. For example, we prepare and file all necessary paperwork on your behalf. You can count on us to know what to do rather than having to track down that information yourself.
  3. Warehousing and storage fees. We can help you store your goods but must pay the warehouse's owner. Fortunately, as with carriers, we negotiate better rates for you than you could negotiate on your own. 
  4. Insurance fees. You'd have to buy your expensive insurance policy to protect your goods while dealing directly with carriers. With us, you pay a small insurance fee to cover as much cargo as you ship and only pay when you ship freight. 

So while we charge for the value we add in offering logistical support, you nevertheless pay far less than you'd pay if you tried to manage the shipping yourself. In addition, we use technology to keep your cargo secure and to help you keep track of your shipment anywhere in the world. 

Keep Your Business Profitable with Aries Worldwide Logistics

Our global partnerships, expertise, knowledge of customs laws, regulatory know-how, and ability to negotiate the lowest rates mean your profit margins will be higher on every shipment you send.

Contact Aries Worldwide Logistics to compare pricing today. 

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