5 factors that can affect ocean freight rates

When transporting commodities through oceanic routes, there are a number of factors to consider in order to ensuring a successful freight. In other words, many different variables need to be analyzed when closing a deal and choosing a freight forwarder to be responsible for the move of your cargo by ocean.  And this is why, before a transporter or a freight forwarder hires a shipping company,  they should make sure that they completely understand these variables and the rates applicable.

If a shipper doesn’t have full knowledge of all the applicable ocean freight rates that they will face when handling a cargo, they could end up making a huge loss. It gets even more complex because different fees and conditions may apply depending on the specific route or destination the cargo is being shipped to.

Although ocean freight rates are generally pre-set and standardized, this is also a highly unpredictable area. This is why with today’s post, we intend to inform you about some factors that could possibly affect the rates you will pay when moving your cargo through ocean freight. Check out some of them:

 

1. Season

Depending on the season that you are moving your cargo on, as well as what kind of cargo you are moving, you could face different rates and fees. Certain goods, such as grains and fruits, will have higher cargo rates depending on particular freight seasons.

 

2. Currency

Currency is another key factor to consider when shipping your cargo overseas. We all know different countries use different currencies, however, the common denomination used for international transaction purposes is the dollar. Therefore, ocean freight rates will depend on the rate of exchange at the moment of the transaction, and so transporters should be aware of the currency to avoid any negative surprises

 

3. Fines and Fees

There is also the possibility of facing situations where the shipper will need to pay extra fees or even fines. Sometimes the shipper can go through a problem, like when there is a delay in the arrival of the ship to the port due to an incident or over-crowding, for example. And if something like that happens, it is possible that they will be imposed to a fine, which could affect the ocean shipping rates.

 

4. Terminal fees

These fees will be paid both when the ship is first boarding, and also upon its arrival at your cargo’s port of destination. Although it is possible for freight forwarders and carriers to predict the total amount that will need to be paid for these fees, some things like cargo overweight or delay could imply on increased fees.

 

5. Container Capacity

If you choose to use the ocean freight option LCL (Less than Container Load) to ship your cargo, it means your cargo will be sharing the same container with other people’s cargoes. This is a good option for people who don’t have enough to fill an entire container, because it means they can share the price of the container with others and save money. However, if your shipper doesn’t find enough cargo to fill the entire container, that will mean you will have less people to split the shipping fees with, which could also imply on having to pay increased rates.

 

Now that you know more about what factors are important to be considered when shipping your cargo by ocean freight, you can have a better understanding on what to look for in a shipping company. A specialized freight forwarding business, like GCE logistics, has all the expertise and know-how of the global ocean freight process, providing our clients accurate rates, regardless of their cargo destination.

Our ocean freight services are integrated and complete, and our team is ready to build customer based solutions to best fit your demands as far as time and cost restraints. To learn more about it, you can check our page by clicking here.

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