Looking to ship goods internationally or domestically? Understanding the key components of freight shipping costs makes budgeting and decision-making simpler.
This guide breaks down the factors that shape your freight shipping quote, helping you manage your logistics budget and avoid unexpected fees.
What are freight shipping costs?
Freight shipping costs encompass all charges associated with transporting goods. This includes transportation, handling, fuel, cargo specifications, customs duties, and surcharges. Knowing what drives shipping rates helps optimise your shipping strategy and enables you to avoid hidden charges.
Key components of freight shipping costs
Here are the five main expense categories that directly affect your freight quote:
- Type of freight (spot or contract)
- Contract shipping offers predictable costs with long-term agreements, ideal for consistent freight needs and guarding against market volatility.
- Spot shipping can offer flexibility. Weigh your options and choose the option that aligns with your cargo volume and shipping needs.
- Mode(s) of transportation (air, sea, or land)
- Air freight: Fast but costly, ideal for time-sensitive shipments.
- Sea freight: Relatively economical but slower, suitable for large-volume shipments.
- Land freight: Flexible and cost-effective for domestic or regional shipments.
- Cargo weight and dimensions
- Shipping route and complexity
- Tariffs, duties, and taxes
Choose based on the frequency and consistency of your shipments.
Most shipments involve multiple modes. As explained below, the key is to choose the freight service that incorporates the best mode(s) of transport to meet your shipment’s requirements.
Shipping rates depend on the standard weight or volumetric weight (whichever is greater). Larger or heavier shipments require more space and handling, raising the cost.
Longer and/or more complex shipping routes (with multiple stops or remote locations) increase costs due to additional resources and logistics planning. Choose straightforward routes when possible to reduce costs.
International shipments incur customs duties and taxes, which depend on cargo classification and regulations. Proper documentation and accurate HS codes help minimise unexpected charges.
Types of freight shipping services
Each shipping service type has its own set of advantages and is suited to different needs. Here’s a breakdown of the main options:
Service | Best for | Key features & benefits |
---|---|---|
Service
|
Best for
Domestic palletised cargo or bulk goods
|
Key features & benefits
|
Service
|
Best for
Small ocean shipments; low-volume international freight.
|
Key features & benefits
Share a container to reduce cost (but slower than FCL due to consolidation and deconsolidation).
|
Service
|
Best for
Long-distance / cross-border shipments
|
Key features & benefits
Multiple transport modes (truck, rail, sea, barge) under one contract; efficient, flexible.
|
Service
|
Best for
Urgent, high-value, or perishable goods
|
Key features & benefits
Fastest delivery (1–5 days); secure; reliable for just-in-time needs.
|
Service
|
Best for
Large, heavy, or bulk goods; international shipping
|
Key features & benefits
Lowest cost for high volumes; FCL & LCL options; ideal for non-urgent shipping.
|
Additional fees and charges
Beyond the basic freight shipping costs, there are additional charges that can impact your final quote:
Fuel surcharges
Fluctuating fuel prices often result in variable surcharges that can significantly affect your shipping cost. Choose carriers with fuel-efficient options to reduce this impact.
Terminal handling charges (THC)
These fees are applied at ports or terminals for loading, unloading, and handling cargo. They vary depending on the terminal and can be minimized by negotiating efficient handling times.
Demurrage and detention (D&D) charges
Delays can be costly. Demurrage charges kick in if your container overstays inside the port, while detention fees arise for container overstays outside the port. To avoid expensive D&D charges, plan transit schedules realistically and coordinate closely with your logistics provider.
Special handling fees
Hazardous, oversized, or temperature-sensitive cargo often requires specialized handling, incurring extra fees. Ensure your cargo is accurately declared and packaged to manage these additional costs.
Other shipping costs to consider
Here are a few indirect or less obvious costs associated with freight shipping:
Packing and palletisation
Inefficient packing and oversized pallets waste space, increasing shipping costs. Use space-efficient packaging and standard pallet sizes to manage costs.
Cargo insurance
Freight insurance protects goods from damage or loss. While it adds to the cost, it significantly reduces risk, especially for high-value or fragile cargo. Carefully evaluate the necessity based on your cargo’s value and risk factors.
Peak season surcharges
Shipping during peak seasons, like Black Friday or Chinese New Year, often leads to higher costs due to increased demand. Schedule your shipments outside of peak periods if possible to minimise extra costs.
Freight shipping cost calculation: Checklist
Before requesting your freight shipping quote, review this handy checklist (also available to download below ) to ensure all factors are covered:
Shipping with Maersk
Transporting goods doesn’t need to be a financial mystery. By understanding the key components of shipping freight costs, you can optimise your budgets and ensure your goods reach their destination efficiently and affordably.
You can also streamline the entire process by generating instant quotes and booking online using Maersk Go. This intuitive platform simplifies logistics by offering transparent, instant freight rates and streamlined bookings from door to door. Every time you search for a shipment on the Maersk Go platform, you get instant daily rates and can complete bookings in just a few clicks.
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