Shipping can be an overwhelming challenge for any business without the resources to run its process successfully. Several business owners find it tough to handle the prevalent demands of packaging and packaging, including the running costs. However, it is worth mentioning that products may also determine shipping complexities. A clothing brand may have less difficulty shipping sweatshirts to customers across the globe, as compared to a car company. The simpler the products, the easier shipping becomes.
Interestingly, the burden of moving products from one point to another has reduced drastically – thanks to the presence of shipping companies. These organizations handle the delivery of goods from a company or distributor to customers at affordable shipping rates, also known as tariffs. These shipping tariffs depend on several factors, including size, number, and location.
It is worth noting that the entrance of logistics firms into the shipping industry has boosted e-commerce. Where it was complex to send items to a recipient, business owners can now package and deliver these goods within a short timeframe and at a reduced cost.
How Much Do Shipments Cost?
Shipping rates differ from one logistics company to another. Some logistics corporations charge based on “girth,” which involves the company taking into account the dimension (height, width, and depth) of the freight container, and its gross weight. It implies that a seller will pay according to the product weight and also the space it occupies in a shipping company’s cargo. For this reason, product packaging is crucial, as it determines how much an individual will spend to deliver an item.
For example, if a paint manufacturer decides to ship 120 buckets of paint in a 2,000-capacity shipping container, the company would have to pay for the extra space of 1,880 buckets, even though the cargo is lightweight. It implies that the manufacturing company took more space than it needed – a clear sign of inefficiency. Due to the high tariff, some companies charge their customers more for shipping to prevent losses. As a result, these customers tend to drift towards other manufacturers with cheaper shipping rates.
How To Determine The Exact Cost For Your Shipment
Even though packaging influences the shipping cost of a shipment, it is essential to know the exact shipping tariff a logistics company will charge. Most of these companies have websites that help shippers to calculate the freight rates on items, using specific information like the height, width, depth, and weight of the packaged products.
The calculator helps manufacturers and sellers to get the accurate cost of shipment, and then charge customers based on that. However, this manual process works effectively when a customer orders an item from the seller directly; it could either be in person or through the phone.
Online Shipping – Is It Worth The Hype?
What happens when a customer places orders for products on a company’s website? How does the company charge for shipping? The seller has to program the website to handle complex shipping computations that align with those of prominent logistics corporations. The shipping calculator should be able to process various information input, factoring in several possible scenarios.
If programmed correctly, the seller should be able to give customers the right quote to prevent financial losses or low customer engagement. Are there no ways to automate the shipping cost in a way that saves a seller from inputting product details to determine freight cost? In actuality, it seems feasible and more of a futuristic feature. However, at the moment, shipping calculators rely on information input to determine the cost of shipping on products.
Benefits of Shipping Companies
People who send items internationally understand the value shipping companies provide, one of which includes affordable freight pricing. Ocean freight shipping stands out as the oldest form of freight transportation, as 90 percent of goods moved around the globe pass through oceans and waterways. Some of the benefits this shipping option provide include the following:
1. Affordable Shipping Cost
Shippers have access to highly competitive shipping rates that helps them move products over long distances. The average cost of shipping is four to six times lesser than air cargo delivery services. Hence, most manufacturers and distributors consider this shipping to be the cheapest and ideal freight option in the industry.
2. Capacity
One unique value that comes with ocean freight shipping is the ability to move oversized, heavy, and bulky items from one country to another with ease. These items are known as Not in Trailer (NIT) or breakbulk loads and can include heavy-duty machines, construction materials, and vehicles.
3. Safety
The shipping industry offers one of the safest means of conveying goods from one point to another through ships. These large transportation machines can move cargo, vessels, and crew safely. Besides, there are safety regulations in place to mitigate the risk of lives and properties. The airtight containers also keep items safe during transportation.
4. Efficiency
Shipping companies can accommodate the vast needs of shippers, regardless of the size of their shipments. Sellers with smaller goods can share the freight cost by grouping their products into a freight container. A cargo can take multiple ocean containers that house a myriad of items, which makes this option highly efficient.
By John Kan