Businesses that deal with the import of the export of commodities heavily rely on shipping. The process involves the transportation of cargo from one part of the world to another.
Companies dealing with finished products need to buy raw products continually. And those selling products worldwide need a reliable supply of logistics to ensure the smooth outflow of the products. Thus, choosing a good shipping company can be helpful in many ways.
A reliable freight carrying firm proves beneficial as it ensures that your incoming or outgoing transportation does not get impeded in any way. Cargo companies that swear by their logistical and transportation network have more than one route and transportation method.
One of the critical features the right transportation firm offers is the transparency of prices, as a prudent shipping firm looks for a steady relationship from regular customers.
How to determine freight rates?
Below are four factors influencing domestic and international ocean freight rates.
1- Commodity
One of the things that affect the freight cost is the commodity you want to be shipped. Fragile items need better handling; they often need fortified packaging. This process uses up extra spaces of freight carriers and, thus, adds to the cargo company’s costs.
However, things that can be closely stacked and do not need special or tight packaging usually do not add to the cost. This is a crucial way of determining while getting instant online freight quotes.
2- Expiry
Things that you send across long distances, particularly to different parts of the world, are also categorized according to their perishability. Thus, foodstuff, even processed one, is regarded are highly perishable.
Such cargo items require expeditious shipping, lest they spoil during the transit. On the other hand, cargo items that have longer expiry do not need such speedy transport. Expeditious transport costs are significantly more than the regular ones.
3- Distance
One of the primary things that significantly affect the shipping price is whether you plan to ship over short or long distances. It is needless to say that international ocean freight rates are massively higher than domestic ones. This is due to the long-distance, the cost, and the time involved in it.
4- Mode of transport
Even if you have decided to ship across a considerable distance, the big question now arises: What is the mode of transport you are planning to choose. Most freight companies have an intricate transportation network, i.e., a mix of sea, air, and road routes.
However, some firms offer some exclusive options, i.e., sea route or air transport. The ocean freight shipping quotesare drastically lower than the air route.
One main reason is that air transport methods are intrinsically expensive. They also prove beneficial as the clients get expeditious and usually uninterrupted shipping.
To conclude
These were the four factors influencing domestic and international air and ocean freight shipping quotes. You can optimize your supply chain costs with the help of a reliable platform like LCLXchange. It brings to your competitive quotes from multiple freight carriers. This helps you make an informed decision.