If your international business is soaring high, you would definitely not want it affected by increasing container shipping costs. Those prices keep showing fluctuations due to a great number of factors like the demand in the market, the costs of the fuel, the location of delivery, of course, and more. However, there are strategies that, if followed promptly, can help you minimise your expenses and reduce container shipping costs for your business.
10 Proven Ways to Reduce Container Shipping Costs
Here are 10 methods that you can use to reduce the total container shipping costs, and they are proven ways, so you can definitely rely on them to see a reduction.
1. Optimize Container Utilization
A good package packing technique can be helpful in saving tonnes in shipment costs. If you carefully plan your parcel’s layout, then you will be able to increase the space inside the container. This will ultimately lower your total shipping cost a lot.
To attain this, you can stack your packages correctly to avoid any gaps and also use modular packing so that there are no voids left. By reducing this space, you can see an increase in the savings.
2. Consolidate Shipments (LCL vs. FCL)
If you could consolidate all your small-volume shipments into one load, then you could benefit from the volume discount offered by couriers. This will also reduce your handling fee. So, whenever possible, try to convert your Less than Container Load to a Full Container Load and witness a huge reduction in international container shipping rates.
You might not be aware, but almost all couriers offer a high-volume discount for shipping with FCL containers. This will obviously reduce cost but will also improve transit reliability. Both transfers and touchpoints will be reduced this way, giving a smoother shipment.
3. Choose the Right Shipping Partner
Your courier partner can make shipping easier for you, and to achieve that, you need to get a reliable courier partner, I mean, DTDC Australia. This will help you get cost-effective container shipping rates, and you can easily tailor the services as per your business requirements.
With a reliable partner, you can rest assured that your packages will be transferred safely, your shipment will be able to navigate international regulations easily, and the stress of customs will be lowered.
4. Plan Ahead & Avoid Peak Seasons
When you ship during peak seasons, you will not only face high prices but may even go through a container shortage. Shipment during international holidays, or year ends, or vacation days can inflate the courier prices to their peak. You may also face shipment delays during this season.
Thus, to get the best out of these services, try to ship during off-peak seasons as this will help you avoid higher container freight rates and instead will allow you to ship at lower costs. Plan ahead so that your shipment doesn’t have to go through this stress.
5. Negotiate Better Contracts with Carriers
If you are already a long-term customer of bulk shipments, then you must not hesitate to negotiate better contracts with them. Speak to your service provider and try to get the best rates for your international shipping container.
There are many carriers that offer loyalty discounts or tailored services for customers who have been shipping with them for a long time. If you have contracts, then don’t shy away from renegotiating those contracts at various intervals so that you get the best prices and they are able to retain you as a customer.
6. Explore Alternative Routes & Ports
If you want to cut the cost of shipping containers, then you must look for options regarding alternative routes and ports. If you select ports that are less congested, then it will be a great help in cutting surcharges, and guess what, even your shipment could reach faster.
Sometimes, even longer routes may appear to be more beneficial and cost-effective due to lower tariffs or customs regulations. So, take your time and explore the best routes for transit and compare where you save more. A time well spent on shipment planning can actually help you more than making quicker shipment decisions.
7. Leverage Technology for Smarter Shipping
Technology has improved shipment services and has made both transit and tracking easier for people. With the help of tracking tools, managing correct documentation, and streamlining the supply chain procedure efficiently, further reducing the total container shipping costs.
With the help of Transport Management Systems, or using AI analytics for transit, both your stress and excess pricing will see a fall. With such tools, you can do better planning for your shipment and choose routes that will lower your fuel cost and also forecast any other weather issues to avoid delays or extra charges.
8. Improve Packaging & Reduce Dimensional Weight
The way you pack your packages can also help you reduce your shipment costs. Compact, efficient packing will reduce the total space it acquires in the container, and this will lower your freight charges in total.
With an improved handling of shipment and the least area covered by the packages in the container, you will witness a reduced cost of shipping containers. Don’t go for loose or bulky packaging; instead, use packaging that customizes and fits perfectly to the products, reducing voids in the container.
9. Implement Sustainable Shipping Practices
You may also reduce your international container shipping rates if you practice sustainable shipping. Every eco-friendly step you take, whether using reusable containers for shipment or choosing fuel-efficient shipping options, will help both you and the planet.
There are carriers that may offer discounts to businesses that opt for eco-friendly packaging methods. Using sea freight will reduce costs as compared to air freight and will surely also reduce your carbon footprint. The more the merrier, right?
10. Regularly Audit & Optimize Supply Chain
One must regularly go through and review their shipping procedure in order to identify any kind of inefficiencies or hidden fees. Also, optimize your partnerships and shipment routes, leading to lower container shipping costs to any destination.
Keep a keen eye on your storage charges, fuel consumptions, transit costs, and other factors. Find out where you are spending more than necessary and treat that part well. Regular checking will surely help you with reduced costs.
You May Want To Know…
- How much does it cost to transport a shipping container?
There are small shipping containers that are around 20 ft, and large shipping containers that are about 40 ft. The distance, the volume of shipment, and the items you carry are all considered to determine the total cost. The range may start from $500. However, do consider the above-mentioned factors.
- How much does it cost to move a 20ft shipping container?
Your destination location can influence the price of your shipment to a great extent. The charges may start from $500 to $1000. Do check with your courier company and compare to choose the best.
Factors Influencing Container Shipping Costs
- Distance– Longer routes mean increased handling charges and a lot of fuel to be used, thus enhancing the total cost of shipping containers. As they say, the more the way, the more you pay.
- Container Size- The container size you choose to ship will also affect your total shipping cost. Although large containers that are typically 40 ft may charge you more, they are more efficient if considered by the cubic meter than small containers up to 20ft.
- Destination Port- Not just the distance, the port you ship to also affects the shipping rates. There are usually higher handling fees and customs charges in some ports. So, if you are shipping to any such port, be ready for increased charges.
- Cargo Type- If you are shipping fragile items, perishable goods, or oversized items that require special handling, then you may have to pay more. This can surely drive up the international container shipping rates.
- Shipping Method- The FCL or Full Container Load is often a cheaper choice as they charge you less per unit in contrast to LCL or Less Than Container Load. Prices may change based on your cargo volume.
- Fuel Prices- The regularly fluctuating bunker fuel costs are also responsible for directly affecting container freight rates. They also increase the surcharges applied by carriers.
- Customs Duties and Taxes- One of the most important factors that will enhance your total shipping charges is taxes and customs duties. Import/export duties, VAT, and tariffs of the particular destination countries can add to your fees.
- Market Conditions- The demand and supply chain are effective factors in increasing or decreasing the shipping rates. Whether they are imbalances in demand and supply, or economic slowdowns, all these can impact container shipping rates.
- Seasonality- Shipping during peak seasons will cost you a bit more than regular. You may even see container shortages other than higher costs during holidays or harvest seasons.
Examples of Shipping Costs from Sydney (approximate)
- To the UK- The total Cost of shipping a 20ft container from Australia to UK can range from about AUD 5,000–7,500.
- To the USA- The total Cost of shipping a 20ft container from Australia to USA (West Coast) can cost you about AUD 4,500–6,500.
- To New Zealand- The complete Cost of shipping container from Australia to New Zealand will cost you around AUD 2,000–3,500.
- To India- For your shipment to India, you must learn that the Container shipping cost from Australia to India is about AUD 3,500–5,500.
*Costs may vary as per cargo type, season of shipment, carrier type, and more.
Conclusion
We have been helping you for a long time with tips and tricks to make your shipment easier and affordable. Going through these details will reduce your container shipping costs and help you save tons. Carefully examine each detail from shipment booking to other factors, and see your costs go down.
FAQs
How Much Does It Cost to Ship Furniture Overseas?
It may take you approximately AUD 2,500 to AUD 7,500. Keep in mind the destined location, furniture weight, and how you ship.
How to Ship Furniture Overseas Cheaply?
Choosing to ship via sea freight can help you save a lot on your furniture shipments. Also, if you consolidate your packages and pack nicely so that they do not take much of the container space, then that will also help in savings. Another saving hack is to choose an off-peak season for shipment. Or you can just stop worrying and ship with DTDC Australia.
How much does it cost to ship a container overseas?
A small container may cost you around $800-$1000, as per location, and a large container may start from $1000.
How much does it cost to move a car overseas?
That looks like some intense work, but don’t worry, it’s easy if you ship with a reliable courier. You may expect to pay $800- $2000 by keeping in mind other factors like distance, volume, etc.
How much does it cost to move a dog overseas?
Taking your dog on an adventure, have you checked its weight and other necessities? Well, we can give you a range, about $150 to over $2,000. Contact your courier partner for more details.
