Estimating the Near-Perfect Container Shipping Cost [Hint: Use a Container Shipping Calculator]

What's in this article?

As international trade grows, container shipping rates continue to rise. But how much do you know about this cost?

Container shipping rates are always on the move, affected by various factors: the size and type of container, the origin and destination of the shipment, whether or not you need customs clearance, and other variables. That's why it's essential to use a reliable container shipping calculator to estimate your shipment's cost accurately.

Container shipping rates can be confusing to understand. A few queries can keep you itching, like:

What is the cost per container?
What are the factors that influence the price?
How do I determine the potential cost of container shipping?
And, how can you get a better deal on your container shipping?

In today's blog post, we'll look at container shipping rates and how you can get the correct estimate. So, if you're considering using container shipping for your next shipment, read on!

How Are Container Shipping Costs Calculated?

The cost of shipping a container internationally varies and depends on many things, like the distance between countries and the size of the container.

Generally, it costs around $1,378 - $6,894 if you want to ship a 20ft to a new destination. However, we will give you an idea of how shipping rates are calculated. Shipping companies calculate their costs using five factors, which we are going to discuss below:

The Volume of the Goods

There is not just one way to ship your belongings. If you are using sea freight, the size of your belongings is the most crucial factor. But if you are using air freight, the weight of your belongings matters more.

Type of Transport

How your belongings get to their destination will affect the price and how long it takes. If you want your things to get there quickly, you will have to pay more for air freight. Sea freight is much cheaper if you don't mind waiting a little longer.

The Destination Port

Some taxes and customs duties are unavoidable when importing goods into a country. The amount you have to pay will vary depending on where the goods arrive.

The Time of Year

International shipping has times when it is more popular. These are called peak seasons. The most popular time for international shipping is during the summer, between August to September.

Another busy time for shipping is between January and February. During these times, demand for shipping is higher, and prices are usually higher too. If you want to save some dollars on shipping costs, try avoiding these peak seasons.

The Distance

If you are shipping your belongings to a different country, it will cost more than if you are shipping them within the country. The price will also depend on whether the shipping company will transport your belongings from door to door or you have to make some effort. We recommend you choose a shipping company that offers door-to-door services, as this will prevent any headaches later on.

6 Factors that Influence Container Shipping Cost:

The factors that influence container shipping costs are:

Destination

There are different ways to transport your product. The cost of transportation will depend on the model you choose and the distance between the two points. However, most carriers have zones that determine how much you will pay for shipping. It even makes it easier to understand the shipping cost if we compare it with a pricing strategy based only on distance.

There are eight zones for shipping packages in the US. The closer to the starting point, the lower the shipping fee. If the box moves further away, the shipping fee gets higher.

Weight or Size

The cost of your package shipping will be based on either its weight or the box size. If the package is heavier, then it will cost more to ship. If the container is more extensive in terms of height, length, and width, it will cost more to ship because it takes up more room on the vehicle. So, choosing the right packaging boxes is essential for retailers. If you choose wisely, you can save on packaging materials and transportation costs.

Delivery Speed

If you need your package delivered quickly, it will cost more money. That is because the faster you want the package delivered, the more it costs to ship. But it is a problem for small and medium-sized eCommerce stores because they cannot compete with the prices that giant eCommerce stores like Amazon offer. Customers who are used to Amazon's fast shipping speeds will expect the same from other stores.

Packaging Materials

The type of packing material you choose can affect how much your shipping costs are going to be. Retailers spend about 10% of the product's price on the packaging.

You need to choose your packaging carefully. Some e-retailers order too large boxes, thinking they will get a discount for buying in bulk. But if you are using a carrier that charges by the size of the package, this can be more expensive than it needs to be.

You need to choose high-quality packing materials if you want to avoid product damage or returns. It will even save you money in the long run since you won't have to spend as much on shipping costs, and it will also protect your reputation so that future sales are not affected.

Warehouse

Other costs are associated with shipping your product. Before the order is sent out in a ship, truck, or plane, proper preparation.

Some tasks take a lot of time in a warehouse. It includes putting boxes together, stuffing material, securing them with taping, etc. Using machines or robots to do this task will also affect the shipping cost as these machines require maintenance.

Shipping Mode: LCL vs. FCL

LCL

If you don't have a lot of goods to ship, you may not need to use an entire container. Shipping companies have come up with a way for people to share the space of a single container when they have smaller amounts of cargo. Although also known as (LCL) 'Less Than Container Load.' However, your shipment will be combined with other shipments to fill a container.

Reasons to Choose Less than Container Load

It is the cheapest way to ship things. Hiring a whole container doesn't make sense if you don't have a lot of stuff. The stuff inside will move around and get damaged if the container moves.

LCL is an excellent way to move your things if you don't have many things to ship. It is a common way for students who will be gone for only a year. If you have more than 15 cubic meters, you should switch to FCL because it will be more economical.

FCL

It is when one customer uses the entire container for shipment. It is a good value because it is cheaper than the shipping company charges you per cubic foot.

An FCL is a type of shipping container that is safer and faster. With this type of shipping, your belongings will only be opened when they reach their final destination. With an LCL, belongings are unloaded and reloaded for each customer, leading to damaged or lost items.

Reasons to Choose Full Container Load

When you send goods in a container, it is usually better to send them in an FCL (full container load) instead of paying for the space your goods will take up.

FCL shipping is faster because you're not sharing a container with other people's cargo. That means that there is less waiting involved. Your belongings don't need to be loaded and unloaded at each port. They must be placed on a truck once it arrives at your new destination.

Your belongings will be safer if you use FCL instead of LCL. There is more risk involved with LCL because the goods are handled more often. It means they are moved from port to port, damaging them. FCL shipping is a better option if you have to import your things carefully.

Sea Freight or Air Freight: Which One is the Best for Container Shipping?

Another significant factor in shipping costs is your choice of transportation. It would be best to think about what is most important to you. Your choice will depend on how quickly you need your belongings and how much you want to spend.

Why Choose Sea Freight?

Sea freight is cheaper than air freight. If you want to save money, this is the best option. Shipping by sea is very environmentally friendly. It also will result in fewer carbon emissions.

Why Choose Air Freight?

Cargo planes are faster than ships. If you want to send your belongings quickly, cargo planes are the best way.

It will usually take 1 to 3 days for a plane to go from one global destination to another. It is much faster than a ship taking 32 days from the UK to Australia.

Different Shipping Container Sizes At a Glance

There are three sizes of containers available. Let's discuss them in detail:

20ft Shipping Container

The 20ft shipping container is the most popular type of container. It transports heavy machinery, raw materials, and cargo to ports. The 20ft is also famous for intermodal transport because it is light and easy to move around.

A 20-foot container can hold the things of a three-bedroom house. It includes beds, furniture, TVs, fridges, and storage boxes. A 20-foot container usually has about 33 cubic meters of space, but only 25-28 cubic meters can be used.

40ft Shipping Container

A 40-foot container is better value for money than a 20-foot container because it has twice the amount of space. If you want to move to a house with four or more bedrooms, a 40-foot container will be required.

Or, if you want to bring your car with you when you move, you will need a 40-foot container. It will give you enough room for your vehicle and the other things you are moving.

A 40-foot container can hold around 67 cubic meters of space, but only about 54-58 cubic meters can be used.

The 40ft container is widely used because it can carry twice as much cargo as the 20ft container. If a container is overweight, the user can be fined. That's why people prefer to go for a 40 ft container if they want to carry many goods.

40ft HC Shipping Container

A 40ft high cube container is used to move cargo taller than 8.1ft. 40ft high cube container is the same as a 40ft container. However, it's just a little bit taller. People usually carry consumer goods in this container.

Container Shipping Insurance: Why Is It Important?

santa-cruz-heavy-equipment-hauling-and-shipping-insurance.jpg

When shipping a container overseas, you must purchase container shipping insurance. It is because the cost of shipping a container is expensive.

You may be thinking of saving money by not purchasing insurance, but you should not do this. It is vital to have insurance if something happens to your container while it is being shipped. In the following, we will discuss some of the benefits of getting the insurance:

It will protect your belongings from any loss or damage that may occur. It also includes damage or loss caused by external factors, such as cargo abandonment, appropriate packaging, and customs rejection.
If your shipment is damaged or lost, general average coverage will help to pay for the damage. It even means that the other cargo owners transporting goods on the exact vehicle will have to pay you for the damage to your property.

Cargo insurance is based on how much your belongings are worth. It means the insurance cost will not be as high as you think.

Is International Container Shipping Safe?

The international shipping industry has made the process of moving abroad easier. The industry now uses different types of transportation to move goods.

It makes it safer and more secure. Steel containers are used in this process. Things can quickly move from one place to another by land or sea transport. In this era of digitization, customers can even track their belongings because most companies provide an ID which makes tracking easy.

Shipping Container Cost

You don't need to buy a shipping container, but some people choose to buy one because they can use it in many ways.

Shipping containers are used for more than just shipping. People have turned them into the following things:

Garden sheds
Art studios
Swimming pools
Trendy offices
Mini homes

A shipping container will last about 10-12 years if it is used on the ocean. However, it can also last 25-30 years if you look for the proper maintenance. Shipping containers are windproof and watertight, but they can rust over time.

The cost of a new 20ft container is around $5,000. The price for a secondhand container will be less than $1,200 to $2,500.

If you want to buy a 40ft container, these usually cost $5,306 for new and $2,600 to $3 300 for secondhand.

Estimate Your Container Shipping Cost by Yourself. Use a Container Shipping Calculator!

There are various things to consider when you are thinking about container shipping. One of the most important factors is how much it will cost.

You should never take a company's quote for granted. It might be very different from what you expect. That's why it's a good idea to use a container shipping calculator to get the estimated budget by yourself.

You can compare different companies' rates to find the best deal. But remember, these rates are only estimates. They will help you decide, but they might not be exactly right.

Advantages of Using a Container Shipping Calculator

The calculator will help you choose the company that will deliver your belongings the fastest and within your estimated budget.
You can save some dollars by calculating all the expenses in advance.
You can use the calculator to determine the estimated budget of the multiple companies and choose the reasonable one.

Conclusion

Container shipping is a viable way to transport goods both internationally and domestically. There are many benefits of container shipping, including the fact that it is an affordable option for businesses.

Also, it is a very efficient way to move goods, making it an attractive choice for companies that want to save time and money. Several different types of containers can be used for shipping, each with advantages and disadvantages.

The rates for container shipping are constantly changing, and it can be challenging to keep track of all the factors that influence them. However, an auto calculator gives you a good idea of what your shipment will cost.

We hope this article has given you some knowledge about what affects container shipping rates.

Value for Money	★★★★★	4.9
Vehicle Care	★★★★★	4.9
Fast Delivery	★★★★★	4.9
Friendly Staff	★★★★★	4.9