In today’s globalized world, international transportation has become a common necessity for businesses and individuals. Especially for companies engaged in international trade, they need to purchase goods from one country and ship them back to their own country for sale. 80% of today’s international shipping occurs by sea. It involves cross-border container shipping. The reason why most people or businesses choose sea transportation is because the cost of sea transportation is lower. In this article, we will talk about the current situation of international shipping and how you can save shipping costs and create more profits for you.
What is international shipping
International transportation is the process of transporting goods or items across borders from one country to another.
Transportation method
It involves the transportation of parcels, parcels, containers or goods through various modes of transport such as air, sea, road or rail.
The process of domestic transportation or transportation between the same continent is relatively simple.
If the two regions are far apart, air freight can be used, but the price of air freight is higher.
Trucks are a more economical way to transport goods by air
If there is a lot of goods to be transported, rail transportation is the best way
International shipping across continents can be complicated
Air Freight: It is the most popular method for weighing up to 100 kg at high speed.
Sea freight: The transportation speed is slow, but the cost is cheap. For large quantities and heavy goods, sea freight is the best choice.
Railway transportation: It occurs in the transportation of goods with moderate transportation speed and low cost.
Reasons why freight is expensive
In the international shipping market in recent years, costs have continued to increase. Let’s analyze the reasons in detail.
Peak season
If you frequently ship internationally, you may find that shipping prices vary at different times. Every industry has its peak seasons, and international shipping is no exception. The peak shipping season generally begins in August and lasts until Thanksgiving. If you choose to ship at this stage, you may pay more for shipping. The peak season is here. The number of shippers will increase and the ports will become busy. There may not be enough suppliers to ship the product. As demand increases, costs increase, which is the basic factor for price increases.
Fuel price
Fuel prices play an important role in affecting transportation costs, especially in modes of transportation such as air and ocean freight. Fluctuations in crude oil prices directly affect shipping companies’ operating expenses. Despite efforts to optimize fuel efficiency and invest in alternative energy sources, fuel price volatility remains a major challenge for the industry.
Capacity restrictions
Capacity constraints are caused by various factors, such as labor shortages, including seafarers, port workers and logistics personnel, which will lead to higher labor costs and an overall increase in transportation costs. Other examples include equipment shortages (such as containers and ships) and port congestion. These restrictions will cause supply chain disruptions and increase operating costs.
How to save on shipping costs
Saving costs is vital to your business, and here are some ways you can save costs:
Transportation during non-peak season
The price of transportation in the peak season will increase by 100% or more than in the off-season. This can significantly increase your shipping costs. Therefore, tailoring your shipping plan in advance and choosing to ship during the off-season can save you a lot of money.
Choose the right shipping method
Before shipping, compare the costs of different shipping methods. Make plans in advance. For example, if you need a shipment in two months, it will be much cheaper to start planning now and ship it by sea. If you wait until two months later, you will have to choose air freight. This will be A big expense.
Work with a trustworthy service
Shipping companies are very important in terms of pricing and shipping speed. You can also negotiate for discounted rates if you frequently ship large volumes internationally.
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