How to Cut Sea Freight Costs in 2022
It’s no secret that the cost of sea freight has been on the rise recently. Between 2022 and 2023, the cost of shipping goods by sea is expected to increase by at least 12%. This can badly impact your bottom line, but you can keep your costs under control with a few simple steps.
Understand the Factors That Influence Sea Freight Rates
Many factors influence sea freight rates. These include the type of goods being shipped, the distance the goods will travel, the port of origin and destination, and the availability of ships. Other factors that can influence rates are government regulations, the time of year, and demand.
Seasonal changes can lead to higher rates due to increased demand or restricted supply. For example, rates may be higher during the peak shipping season because more containers compete for space on ships.
On the other hand, rates may be lower during the off-peak season because there is less demand for shipped goods. Generally speaking, it is best to send during the off-peak season when rates are lower and more space is available on ships.
However, this is not always possible or realistic. Therefore, it is essential to understand all factors that influence sea freight rates before booking a shipment.
Compare Quotes From Different Shipping Companies
When you are looking for quotes from different shipping companies, it is important to compare each company’s services. Some businesses may offer a lower price, but they may not be able to provide the same level of service.
For example, some companies might not be able to pick up your shipment on time or might not be able to deliver it to the destination on time. Other companies might charge a higher price, but they might offer a better level of service. For example, some companies might be able to pick up your shipment on time and deliver it to the destination on time.
It would help if you also reviewed the reputation of the shipping company. Some companies might have a good reputation, but they might not be able to provide the same level of service. It would be best to consider the reviews that other customers have given to the shipping company.
Some customers might have given a good review, but they might not have been happy with the level of service. You should also consider the size of the company. Some companies might be able to provide a better level of service, but they might not be able to pick up your shipment on time.
Use a Freight Forwarder to get the Best Rates and Service
A freight forwarder is a company that specialises in arranging the shipment of goods on behalf of its clients. Freight forwarders have established relationships with a network of transportation providers, which allows them to secure the best rates and services for their clients.
In addition, freight forwarders are experts in customs regulations and can help to ensure that shipments are processed quickly and efficiently.
As a result, using a freight forwarder can save both time and money. When selecting a freight forwarder, it is important to choose a company with experience shipping to your destination country. In addition, be sure to ask about the company’s tracking and insurance policy in case of lost or damaged goods.
By considering these factors, you can be confident that you will receive the best possible service for your shipment.
Plan Ahead to Save on Shipping Costs
As an online shopper knows, shipping costs can quickly add up, eating into your budget and leaving you less to spend on the items you wanted to buy.
However, there are a few easy ways to save on shipping costs.
- First, plan and order your items early. Many retailers offer discounts for early orders, and you’ll avoid the rush and stress of last-minute shopping.
- Second, take advantage of free shipping offers when they’re available. Many retailers offer free shipping for orders over a certain amount, so it’s worth planning your purchases accordingly.
- Finally, remember that retailers’ shipping costs vary, so it pays to shop around. By following these simple tips, you can easily save on shipping costs and stretch your budget further.
Ship Perishables and Other Sensitive Cargo
Cargo perishable or sensitive to temperature changes requires special care when shipping. Perishable cargo must be kept at a certain temperature to prevent spoilage, while sensitive cargo may be damaged if exposed to extreme temperatures.
For this reason, it is important to choose a shipping method that will protect your cargo from the elements. Shipping by air is often the best option for perishable and sensitive cargo, as it minimises the amount of time that the goods are exposed to potentially harmful conditions.
However, air shipping can be expensive, so it is essential to weigh all of your options before deciding. Ultimately, the best way to ship perishable and sensitive cargo is by choosing a method that will keep your goods safe and sound throughout the entire journey.
Ship During off-Peak Times to Save Money
Most people don’t realise that the time of year they ship can make a big difference in the cost. Rates for shipping services vary depending on demand, so it’s usually cheaper to ship during the off-peak season.
For example, rates for shipping by air freight are typically higher during the summer months when demand is at its peak.
If you’re flexible with your shipping dates, you can often save a significant amount of money by waiting until the off-peak season to ship. Of course, you’ll need to consider the potential for delays due to weather or other factors, but in general, off-peak shipping can be a great way to save money on your shipping costs.
Stay up-to-Date on Industry Changes That Could Impact Your Shipping Costs
As a business owner, it’s important to stay up-to-date on changes in your industry that could impact your shipping costs. For example, the rise of eCommerce has led to an increase in demand for package delivery services.
To meet this demand, shipping companies have invested in new infrastructure and technology. As a result, they’ve offered cheaper rates and faster delivery times.
However, these changes have also led to new surcharges and fees. For instance, many companies now charge a fee for residential deliveries. As a result, if you’re not keeping track of these changes, you could pay more for shipping than you need to.
So, make sure to stay informed about industry changes to make the most cost-effective shipping decisions for your business.
It’s essential to understand the factors that influence sea freight rates before deciding which shipping company to use. Comparison shopping is necessary, and utilising a freight forwarder can help you get the best rates and service.
When planning your shipment, be sure to consider any special requirements or restrictions – like perishables or sensitive cargo.
And finally, always make sure you get the best deal by comparing all-inclusive pricing. Shipping during off-peak times can also save you money, so stay up-to-date on industry changes that could impact your costs.
If you have any questions about sea freight rates or would like a quote for your upcoming shipment, contact us today!