One of the most popular questions we get asked is, ‘How is freight calculated?’. When we look at shipping products internationally, understanding the cost is one of the key considerations as to whether this venture is viable. And, this becomes even more important when we look at international freight movement for commercial means. So, how are freight charges calculated? And what factors could cause these to change drastically?
Freight charges explained
Charges associated with freight are those given to the carrier company or freight forwarder in exchange for the transportation of goods to the final destination point as agreed. They differ depending on a number of key factors:
- Mode of transportation.
- Distance of travel.
- Location of destination.
Freight shipments are either charged as Freight Collect or Freight Prepaid.
Freight Collect / Freight Prepaid
Freight collect shipments require the shipment recipient or the consignee to pay for the shipping fees as well as any additional or ancillary charges. This payment is made as soon as the item is collected from the pick-up location. It immediately becomes the property of the receiver.
Freight Prepaid shipments are where the shipper is responsible for all charges and fees. The buyer takes ownership of the shipment once it has been picked up by the carrier.
What factors impactor freight fees
It is very difficult to put a blanket answer out there for this type of question. This depends on the unique shipment you’re making and any additional factors that are needed to ensure it reaches the end destination safely. As we mentioned above, transportation mode and location have an impact. But other factors to consider are:
- Weight – Freight shipments are larger and heavier than standard parcel shipping. Generally, these encompass a weight of more than 150lbs. The heavier the shipment, the more expensive your freight fees are likely to be.
- Quantity – Depending on the amount of items or size of your shipment, you may pay more or less. Whether or not your shipment fills a standard container will have an impact on fluctuations in freight shipment prices.
- Journey Stops – If you have a large shipment with multiple drop off points, you are likely to pay more for the time constraints that this creates.
- Speed – If you require a shipment to arrive at the end destination in the shortest time frame, you will have to pay additional fees to benefit from this service.
- Tariff rates – If you are looking to ship your freight independently, you’re likely to pay higher tariff rates. Working with an experienced freight forwarder, such as Radius Warehouse and Logistic Services, will afford you a discount. This is particularly favourable if you have large freight requirements or bespoke needs.
If you would like to speak to a member of our team about freight charges, feel free to get in contact today.