What is international shipping?
International transportation refers to the transportation of goods between different countries and regions by air, sea, or land, transporting goods from production to consumption. Due to the complexity of crossing national borders, multiple modes of transportation are required. It needs to comply with the laws, policies, tariffs, and relevant regulations of the country of origin, the country of destination, and international treaties. In particular, higher standards must be met when transporting dangerous goods. As an essential part of international trade, international transportation is key in promoting global economic exchanges and meeting consumer demand.
How much is international shipping?
International shipping costs are affected by various factors, such as the weight, volume, and type of the goods, the distance to be traveled, the shipping method selected, the carrier, and any time-sensitive requirements. Generally, the heavier and bulkier the goods, the longer the distance to be traveled, and the more time-sensitive the delivery, the higher the shipping costs. To give you a clearer idea of international shipping costs, we have broken down all cost categories using the example of sea freight.
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1. Ocean freight
This is the main cost of transporting goods and includes the basic shipping costs from the port of departure to the port of destination. Ocean freight rates vary depending on the distance, type of goods, shipping method (FCL/LCL), and shipping company.
2. Consolidation Fee
A consolidation fee may be incurred if the goods are shipped in less than a container load (LCL). This fee covers the cost of consolidating multiple small shipments into one container.
3. Bunker Adjustment Factor (BAF)
The Bunker Adjustment Factor is a surcharge added due to oil price fluctuations. When fuel prices rise, shipping companies charge a bunker surcharge according to a corresponding scale. This surcharge is usually adjusted regularly and linked to oil price changes.
4. Peak Season Surcharge (PSS)
Peak season surcharges are usually additional fees charged during surging shipping demand (such as before holidays). Due to the high demand, shipping companies charge extra fees to ensure shipping services during these periods.
5. Demurrage
Demurrage refers to the fees incurred when goods remain at a port or terminal for longer than the specified time. It is usually incurred when the container or goods remain stranded, and the fee depends on the number of days of delay and the charges at the destination port.
6. Detention Fee
The detention fee is the additional cost incurred when the shipper or consignee fails to return the rental container within the specified free-use period. The rental company or shipping company usually charges this fee.
7. Storage Fee
If the goods stay in the warehouse at the destination port for more than a certain period, a storage fee may be incurred. This fee is usually calculated based on the number of days the goods are stored in the warehouse and the size of the space occupied.
8. Per Diem
Per diem is usually a daily allowance the shipping company provides to the crew or carrier during transportation. This cost usually does not directly affect the customer but, in some cases, may be passed on to the shipper or consignee.
9. Tax
Tax includes customs duties, value-added tax (VAT), or other import duties that the destination country or region imposes on imported goods. Tax regulations vary from country to country, so it is necessary to understand the relevant policies of the destination country.
10. Customs Clearance Fee
The Customs Clearance Fee refers to the fees incurred during customs inspection and release of goods at the destination port. Some documents may need to be submitted, and fees may be paid during customs clearance to ensure the goods can pass through customs smoothly.
11. Customs Bond Fee
A customs bond is a security fee the shipper pays to ensure that goods comply with customs regulations. This fee usually guarantees the payment of taxes or duties and is only refunded after the goods have passed through customs.
12. Port Charges
Port charges are fees charged by the port. They usually include ship berthing fees, unloading fees, loading and unloading operation fees, and other fees. Port charges may vary depending on the port.
13. Terminal Handling Charge (THC)
Terminal Handling Charge is the fee charged by the port for handling containers during loading and unloading. It covers the handling and processing of goods at the terminal and usually covers the unloading, storage, and loading of containers.
14. Destination Charges
Destination Charges usually refer to the additional costs from the port of destination to the final destination, including the costs of final unloading, transshipment, and delivery.
15. Documentation Fee
The shipping line or carrier charges documentation fees for handling documents such as bills of lading, loading lists, customs declarations, etc. These fees are usually fixed and intended to cover the cost of document handling.
16. Additional Charges
In addition to the above charges, there may be additional charges in exceptional circumstances, for example.
- Urgent expediting charges: additional charges may be incurred when the customer requests priority handling of the goods or fast shipping.
- Special cargo handling charges: additional handling charges for dangerous goods and oversized goods.
- Insurance charges: Insurance charges are usually incurred if the customer requests additional insurance for the goods.
How much is international express shipping?
International express shipping rates vary depending on the package’s weight and volume, destination, service selected (e.g., regular or fast delivery), and shipping method. The following are sample rates for shipping a 2-pound package from New York to Toronto, Canada.
Courier | Delivery Time | Tracking | Total Cost |
Flat Export | 7 – 10 working days | Limited | $16.88 |
FedEx® International Connect Plus | 2 – 5 working days | Excellent | $18.03 |
UPS® Standard | 4 working days | Excellent | $18.14 |
Passport – Priority Delcon | 12 – 16 working days | Regular | $21.88 |
USPS – First Class International | 6 – 9 working days | Basic | $23.54 |
Asendia – e-PAQ Standard | 7 – 9 working days | Basic | $24.45 |
Asendia – e-PAQ Plus | 8 – 10 working days | Regular | $25.59 |
UPS Worldwide Expedited® | 2 working days | Excellent | $29.66 |
FedEx Ground® | 3 – 6 working days | Excellent | $32.05 |
UPS Worldwide Saver® | 1 working day | Excellent | $32.15 |
UPS Worldwide Express® | 1 working day | Excellent | $36.35 |
USPS – Priority Mail International | 6 – 9 working days | Regular | $47.39 |
USPS – Priority Mail Express International | 6 – 9 working days | Regular | $65.64 |
FedEx International Economy® | 1 – 2 working days | Excellent | $93.42 |
FedEx International Priority® | 2 – 4 working days | Excellent | $102.60 |
What is the cheapest method of international transport?
The cheapest method of international transport is usually sea Freight. Sea Freight is suitable for transporting large quantities of goods that are not urgent, as it takes longer but is relatively cheap. Compared to air Freight and express delivery, sea Freight has a lower unit freight cost and is especially suitable for bulky goods that are not urgent.
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What are the main components of international shipping costs?
- Basic shipping fee: This is the core cost of the shipping service, calculated based on factors such as the weight and volume of the goods, the distance to be traveled, and the shipping method selected. It is usually charged per kilogram or cubic meter, and different carriers and shipping methods have different introductory shipping rates.
- Additional fees:
- Fuel surcharge: Due to fluctuations in fuel prices, shipping companies may charge an additional fuel surcharge based on a specific formula or percentage on top of the base shipping rate. Against fluctuating global oil prices, UPS and FedEx fuel surcharges may rise further in 2025.
- Remote Area Surcharge: If the destination of a shipment is in a remote area, the carrier may charge an additional fee to compensate for the extra shipping cost to these areas. As the delivery network is optimized, more and more cities are being reclassified as “remote areas,” resulting in a 6%-7% surcharge increase in otherwise unaffected metropolitan areas.
- Oversize surcharge: An additional fee is charged for oversized packages that exceed specific size or weight standards. UPS and FedEx have significantly increased their large and oversized package surcharges over the past two years, and this fee is expected to increase by an average of about 26% by 2025, plus fuel surcharges of nearly 30%.
- Special Handling Surcharge: A special handling surcharge is charged for goods that require special handling, such as fragile goods, dangerous goods, and high-value goods. For example, if a FedEx customer is located on the East or West Coast and the average weight of the package exceeds 10 pounds, if a UPS customer frequently uses the 2-3 day delivery service and the package weighs less than 5 pounds, the surcharge will exceed 20% of the total shipping cost.
- Packaging fees: Generally, the courier company will provide basic packaging materials for free, but for some valuable, fragile, or special items that require special packaging, a packaging fee may be charged. Packaging fees are generally not discounted.
- Customs clearance fees: In international shipping, the goods need to go through customs clearance procedures, and the customs broker or freight forwarding company will charge a certain customs clearance fee. The customs clearance fee varies depending on factors such as the type, value, and complexity of customs clearance for the goods.
- Insurance premium: To protect the goods during transportation, the shipper can choose to purchase cargo insurance. The amount of the insurance premium is calculated based on factors such as the value of the goods, the mode of transportation, and the insured amount.
- Other fees: These may include storage, pick-up, and delivery fees. If the goods must be stored during transportation or picked up and delivered from the warehouse at the origin or destination, corresponding fees will be incurred.
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