Get a Quote: Affordable International Container Shipping Rates (2024)

UNDERSTANDING INTERNATIONAL CONTAINER SHIPPING RATES

International container shipping rates play a crucial role in global trade, influencing the cost and movement of goods across borders. Whether you’re an importer, exporter, or logistics professional, understanding these rates is essential to optimizing your logistics operations and minimizing costs. At Ameritrans Freight, we simplify this process by offering competitive and transparent pricing. Get a quick quote now to see how much you can save on your next shipment while benefiting from our expert advice.

Container shipping rates, also known as freight rates, refer to the fees charged by carriers to transport goods in standardized containers across oceans. These rates are typically quoted per Twenty-foot Equivalent Unit (TEU) or Forty-foot Equivalent Unit (FEU) and can vary significantly based on numerous factors.

 

Key factors affecting international container shipping rates 

There are several factors that influence the international container shipping rates. These are;

1. Shipping Mode

There are two primary modes of shipping containers internationally: by sea and by air. Shipping by air is significantly more expensive, often costing up to five times more than ocean freight. While air freight is faster and may be necessary for time-sensitive shipments, ocean freight is far more cost-effective, especially for bulk cargo. If you’re looking to reduce shipping costs, consider our ocean freight services. Get a personalized quote today and see how much you can save

2. Time of the Year/Season

Shipping rates fluctuate with the seasons. The busiest periods for international shipping are typically from January to February and August to September. During these peak seasons, shipping rates increase due to higher demand. Planning your shipments during off-peak periods can help lower costs.

3. Shipping Route

The shipping route significantly impacts container shipping rates. Routes that are more frequently traveled tend to be less expensive. For instance, shipping from Los Angeles to major ports worldwide is more cost-effective due to the high volume of containers on this route.

4. Weight and Size of Cargo

The weight and size of your cargo directly influence shipping costs. Heavier and larger containers cost more to ship. Standard containers are typically 20ft or 40ft, with the latter being slightly more expensive but offering double the capacity.

5. Port Congestion

Port congestion is an ongoing issue that can drive up shipping costs due to delays and additional fees. With Ameritrans Freight, you can minimize these risks by leveraging our expertise in route planning and port selection. Contact us today to discuss how we can help you avoid costly delays.

6. Supply and Demand

Basic economics plays a crucial role in determining shipping rates. During periods of high demand, such as holiday seasons or post-pandemic recovery phases, container rates can skyrocket. Conversely, during low-demand periods, rates may drop.

7. Geopolital Events

Trade wars, canal blockages, or regional conflicts can disrupt normal pricing patterns, affecting international container shipping rates. By partnering with Ameritrans Freight, you gain access to a team that closely monitors global events and adjusts shipping strategies accordingly. Secure your shipment with us and navigate these challenges with confidence.

8. Shipping Destination

International shipping rates vary significantly based on the destination.

• Infrastructure: The development of transportation infrastructure, including ports and roads, can affect shipping times and costs.
• Customs Regulations: Complex customs procedures and regulations can lead to delays and additional expenses.
• Political Stability: Political instability and conflicts can disrupt shipping operations and increase risks.
• Economic Conditions: The economic conditions of the destination country can influence demand and supply, affecting shipping rates.

Here is an example of how shipping destinations affects shipping costs for two major regions

Shipping container to Africa:

• Infrastructure: Many African countries have limited infrastructure, which can lead to longer transit times and higher transportation costs.
• Customs: Customs procedures can be complex and time-consuming, adding to the overall shipping cost.
• Political Stability: Political instability in some African countries can create challenges for shipping operations.

Shipping container to India:

• Demand: India’s growing economy has led to increased demand for imports and exports, which can impact shipping rates during peak periods.
• Infrastructure: India has been investing in infrastructure improvements, but challenges remain in certain regions.
• Customs: While India has made efforts to streamline customs procedures, delays can still occur.

Different Types of Shipping Rates and Surcharges

• Base Rates: These are the fundamental rates charged for shipping containers.
• Surcharges: The following additional charges may apply;

Bunker Adjustment Factor (BAF): Covers fuel price fluctuations.

Currency Adjustment Factor (CAF): Addresses exchange rate variations.

Peak Season Surcharge (PSS): Applied during high-demand periods.

• All-Inclusive Rates: Some shipping companies offer all-inclusive rates that cover base rates and various surcharges.

How are shipping prices for containers calculated?

International container shipping rates are influenced by a number of variables that frequently alter and fluctuate based on conditions, the economy, and other considerations. Some of the factors that shipping lines consider while setting the shipping rates are;

• Route distance and complexity
• Port fees and canal tolls
• Cargo type and value
• Container size and weight

Note that; Rates may be based on weight (per ton) or volume (per cubic meter), whichever yields higher revenue for the carrier.

 

Strategies for negotiating international shipping rates

Negotiating shipping rates can help businesses secure favorable terms. Consider the following strategies when negotiating freight rates:

• Negotiate long-term contracts with carriers for more stable pricing.
• Utilize spot rates when market conditions are favorable.
• Consider alternative routes or ports to avoid congestion-related surcharges.
• Consolidate shipments to take advantage of economies of scale.
• Use a freight forwarder. Freight forwarders often have better negotiating power with shipping lines.

Understanding container sizes and costs

When comparing container shipping rates, the size of the container is a critical factor. The most common container sizes are 20ft and 40ft.

20 foot container shipping cost 

A 20-foot container, also known as a TEU (Twenty-foot Equivalent Unit), has the following dimensions:

• Length: 19.4 feet (5.9 m)
• Width: 7.7 feet (2.35 m)
• Height: 7.9 feet (2.39 m)

It can hold approximately 9-10 standard pallets and has a cubic capacity of 1,172 cu ft (33.2 m3) with a payload capacity of 55,126.9 lbs (25,000 kg).