Overseas transportation has mainly two routes the aerial and the oceanic route. Efforts have been around the world by innovative minds to improve the aerial methods of transportation of goods. Experts have been working on increasing the load carrying capacity but still the ocean freight is the most popular and ideal of the two. However, there are some points that transporters can consider before hiring a shipping vessel to ensure that he or she may not end up on the losing side.
- Capacity of the bunker
The bunker is the container that stores fuel for the ship. Shipping vessels run on fuel stored in these bunkers. If you live near or visit the port, you may hear the vessels are in the harbour for bunkering. Bunkering is carried out for refueling for the ships. Hence, the capacity of the bunker can directly impact the price of freight. Rise in the fuel price can influence the rate of cargo.
- Seasons and the goods
In freight service, there is no particular kind of the shipping material or type of goods. There are products like fishes, plastic manufacture, books, food items, etc. Moreover, for a particular type of items the rate may vary according to the season. Cargo rates for grain and fruits may be inflated during a particular freight season. The season influences the price and determines the rate for ocean freight route of transportation.
- Currency dealing
Fluctuating rates of exchange for dollars can make the process determining the expenditure for freight very confusing. Dollar is the common currency for the payments and transaction. Ocean freight rates vary according to the exchange rate and other duties that may be imposed on or levied at the rate of exchange.
- Terminal Cost
Terminal fees is another component that affects the ocean freight rate. It is the fees that are paid before the commencement of a journey and after the vessel has reached the destination place. Terminal fees are dependent on the port from which you embark the journey and the port at which the ship is supposed to go.
The port authorities charge for the security that they provide for the protection of the vessel and the contents. The security charges include security charges and any other charges that are imposed by the authorities. These service fees add to the rate of freight and thus it is advisable to plan the budget including the amount that has to be spent on the service charges.
- Fines and Fees
Overbooking and overcrowding may result in delays. A penalty may be imposed on the ships that reach the port late due to overcrowding. Therefore, fees and fines affect the ocean shipping rates.
The method by which the ocean freights work is the ‘economies of scales’. The container is loaded to their optimum capacity with the goods are to transport. The freight companies charge the client on the basis of the weight of the goods in the container. If the containers are not filled to their optimum capacity, it may result in a loss to the maritime transportation company. Although the quantity is less, the shipper may end up paying more freight charges in comparison to optimum quantity of goods.
Shipping the goods may appear to be costly for an outsider or someone new to the industry. Shippers involved in the maritime transportation business on a regular basis know that the freight rates are pre-set and are also standardised. Intermittent shippers can draw discounts from their business relationship and reputation.
Ocean Freight Rates: Drayage Services