5 Factors Which Will Drive Your Container Transport and Storage Costs
Shipping bulk cargo through the containers is one of the most prominent trade methods all over the world. Be it the national or international trade routes, the shipping containers have helped several businesses to establish a continuous trade link with efficient supply of cargo. With the containers varying in size, several types of cargo can be shipped easily from one place to the other, including the international ports.
However, before you start hiring a shipping company for the transport of your goods via the waterway trade routes, knowing about the transporting and storage costs will be of much help. Any shipping company will charge for both transporting the containers full of your cargo and also for storing them in the shipping warehouses. Truth be told, these container transport and storage charges are quite high, hence you need the estimation beforehand to set your budget.
This is why we have tried to bring out some of the major factors that affect the container shipping and storing cost.
Container type, size, and quality
The first factor on which the entire container shipping and storage costs will depend is the container attributes including type, size, and quality. Several types of shipping containers are there, such as the conventional aluminum or iron containers, containers having thermal insulated base, and others. So, the company will charge based on the type of container you need for the cargo.
Also, larger the container size, higher will be the overall costs. Choose a size which will be suitable for transporting your goods without any damage, and not always go with the big ones.
If your business depends on inventory, you’ve probably encountered the frustrating uncertainty of container costs. Luckily, even though they may be uncertain for speculative industries like wholesalers and retailers, there are only a few factors that affect the cost of shipping goods. Read blog about converting shipping containers.
The next and perhaps the most important factor which decides the container transport and storage cost is the shipping distance. Every country’s trade department levies charges based on two different shipping distances: local shipping routes and the international shipping routes.
The cost to transport your cargo through the local or national routes will be roughly around $300 to $400 based on the distance. But, for the international routes, the charges can go up to thousands of dollars or even more, based on the distance.
Weight and volume of the cargo to be shipped
Before the cargo is loaded on the ship’s deck, they are weighed and the total volume is measured. Apart from the container, you also need to pay the price for the total weight and volume of the goods you are shipping. More the weight, higher will be the container transport and storage cost.
For example, plastic and synthetic materials will cost you less as compared to furniture units because the former will weigh less. Therefore, while estimating the cost, always keep the overall cargo weight in mind.
Destination port and country
Another factor on which the container transport and storage costs usually depend is the destination port and the country where you are transferring your goods. Once the cargo will reach its destination port, you need to pay the custom duties and other taxes for unloading.
These custom duties and tax amounts will vary from one port to another and also according to the country. For this reason, before you finalize a shipping company, discuss the international custom duties and taxes you will have to bear.
Time of shipping and transporting
Just like any other trading method, the container transport and storage via waterways will also depend on the time of the trade. The waterway trades have their peak time during which the shipping and storing prices escalate due to the supply and demand chain.
So, unless it is extremely necessary, we would suggest choosing such a time when the trade costs are standard and affordable. This will reduce your overall expenditure by a huge margin.
Understanding the container transport and storage costs might be a little too complex initially. But, it is not that difficult once you understand the dynamics of the trade and the factors on which the costs depend.