Saving Costs On Airfreight

Saving Costs On Airfreight

by | Jul 25, 2024 | Air Freight, Importing, Shipping Logistics

 

Saving costs on airfreight can be valuable when shipping cargo internationally by air. While moving goods by air is one of the most convenient methods of transport, it may be costly. Over the last decade, the demand for this method has skyrocketed. The coronavirus pandemic further increased demand since customers bought more products online and rose imports. Expenses like fuel prices and other expenditures have further raised costs. Because of this, Shippers have found it increasingly beneficial to find strategies to increase savings. This article will explain the various costs of transporting freight by air and how you can save when starting.

Understanding The Costs Involved In Shipping Cargo By Air

Due to the numerous components involved in international shipping, there are different costs a shipper should be aware of. Before the air carrier transports the cargo, trucks typically move it to the loading port. This means that domestic transport can add to the entire cost of an air shipment. Other costs include the base rate, which covers the airline’s operational fees. Various factors affect the base rate, including volume, route, weight, season, etc. Other costs include security screening, customs clearance, peak season surcharge, etc. Fuel surcharges are fees included in airfreight and can account for over 30% of the total rate.

What Are Common Ways That Shippers Are Saving Costs On Airfreight?

 Some of the most common ways that shippers can save on air shipping include:

  • Consolidating Shipments – Consolidation is a process where a carrier combines smaller shipments into a single shipment. For airfreight, this can considerably reduce costs for shippers by paying only for the space you use. Other fees like handling also decrease with the grouping of cargo. Consolidation allows for faster transit times, too.

 

  • Shipping Off-Peak Times – Demand for transporting cargo internationally can determine the shipping cost. The peak season is when the demand for moving goods is at its highest. During this time, the price to ship tends to hike due to scenarios like limited capacity. Transporting freight during periods of low demand may result in lower rates and smoother operations.

 

  • Optimizing Packaging – A way to save on airfreight that shippers tend to overlook is using efficient packaging. Since air carriers have less space than vessels, they charge extra on volumetric weigh and space. It can be critical to optimize packing by removing packaging materials or using different crating to minimize bulk.

 

Using A Freight Forwarder

Another way to save when shipping cargo by air is using a freight forwarder. Freight forwarders are the middleman between the shipper and the carrier. Along with coordinating the movement of goods, they ensure the success of the shipment while finding cost-saving solutions. For example, they can offer the various saving methods mentioned in the article. Forwarders also have established relationships with carriers and can negotiate rates on the shipper’s behalf. Call A1 Worldwide Logistics at 305-821-8995 to speak to our expert freight brokers regarding your shipment’s success. Whether the transport method is air, land, or sea, we help streamline the transportation process.

Reducing Ocean Freight Costs

Reducing Ocean Freight Costs

by | May 30, 2024 | Shipping Logistics, Supply Chain, Transportation

 

A vital consideration a shipper must make when transporting goods internationally is reducing ocean freight costs. Shipping by sea is the most common way cargo moves globally, accounting for over 90% of international trade. Despite its popularity, there can be numerous expenses that may confuse even the experienced shipper. While certain fees are unavoidable, there are specific ways that shippers can reduce the overall price of transporting by sea. Whether you are shipping as an individual or from a company, this can benefit your supply chain. Saving costs is especially important with recent market conditions and the rise in container rates. This article will explain the best ways to lower expenses.

How Do Carriers Calculate Shipping Costs?

Ocean carriers that move freight internationally have different ways of calculating costs. It is crucial to note that cargo has base rates that depend on the shipment type. Other volumes include the weight, volume, distance, origin, and more. The mode of transport is also a crucial consideration. For example, containerships transport sea freight in different ways, including FCL (full container load), LCL (less than container Load), and RoRo (roll-on/roll-off). There are also additional fees like fuel and special handling surcharges. When importing into a country, there are also port terminal handling charges and customs duties a shipper should know. Shipments can also have optional insurance costs for cargo damage or loss.

What Are The Most Effective Ways of Reducing Ocean Freight Costs?

While there are numerous ways to save on ocean freight costs, the most popular ways that shippers use include the following:

  • Consolidating Shipments – Consolidation is a method of shipping where a shipper combines multiple orders into one shipment. The shippers share the transportation cost by fitting various shipments into one container. This can reduce costs, and consolidation can speed up the delivery and customs clearance process.

 

  • Negotiate With Multiple Carriers – Since countless carriers move cargo internationally, each has its shipping rates. A shipper can negotiate these rates and get the best quote amongst the transporters. Having solid relationships with steamship lines is critical in negotiating prices. Using online freight marketplaces to compare quotes is also ideal for finding cost-effective options.

 

  • Optimize Shipping Routes – A carrier’s route to transport freight directly impacts the cost. Shorter, more direct lanes are less costly than more extended ones. Avoiding routes with high congestion is also helpful, as it can increase costs and lead to other issues.

 

  • Pay Attention To Cargo Packaging – A way to optimize costs that shippers tend to overlook is to optimize packaging. Not packing cargo optimally can add extra volume and space, raising costs.

 

  • Ship Off Peak Season – Peak season is when shipping demand is high. This season usually starts in mid-August, goes to the end of October, and sometimes extends to November. An effect is that the cost of shipping internationally tends to rise. Deciding to ship before that period can help in saving costs.

 

Using The Help of a Freight Forwarder

Finding the best cost to transport your goods can be crucial for individual and business shippers. Another way to reduce ocean freight costs is to use the assistance of a freight forwarder to ship internationally. Forwarders are connected to a network of carriers and can negotiate the best rate to move your shipment. Contact A1 Worldwide Logistics at 305-821-8995 to discuss your cargo’s movement with our forwarders.