Five Factors That Affect Ocean Freight Shipping Rates

2023-11-14 10:19:44

When it comes to sea ​​freight shipping rates, these can be affected and increase their value according to various variables that as merchants we must evaluate. In the case of containers, for example, aspects such as container size, container type, means of transport and even volume They are decisive when establishing the final price.

Nevertheless, they are not the only ones. Not only that, but there are others that we cannot control and arise as eventualities. Therefore, to make clear what are the factors that influence and modify the cost of an ocean shipment, in this article we leave you the five main elements that affect said cost. Among them we have the GRI, the season, the shortage, the EBS and any additional costs that can then be quoted. But let’s go in order.

GRI or General Increase in Shipping Rates

The GRI, acronym for General Rate Increase, refers to the global rise in shipping rates for container transportation. This is usually given in a standardized way at the beginning of each year or in the first quarter of each year. In this sense, the increase in the GRI means a direct impact on container transportation rates regardless of types or routes. Therefore, and if you are a carrier, you must quote this increase and include it in the price of your services.

Peak shipping season

In maritime transport, there are high and low seasons. When these are high, there is a lot of movement at the container level, so carriers often apply modifications to shipping rates. This is done precisely because it is high season (PSS), since these are months of great demand and activity.

In most cases, this coincides with summer or holidays, such as gift-giving seasons. The increase can mean up to 30% additional to the base price. To remedy this cost overrun, you can extend your delivery times, make your shipments in advance or work with a reliable logistics provider.

Vehicles and drivers in short supply

Many times, the high season brings another consequence that causes maritime transport shipping rates to increase even more. We refer to the shortage of drivers and vehicleswhich in high season are in high demand due to their low availability and the enormous amount of merchandise that must be moved.

As a consequence, there is a increase in prices in the maritime transport service. It is worth mentioning that this can also cause massive delays in the delivery of products.

Emergency fuel surcharge

The emergency fuel surcharge, also called EBS, refers to the unexpected and unplanned increase in the cost of fuel in a vehicle. Thus, carriers can appeal to this surcharge that will generate a fluctuation in market prices. The downside for traders is that EBS can be applied at any time, so even if you prevent this situation, you can’t avoid it. It depends a lot on your carrier being someone you trust and not taking advantage of it by charging you more in their shipping rates.

Other maritime transport costs

Lastly, there are eventualities that cause the cost of maritime transport to increase even more. This includes any type of unexpected delay, demurrage, detention and customs charges, etc. These elements are the cause of shipping rates in maritime transport skyrocketing significantly and significantly.

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The truth is that many of these costs are beyond the control of carriers. However, with proper management and documentation, they can be reduced to a minimum. As long as shipments have been correctly sorted, packaged and documented, additional costs can be avoided.

As you can see, there are many factors that influence the price of container shipping rates to increase. To remedy this, you can go to container shippers, who anticipate these variations in costs and offer you the most appropriate solution for it.

Therefore, we always recommend partnering with a 3PL with extensive experience who can help you. These usually work hand in hand with container shippers, taking advantage of discounts during the low season and avoiding increased shipping costs and rates.