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Finding the Best Container Shipping Rates

by John Rediehs on May 31, 2016 No comments


When you’re looking for the best provider for freight shipping and you’re working on a budget, it can be helpful to understand the different charges that contribute to container freight rates. Learning more about what these charges are can help you find an accurate container shipping rate estimate and optimize the way you ship your products. You’ll be able to find the best container shipping rates available to keep shipments both smooth and inexpensive.

What Different Factors Contribute to the Container Freight Rates Index?

The total price it costs for a shipment will consist, typically, of three separate categories of charge: the base charge (basic rate), any mandatory surcharges, and extra services. Learning more about each of these categories will help you better understand why pricing quotes are what they are, as well as how you may be able to alter the way you ship to lower your costs.

Basic Container Freight Rates

These rates typically apply most accurately to steam ship freight. The basic ocean freight (BAS) is a transportation rate for moving your cargo. The price is determined by combining costs of varying factors, such as different origin-destination combinations, and cargo types, such as dry cargo or reefer cargo.

Potential Surcharges Influencing Your Container Shipping Rate Estimate

Mandatory surcharges are charges that aren’t covered by the basic ocean freight rate. These charges are established to cover cost items or services that are applicable to every shipment. There are three common surcharges: the bunker adjustment factor (SBF), the terminal handling charges (THC), and documentation charges.

Bunker adjustment factor charges account for the fluctuations in oil costs that the shipping vessel will incur. Oil costs change on a quarterly basis, so these rates are variable.

Terminal handling charges are based on the cost of handling shipping containers in the terminals, including loading and unloading containers to and from the shipping vessel.

Finally, documentation charges cover the costs associated with the necessary transportation documents that you’ll receive from the origin and destination locations, based on your shipping instructions.

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Utilizing a Container Shipping Rates Calculator

At Red Dog Logistics, we understand that our clients are always trying to find the best deal when it comes to their logistics services. Another factor that influences 40-foot container shipping rates is the supply and capacity of available vessels. Overcapacity has been a consistent issue within the industry, as the industry gravitates toward using so-called “mega-ships” that flood the trade lanes with excess capacity. When demand is low and capacity is high, prices go down and carriers will rely on tools to manage that oversupply.

To get a domestic container shipping estimate from Red Dog Logistics, you can use our rate quote tool, which is designed to give you an instant container shipping quote that you can either accept or reject. You can also name your own price, and we’ll accept or reject it quickly. If we reject that rate, you will have the option to accept your initial rate quote. Ultimately, our goal is to leave you satisfied with the best container shipping rate that works for you.

If you’re interested in a container shipping rate estimate for steam ship freight, contact us today for more information. We can make international container shipments easy and painless throughout the entire shipping process.

John RediehsFinding the Best Container Shipping Rates

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