Compare International Shipping Rates with ShiprocketX

Consumers today expect low shipping rates, if not free shipping, from brands. They want quick deliveries at reasonable prices. However, slashing shipping rates for end customers means businesses must cut their shipping costs.

According to Prabhudas Lilladher’s report, 2024 saw a high jump of about 3-4 times in spot rates for shipping a 40-foot container, touching record highs of US $6,000 to $10,000 per container. Moreover, there have been two General Rate Increases (GRIs) within a few weeks in May 2024, which indicates a tight market. GRIs refer to increase in the base shipping rates charged by shipping companies.

While sellers are inclined toward selling internationally, higher shipping costs accompanying cross-border deliveries still remain an issue. 

In such scenarios, how do businesses stay afloat higher international sales while remaining profitable? The best way you can do this is by identifying the top factors affecting your shipping rates and deciding on the most cost-efficient choice.

What is Shipping Cost? 

The direct total cost incurred between picking the package from a shelf in your store or warehouse till the drop at your customer’s doorstep is termed as shipping cost of the package. These costs include: 

• Cost of packaging (boxes, stickers, labels, and tapes)
• Cost of labour (pack, pick, dispatch) 
• Courier charges (collection and delivery)
• Export/Import fee (applicable only for overseas shipments)

How Does It Differ For Global Shipments? 

Apart from the former mentioned cost factors, the prime factor in global shipping is landed cost. Landed cost includes a sum of the following cost factors:

• Purchase cost
• Transportation fee
• Duties and taxes
• Currency Conversions 

Landed costs always fluctuate, since the tariff varies depending on the country of export. In some countries, there are rigid security measures that delay the delivery process. A thorough knowledge of border policies are essential during such deliveries. In most cases, the import fee is taken up by the buyer, but sometimes the seller and buyer come to a mutual agreement to split the fare.  

Information Needed To Calculate Shipping Costs

Irrespective of whether you are a new or experienced seller shipping your product cross-borders, regularly running a shipping cost comparison ensures you are offering your customers the best deal without incurring any extra losses. To do this, you’ll need information regarding your courier for an accurate shipping cost calculation: 

• Origin and Destination  

The shipping cost largely depends on the location to which it is being shipped. The further the drop, the higher the rate. For instance, international shipping cost from India to the USA will be different from shipping the same package to the US. Leading cross-border courier partners like DHL, FedEx, and Aramex implement these shipping rates as per zones for international deliveries. 

The currency exchange rates for different countries can also affect the cost of international shipping.

• Weight Type

Courier partners usually charge your shipment based on the item’s weight (dead weight) or dimensional weight. Weight based pricing depends directly on the weight of your courier, while dimensional weight depends on the packaging’s length, height, and weight. If your parcel is large but light, you may get a shipping cost based on your product’s weight only. In another scenario, if your product is light but heavy, getting your rates based on dimensional weight would be much cheaper. 

As a retailer, one must identify the most reasonable weight measurement mode to save expenses. 

• Container Dimensions 

The dimensions of the container carrying your shipment can also be a reason for added shipping costs. All containers are not designed or don’t measure the same. There are different sizes to carry small or large shipments:

1. Standard and High Cube Containers: Standard containers include the commonly used 20 and 40-foot containers. Contrastingly, high-cube containers, which are quite popular, offer more height and additional space. These features make high-cube containers a little more expensive than the standard ones. So, we’d suggest you analyse the dimensions that best suit your shipment to avoid overpaying for unused space.
2. Specialised Containers: These containers are designed keeping unique shipping needs in mind. Some businesses deal in perishable or temperature-sensitive products. Thus, specialised containers have special features ingrained in them, like ventilation or refrigeration (reefers), to safely deliver such goods without causing any damage to them. However, this is a bit expensive. 

• Shipping Mode 

The route of shipping your product from pickup A to destination B can involve more than one mode of transportation. The cost differs depending on the carrier mode, whether it is by road, flight, or sea. Most shipping companies define shipping zones and carrier mode in their shipping plans to make shipping costs easier to understand and give an enlarged view of how much one has to pay. This is way more efficient and effortless than the conventional mileage-based pricing method. 

• Warehousing Expenses 

Drop and pickup of packages from warehouses isn’t what warehousing expenses are all about. Most often under the eye, the major part of warehouse expense goes into time-consuming tasks such as assembling boxes, inserting dunnage, and securing cartons with tapes and labels. The costs of incurring such extra tasks largely affects your overall shipping costs. 

• Delivery Speed 

Better things come at a cost, and this doesn’t fall short for delivery speed too. The faster you’d like your courier delivered, the higher is the pricing. For small and medium-sized businesses, this becomes a hurdle towards nailing a satisfactory customer relationship. Thanks to shipping aggregators that set a standard delivery charge for specific zones, expenses borne by SMBs and larger enterprises fall at the same pace. 

• Seasonal and Demand Inflicted Price Fluctuations

There are seasonal trends and upheavals in demand that businesses and shipping companies must deal with at different times in a year, like in the holiday season (Diwali, Christmas, etc.). In this peak season, shipping companies are loaded with incoming orders and even struggle to fulfill all of them in time, which certainly spikes the shipping costs. You’ll be in a safer spot if you take note of these fluctuations early on and start working out a plan to manage stock and large orders at this time. 

The market conditions and global events also interfere with shipping rates. There may be supply chain disruptions, like natural disasters or port strikes, which can hike international shipping costs. In this case, the safest bet is to stay informed about these ever-changing market trends and any potential disruptions. It’ll help you anticipate and manage such fluctuations.

How Much Does International Shipping Cost?

The cost of international shipping depends on the mode of transportation you choose to ship your goods. Some modes can be costlier or cheaper than others, hence curtailing or hiking shipping costs. 

For instance, air freight is the fastest way to ship orders globally but is costlier than land or sea shipping. The prices for shipping freight via air can range from $1.50 to $4.50 per kg, and handling charges at Indian airports may fall between 74 paise and Rs 2.22 per kg for general cargo. 

Road transport is the most suitable mode of transport when you want to ship goods at shorter distances within the country. The average cost for road transport can easily be anywhere between ₹37,000 and ₹74,000 for local shipments travelling across cities or states. However, the final shipping amount is based on the distance from the depot or port to the destination. 

Rail transport can be more cost-effective for longer distances. However, you may have to pay the extra penny for additional handling charges to load and unload your cargo. 

The last one would be intermodal transport, which is when you use two or more different transport modes to ship your cargo. For example, you may use road and rail to transport cargo to balance cost and efficiency.

Cost of Shipping Containers in India

Here’s an estimate of average costs of 20 and 40 feet shipping containers in India:

Container Type	Condition	Approximate Price Range (INR)
20 Feet Dry Container	New	₹1,73,000 – ₹1,89,000
	Used	₹74,000 – ₹99,000
20 Feet Refrigerated Container	New	Up to ₹12,40,000
	Used	₹4,13,000
40 Feet Dry Container	New	₹1,92,500 – ₹2,23,000
	Used	₹1,05,000 – ₹1,23,000
40 Feet Refrigerated Container	Used	₹4,13,000

Significance Of Calculating International Shipping Cost

In the era of first mover’s advantage, keeping a track of your competitor’s offers is of utmost importance. For example, your competitor is offering free shipping deals on specific deliveries. While it seems tempting to do the same to stay competitive, your profit margins vs expenses may not always balance due to higher shipping costs. 

When you’re in the loop of your shipping expenses, you can always opt to release flash deals on free shipping when a customer checks out with the order. Not only does this help your business build brand loyalty, but also gives your consumers trust and satisfaction. Result? More sales of course! 

Calculating Global Shipping Costs 

International shipping costs are calculated considering the dimensions (LxWxH in cm) and weight (in kg), and the destination country. The shipping company considers the actual weight (as displayed on the scale) and the volumetric weight while calculating overseas shipping rates for your shipment.

The volumetric weight is calculated considering the space your shipment occupies in the container vessel or aircraft. Out of the two weights (actual and volumetric weight), whichever is higher becomes the basis for calculating the shipping rate.

Considering these cost factors and information, you as a seller have the upper hand in determining the best international shipping cost for your cross border deliveries. Your customised decisions regarding logistics, packaging, transportation, and warehousing can help minimise your shipping expenses, with the exception of duty and customs charges. 

Conclusion: Opting For A Unified Solution For Minimal Shipping Cost

With an integrated freight planning of shipping prices, you can confidently take your business global without compromising on your customer rapport. Luckily, with ShiprocketX as your logistics partner, this is no more a far-fetched dream. 

ShiprocketX allows sellers to directly avail an International Shipping Rate Calculator to compare your shipping rate as per international standard rates. With rates starting at Rs 290/50 gms, you can now ship to over 220+ countries, including US, UK, UAE, and Canada. This smart logistics partner provides you with a one-place stop for inventory management, order fulfillment, automated label generation, faster deliveries, insurance on shipments, among others.