Know-how rund um Logistik

Understanding shipping freight rates and container shipping costs

At Twill, we recognise that it’s very important for your business to know the shipping freight rates of your logistics. In this article, we explain everything you need to know around freight shipping costs, including guidance around which common service charges you might expect. 

Raju Kariya, 08 Dezember 2020

To give you an overview of inland and ocean freight rates, we want to look closerat those costs that appear on the ‘origin’ side. The origin side refers to all the different activities that occur in the country where your cargo is coming from. This includes moving it from the factory or warehouse to the port, storing it there and loading it onto the assigned vessel. 

The common origin charges in your container shipping rates

The logistics supply chain is a complicated process and there are a number of potential services throughout. The cost of these services will often depend on the type of cargo you’re shipping and the countries you’re shipping it to and from.

There are, however, some common service charges that we see almost every day. You can probably expect to appear when looking at container shipping rates

Terminal Handling Charges (THC)

Before your container can be loaded onto a vessel, there are a number of tasks that need to be done at the port. For example, just as we check-in for a flight, your cargo will be checked-in at the port a few days before vessel departure. When that date comes around it will need to be moved to the vessel using cranes to load the container on board. Your THCs cover the container shipping cost of these different tasks.

Verified Gross Mass Filing (VGM)

When your container is at the port it will be weighed by the carrier. This will be checked against the weight declarations you have supplied. There are regulations for some countries (China for example) where every container needs to be measured before boarding a vessel. If the weight you have filled doesn’t align with the weight at the port, then you could face extra freight shipping costs and delays.

Port security

Think of this like a parking fee! If your container is stored at the port it will be in a secure area – but there will be a lot of trucks coming and going to load/unload other containers.

The port security fee is charged as part of the security service provided at the port. It should be factored into your overall inland or ocean freight rates.

Seal Charges

When your cargo has been loaded into your container, it needs to be sealed to stay safe and avoid any damage – that’s what this covers.

However, there are many different types of seals and each country has some that they accept and some that they don’t. That means when you’re sealing your container, you need to make sure your seal is accepted in both origin and destination countries to avoid any shipping delays or additional freight shipping costs. 

Customs Clearance

Whatever you’re shipping, you need to declare your cargo. If there’s something suspicious or extra checks need to be made, your cargo may need to go through customs. Different countries have different regulations when it comes to customs and they may have different charges or prohibited items – so be aware. At Twill we realise the need to get your goods through customs and understand the challenges it may cause. That’s why we provide customs clearance services in more than 300 locations around the world. 

Know your Incoterms when calculating container shipping rates

These are just some of the charges that you can face on the origin side of your shipment – and there are many more. Whether you have to pay them all depends on the Incoterms you have agreed with the shipper of your cargo. That’s why it’s important to know your incoterms and to pick the right one. In some cases, the shipper will cover all freight shipping costs on the origin side.

Download our free Incoterms® eBook guide 

Beware of obstacleswhen it comes to the cost of container shipping 

There’s always the potential that shipping delays will be a barrier to your shipment. However, if you’ve brought your container to the port on time, then no extra charges will be incurred for delays. Our award-winning customer care teamand intuitive digital shipping platformcan provide assistance on freight shipping costs, including instant and transparent pricing.We’ll not only keep customers informed of possible delays as they happen but do everything to ensure that your cargo still arrives on time. 

What are ocean freight rates? 

Ocean freight rates are specific costs when using ocean shipping to transport cargo. With Twill, we provide ocean shipping as part of our comprehensive logistics service, pairing it with inland transportation to ensure your cargo reaches its destination.  

Rely on Twill for instant and transparent container shipping rates 

When using our digital platform, you’ll have access to instant container shipping rates whenever you select specific routes for our logistics services. This transparent inland and ocean freight pricing saves you time with unnecessary back and forth quoting, giving you more time and opportunity to reach your customers without any inconveniences.We also provide a single, comprehensive service that includes all methods of transportation, adapting to your shipping needs without delay. 

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