Understanding the full picture of shipping costs beyond weight and volume
When requesting transport quotes, you’ll often notice that freight forwarders offer varying prices per kilogram (KG) or cubic meter (CBM). While these figures are important, focusing solely on them can lead to unexpected costs. Here, we explain why it’s essential to look beyond KG and CBM rates and which factors you should consider when evaluating a quote.
The 5 most important elements in a transport quote
Transport involves many steps, and each link in the chain can add costs. To avoid surprises, here are the key factors to consider.
1. Check the incoterm
The selected incoterm defines who is responsible for various stages of the shipping process and significantly impacts the final cost. A seemingly low price per KG or CBM may only cover transport to a port, such as Rotterdam, leaving you responsible for customs clearance and onward transportation.
When comparing quotes, it’s crucial to understand the applied incoterm and its implications for your responsibilities. A comprehensive cost overview can help you avoid hidden fees. Want to learn more about incoterms? Check out our overview of the 11 incoterms.
2. Understand actual weight vs. volumetric weight
Transport costs are often calculated based on either the volumetric weight or the actual weight of the shipment, depending on which is higher. Volumetric weight is determined by the space your shipment occupies in a container or vehicle.
For instance, a lightweight but large package may cost more to ship than a small, heavy package because it takes up more space. Always ensure you know both the actual and volumetric weights to avoid unexpected charges.
3. Consider the transport mode
Transport costs vary significantly depending on the mode of transportation: air, sea, or rail. Air freight is typically much more expensive than sea freight but offers faster delivery. Always verify which mode of transport is included in the quote, and ensure you’re comparing similar services to make an accurate assessment.
4. Factor in local costs
In addition to KG or CBM pricing, local costs can significantly impact the total cost of your shipment. These include:
- Handling fees at the port of origin or destination.
- Domestic transportation fees.
- Fuel surcharges (diesel/fuel charges).
These costs can vary widely depending on the freight forwarder and the country of origin or destination. Always ask whether these costs are included in the quote or will be charged separately.
5. Evaluate your transport options critically
There are often multiple ways to ship your goods, each with its own advantages and disadvantages. For example:
- Is sea freight cheaper, but air freight faster?
- Could consolidating shipments reduce costs by sharing space with other shipments?
Carefully weigh your options and choose the most cost-effective and reliable solution for your needs. Alternatively, consult an external expert, like Cargoplot, to help you identify the best transport strategy.
Conclusion
Focusing solely on the price per KG or CBM isn’t enough to make an informed decision about a transport quote. Ensure that the quote provides a complete breakdown of all costs and responsibilities. This enables you to make fair comparisons and avoid hidden fees.
Curious about the costs for your transport or why quotes might differ significantly? Contact us. At Cargoplot, we’re happy to help you understand your logistics needs and find the best solutions.
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