Shipping rates and how they are affected

BC’s leading trucking and warehousing company dives into the 5 factors that affect container shipping rates – stay informed and import with confidence!

Successfully navigating through fluctuating shipping costs and delays and pivoting when necessary should be part of every company’s business plan. Knowing what are the top factors that affect container shipping costs can keep your business on target to hitting those profit goals. Let’s dive into the top five factors that affect container shipping rates.

1. Cargo Weight and Volume

Depending on whether your container is traveling by sea or air, either weight or volume will matter more. The dimensions of your cargo will be most important in determining your sea freight cost whereas air freight will be more affected by weight. 

If you’re transporting via sea, filling up your container should be a top priority as optimizing the entire space will directly translate to a decrease in unit shipping costs.

2. The Distance

The obvious factor of distance plays a big role in determining the cost of shipping. The further away from the destination, the greater the costs. However, since cargo must be transported from the dock to its final destination, choosing the right trucking company also affects your bottom line. From LTL (less than truckload) and FTL (full truckload) shipping to rail, picking the right transport method and having an experienced trucking company working for you will save time and money. 

As the Port of Vancouver is centrally located in the pacific and therefore closest to the manufacturers in Asia, the volume of freight moving into Canada and then transported to the rest of the country (Alberta, Ontario, and Quebec) is immense. Having a trucking company with authorized access to all major ports and rails in Metro Vancouver is, therefore, a must.

3. Shipping Season

As with all goods and services, the transporting of freight also has peak season. There are two times each year to be exact and they are between later summer to December and the weeks leading up to Lunar New Year as businesses rush to secure inventory before Chinese factories shut down for the holidays. 

Though these are the general peak times, importers must also factor in the sudden changes related to covid as different countries deal with waves that come and go at different times. 

4. The Destination Port

Taxes and port service fees are all part of the cost of shipping. Depending on the arrival port, extra levies may also be imposed by the port authorities and these costs are most likely passed on to the shipper and affect the overall shipping costs.

5. The Currency

Companies that primarily move their cargo within the Canadian borders wouldn’t be directly affected by the fluctuations of the Canadian dollar and exchange rates. But, businesses that import goods are definitely affected by changes in the exchange rates as freight quotes are commonly quoted in the American dollar.

Container shipping rates are generally affected by the 5 factors listed above. However, as we’ve all learned in the past 3 years, the playing field can change at a moment’s notice. Having a strong and experienced trucking company, customer broker, and freight forwarder working for you can save you time, money, and unnecessary stress. They are the experts in the field and can help you prevent problems before they start. 

As a leading provider in container trucking and bonded sufferance warehousing in BC, we have authorized access to all major ports and rails in Metro Vancouver, 250 trailers, and our own equipment to fully support a seamless experience for all our customers. 
Our LTL and FTL services span across Canada with more frequent services to Alberta, Ontario, and Quebec. Contact us at (604)-276-9044 or info@sandhartrucking.com to learn about our efficient and seamless transportation options from the Port of Vancouver to all major destinations throughout Canada. We’re a one-stop shop for all your logistical needs.