Many shippers and friends often have the question, which international logistics company is cheaper? Actually, the issue of affordability is relative.


Because the weight of goods varies among different shippers, the method of shipment will also vary. In addition, the structure of the shipping market and port conditions will also affect freight prices.


1、 Transportation costs


There are many factors that affect the cost of maritime transportation. It is generally believed that voyage cost includes the capital cost of the vessel, voyage operating cost, and voyage variable cost. The operating costs of voyages and the variable costs of voyages are respectively referred to as fixed costs and variable costs. These costs mainly include: capital costs, which are the most basic costs of ships, including loans, interest, and taxes.


Operating costs are the recurring maintenance costs required to maintain the seaworthiness of a vessel.


The cost of voyage variation refers to the expenses incurred by a vessel for the transportation of a specific voyage.


2、 The structure and competition of the shipping market


The structure of the shipping market is one of the main factors affecting freight rates. Different market structures have different impacts on freight rates.


In the oligopolistic container liner transportation market, in order to avoid price wars caused by fierce competition among shipping companies, many companies in the market often form various forms of shipping cartels, forming a structural model of the liner transportation market.


3、 Goods


The type and quantity of goods are also important factors affecting the level of freight rates. Different types of cargo affect the utilization of ship's load capacity and hold capacity, resulting in different freight rates.


A more stable cargo flow and a large quantity of cargo sources can enable regular ships to have higher cabin utilization and better freight income.


The special requirements for loading and unloading goods, the difficulty of damage to goods, and the possibility of theft of goods will all be reflected in the freight rate.


4、 Route and Port Conditions


Different shipping routes have different sailing conditions, which have varying impacts on shipping costs. The distance of the route, meteorological conditions, safety, etc. will also be displayed in the fare.


The port conditions that affect freight rates include loading and unloading rates, port charges, port loading and unloading equipment, berth conditions, loading and unloading efficiency, management level, congestion level, and safety.


5、 Transportation contract terms


The transportation conditions stipulated in the transportation contract, such as the method of freight payment, cost responsibility, and the carrier's responsibility range, will all affect the price of the freight.


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