How are shipping rates determined?
How are shipping rates determined?
Many factors determine how much you have to pay for a package you want to ship. By understanding these factors, it can help you to plan appropriately to lower the cost of shipping. We at RunRex have decided to take some time to explain to you of the different considerations that go into determining how much you pay.
The weight
Weight is amongst the most important factors in determining how much you will have to pay for a package. The weights are in different classes. For a certain weight class, you will have to pay a set amount. Even exceeding this weight class by a few grams can dramatically alter how much you pay. Ensure that you do not include unnecessary additions in your package. Besides that, choose a lightweight packing material to keep the weight low.
Distance
Typically, the longer your package has to travel, the more you will pay. It is also important to note that if the package goes beyond the area of delivery, the package is transferred to another carrier. This could lead to additional charges. Choose a company that has a global reach to avoid excessive charges.
Size of shipment
Typically, small packages will be billed more than a bulk shipment. Companies such as RunRex enjoy lower shipping cost because they ship in bulk. Thus, if you were shipping golf clubs directly, you would pay more than, if you used a sports equipment shipping company.
Freight class
Another factor that defines the cost is the unique characteristics of the package. For instance, fragile products may have to pay more than an ordinary shipment. In addition, the materials being transported will determine the cost. A good example is when transporting hazardous materials. These items require more consideration to transport. Consequently, the shipping company will have to bill the customer for all of these extra measures.
International borders
When a shipping company has to operate over international borders, it has to pay tax for the items it ships. Naturally, that cost is billed to the customer. It is especially so when the destination country has no special trade agreement with the country of origin. Thus, expect to pay more when shipping over international borders, even when the distance may be short.
The dimensions
This is another key consideration made by shipping companies. The dimensions of the package also take into account its weight. The calculations are based on a formula used to determine the density. Thus, if the package is very dense, it may be charged more, even when it is relatively small. For instance, a box filled with inflated balls may be charged less, although it seems to occupy a lot of space.
The minimums
There is a price point below which the freight company will not go, no matter what other factors are considered. The reason for this is that shipping uses up fuel and people have to get paid. Thus, the shipping company has to calculate a minimum at which it can still continue to operate.
Surcharges
Sometimes, the shipping company will charge extra for some services. For instance, the prices could go higher if they have to pick up the package from your doorstep. Besides that, they could charge higher when they have to deliver to inaccessible places. For instance, shipping a package to a prison may cost extra because of all the additional paperwork they have to fill in.
It may also lead to extra charges when they ship to a remote area. These are places where the road network may be poor, or the population is too sparse. In such a case, it is likely that they will only have few packages to deliver, which leads to a high cost for them to make deliveries.
The density
The density of a shipment will play a crucial factor in determining how much it will cost. The density is quite easy to calculate. It simply takes into account the volume of the shipment divided by its weight. If the density is high, the shipping company will charge more. It is important to note that density is measured using the longest sides of the package. Even if it is just a protrusion, it could still lead to high costs.
The season
The shipping business operates on a demand basis. Thus during the high season, shipping companies will charge more. To avoid this cost, you can simply ship your packages before the high season starts. This can help to save you a lot of money, especially if you are shipping many packages.
The arrival time
If you need your package to arrive overnight, then expect more. However, you can also choose to have the shipment delivered within a week or a month if you have no hurry. That way, you will pay the least amount to the shipping company. It is the reason why you should plan your trip well in advance.
