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Critical Elements Affecting Freight Prices in 2020

Many businesses are making use of freight shipments in order to ship goods and products to other parts of the country. And, if you are one that is making use of freight shipments, you will know that the prices are always changing.

The question that you need to ask, is what factors are affecting the freight costs, and what factors are going to affect the freight prices in 2020. There are so many factors that are affecting these rates, that it is hard to keep track of all of them. But these are some of the major factors that will affect the freight prices in 2020.

Freight shipment explained

First of all, what is the difference between freight shipments and normal shipments that you and I are ordering? The difference is actually easy to understand.

The normal shipments that we are using are small shipments for smaller products that we have purchased online. Or, that we have ordered and wait for the supplier to receive online. The shipment is small, and it doesn’t cost as much. With the freight shipments, it is large shipments. Meaning that it is actually cargo, goods, and commodities that are shipped by the means of air, land or water transport. Large containers at a time, not small packages that we know.

Weight and density of the shipment

The first thing that is affecting the freight prices is the weight and density of the shipment. The heavier the cargo, the more you are going to pay for the shipment. And, if this is a dense shipment, it will cost you also a lot more.

Meaning that if the shipment isn’t as heavy, but it is large, then it will not cost as much as the smaller shipment that is extremely heavy. Most of the costs are going by weight. And, then they are calculating it according to the other factors that you are still going to read.

Fuel costs that are changing all the time are affecting the prices frequently

If you are looking for the one aspect that is ensuring that the freight costs are changing all the time, then you should look at the fuel cost. This is an unstable cost that is sometimes cheaper than other times. Or, the price is increasing rapidly and then you are paying a lot more for your cargo to be shipped.

This is besides the weight and density of the shipment. This is also why the price of the shipment is never the same. Even, if you are shipping the same number of products with the same weight each time. It is changing all the time because of the fuel of the ships, airplanes, trains, and vehicles.

The distance between the shipment and destination

The other thing that is also influencing the prices of the freight shipment is normally the distance between the starting point and the destination. The further away from the destination, the more you are going to pay for shipments.

This means that if you are purchasing goods from a country closer to you, you will pay less in freight costs than the country that is further away situated.

There are many things that are influencing the costs of freight shipment in 2020. And, it is important that you make sure that you know what is influencing your total costs in freight shipments. Then, you will be able to make sure that you are going to get the best value for money. One thing to consider is how safe the freight service is. The more accidents they have, the less chance your shipment has to reach their destination.

BCR Australia is a leading Australian logistics company, specialising in freight forwarding (Brisbane, Sydney, Melbourne) and 3PL. They have extensive experience transporting goods to and from locations, right around the world.

Article Tags: Freight Prices, Freight Costs, Freight Shipment, Freight Shipments

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Nancy Whitman is a contributor to leading freight forwarding and 3PL company, BCR Australia.

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