Methods and Guidelines for Reducing International Freight Costs

Whether you are a cross-border e-commerce seller or a B2B exporter, how to reduce transportation costs while ensuring transportation efficiency is a challenge that every operator must face. Optimizing international freight is not optional, but a prerequisite for staying competitive.

As a professional international cargo fulfillment service provider, Stone3pl is well aware of the important impact of international freight costs on corporate profits and competitiveness. Today, let's take a deep look at the components of international freight costs, the factors that affect them, and how to effectively reduce these costs.

International freight refers to the cross-border transportation of goods by air, sea, rail or road. It covers everything from the transportation of raw materials from manufacturers to the last mile delivery of global e-commerce.

However, many sellers don't realize that freight costs are made up of multiple hidden fees. If not managed properly, these fees can significantly increase your overall shipping costs and reduce your profit margins.

Components of International Freight Costs

Shipping costs

Shipping costs are the most intuitive and largest part of international freight costs. It depends on many factors, such as the mode of transport (sea, air, land, etc.), cargo weight and volume, and transportation distance.

Air transport is fast but relatively expensive, and is suitable for transporting high-value, time-sensitive goods; sea transport is low-cost, but the transportation time is long, and is suitable for transporting bulk commodities.

Port charges

Goods need to be loaded and unloaded, stored, and declared at the port, which will incur corresponding costs. Port charges include loading and unloading fees, storage fees, terminal operation fees, document fees, etc. The charging standards of different ports may vary, and factors such as port congestion and operating efficiency will also affect the level of port charges.

Insurance costs

In order to ensure the safety of goods during transportation, companies usually purchase cargo transportation insurance. The insurance cost is determined based on factors such as the value of the goods, the mode of transportation, and the transportation route. Although the insurance cost will increase the cost of freight, once the goods are lost or damaged, the insurance can provide financial compensation for the company and reduce losses.

Customs clearance costs

International freight involves customs procedures, including customs declaration, inspection, and payment of customs duties. Customs clearance costs include customs declaration fees, commodity inspection fees, and customs duties. Different countries and regions have different customs policies and tariff rates, which will also affect customs clearance fees.

Other miscellaneous fees

In addition to the above fees, there may be some other miscellaneous fees, such as document processing fees, fuel surcharges, packaging and labeling fees, currency exchange fees, etc. Although the individual amounts of these fees may not be large, they should not be underestimated when accumulated.

Factors affecting international freight costs

Transportation mode selection

Different transportation modes have different cost structures and characteristics. Air transportation is fast but costly, while sea transportation is low cost but slow. Enterprises need to choose the most appropriate transportation mode based on factors such as the characteristics of the goods, delivery time requirements and budget.

Cargo characteristics

The weight, volume, shape, value and other characteristics of the goods will affect the freight cost. The transportation cost of heavy and large goods is relatively high; special goods such as fragile, perishable and dangerous goods require special packaging and transportation conditions, which will also increase the cost.

Transportation route

The length and complexity of the transportation route, as well as the traffic conditions and political environment along the way, will affect the freight cost.

Market supply and demand relationship

The international freight market is also affected by supply and demand. During peak shipping seasons, such as before holidays, freight costs may rise due to increased demand and tight capacity, while during off-seasons, freight costs may fall due to excess capacity.

Trade policies and tariffs

Different countries and regions have different trade policies and tariff rates, which have a direct impact on international freight costs. Increased tariffs will increase the import cost of goods, which will affect the company's profits.

7 practical strategies to reduce international freight costs

Optimize packaging and reduce volumetric weight

International freight is often charged by "volume weight", especially air freight and express delivery. Oversized packaging wastes space and increases costs. Using Stone3pl's smart packaging algorithm can reduce the use of packaging materials by more than 15%, reduce volumetric weight, and save freight from the source.

Consolidate orders and ship in batches

Instead of shipping multiple small packages, group orders and ship them together to reduce the shipping cost per unit. Consolidating multiple orders for shipment can significantly reduce unit shipping costs. Stone3pl provides order consolidation and smart sorting services to help customers achieve efficient fulfillment of "multiple orders per box" or "multiple boxes per ticket".

Choose the right mode of transport

Sea transport: suitable for bulk, non-time-sensitive goods, with the lowest cost;

Air transport: suitable for high-value, time-sensitive goods;

Railway/dedicated line: suitable for Central Europe, Central Asia and other regions, with high cost-effectiveness;

DDP dedicated line: suitable for e-commerce sellers, with transparent costs and worry-free customs clearance.

Stone3pl provides a variety of transportation mode combinations to help customers flexibly choose according to the attributes of the goods and budget.

Avoid peak periods and surcharges

During peak seasons (such as Black Friday and Christmas), transportation costs surge. Pre-stocking and staggered shipments can effectively avoid peak season surcharges and warehouse shortages.

Utilize overseas warehouses and distributed fulfillment

Pre-positioning inventory to overseas warehouses near the target market can achieve local shipments and reduce the frequency and cost of cross-border transportation.

Avoid hidden fees and duplicate charges

Through Stone3pl's full-process visualization system, customers can view fee details in real time to avoid additional costs caused by customs declaration errors, size errors, delayed pickup, etc.

Cooperate with professional 3PL to gain bargaining advantage

Stone3pl has stable route resources and a global carrier cooperation network, which can strive for more competitive freight rates for customers and provide one-stop fulfillment services to reduce overall operating costs.

Common user questions and pain points

How to choose the most suitable mode of transportation?

Provide professional transportation mode suggestions for enterprises based on the characteristics of the goods, delivery time requirements, budget and other factors of the enterprise.

How to deal with changes in trade policies and tariff adjustments?

Changes in trade policies and tariffs are external factors that enterprises cannot control, but Stone3pl will pay close attention to relevant policy trends and provide information and suggestions to enterprises in a timely manner. We can help enterprises optimize the layout of the supply chain, choose trading partners or regions with lower tariffs, and reduce tariff costs.

How to ensure the safety of goods during transportation while controlling insurance costs?

Stone3pl will recommend suitable insurance plans for enterprises based on the value and risk level of the goods. We will also cooperate with professional insurance companies to strive for more favorable insurance rates. At the same time, we will strengthen the packaging and transportation management of goods to reduce the risk of damage to goods.

Choose sea or air transportation?

If the cargo is large and timeliness is low, sea freight is preferred; if the cargo value is high and the delivery date is tight, air freight or dedicated line is more appropriate. Stone3pl can provide you with multiple price comparisons and recommendations.

As a professional international logistics and fulfillment service provider, Stone3pl provides global transportation solutions and warehousing networks to help e-commerce sellers and B2B companies achieve:

Multi-modal international freight (sea, air, rail, express)

Smart packaging and order consolidation to reduce volume weight

Global warehousing and fulfillment to improve delivery efficiency

Multi-platform order synchronization and automatic fulfillment

Real-time tracking and cost transparency to reduce operational risks

Stone3pl has rich international freight experience and a professional logistics team, and can formulate the best transportation plan based on the needs of the company and the characteristics of the goods. We will comprehensively consider factors such as transportation mode, transportation route, transportation time, etc. to choose the most economical and efficient transportation method for the company.

Stone3pl provides one-stop international freight services from warehousing, packaging, transportation, customs clearance to distribution. Companies do not need to deal with multiple suppliers, just connect with us to complete the entire international freight process. This not only improves efficiency, but also reduces communication costs and potential risks.

We have an advanced logistics information system that can track the transportation status of goods in real time and provide timely feedback to enterprises. Enterprises can keep abreast of the location, transportation progress and other situations of the goods at any time.

Contact Stone3pl to start an efficient international freight journey

If you are worried about the high cost of international freight, you may wish to contact Stone3pl. As a professional international warehousing and fulfillment service provider, we have rich experience and a professional team to provide you with a full range of international freight solutions to help you reduce freight costs, improve transportation efficiency, and enhance the competitiveness of your company.

Whether you are a B2B enterprise or an e-commerce seller, no matter which country or region your goods are shipped to, Stone3pl can provide you with high-quality services.