How to avoid the high cost of international shipping?

25 de May de 2022

Every year, there are periods of high prices for international freight. This generates an increase in the cost of importing or exporting virtually all types of products..

How this can directly harm various sectors of commerce and industries, we will address ways to avoid paying more for international shipping in the import or export process.

 

Why international shipping increases?

How to sell direct to the final consumer, international shipping follows the law of supply and demand, the greater the demand and the less the supply., the more expensive the shipping becomes.

This price increase may be due to several factors., in the case of international shipping. However, the best known is PSS (Peak Season Surcharge), acronym for Peak Season Rate.

PSS occurs at certain times of the year, according to country. In these periods, shipping increases, due to the increase in the volume of cargo that needs to be transported, without increasing the fleet of ships or planes for this purpose.

When PSS interferes with international shipping?

PSS is always charged at specific times. In Brazil, PSS occurs from May to September, time when companies prepare for the end-of-year festivities, making as much stock as possible.

Between these months the level of imports go up a lot, mainly aimed at Christmas, what makes available space on ships, ports and distribution centers is drastically reduced.

With reduced space, both for storing goods and transporting (this is what makes shipping more expensive), there is a sudden increase in the price of international freight, as a smaller number of ships will be available for carry out the freight.

Besides that, in the same period, port capacity is limited, causing more ships to wait for unloading or loading of goods, which can lead to delays in delivery.

 

How to avoid the increase in international shipping?

The international freight increases due to the limitation of the international transport system and the flow to the sudden increase in the load flow. In this way it is necessary predict when this increase will occur, for it to be avoided.

In the case of Brazil, this period is already well defined, which is between the months of may and september, targeting the trade for Christmas. During this period, the shipping system gets overloaded, need to pay the PSS.

But how can this situation be avoided?? How PSS occurs on set dates, the ideal is to plan to carry out the shipping outside of that time, thus keeping the cost of shipping at normal or reduced values.

However, it may happen that your company needs to transport something during the PSS, in this case there is no way to avoid the extra taxation, but it is possible to avoid delays in delivery.

So that your merchandise does not delay, load sharing is recommended, allocating smaller spaces on ships, as there is a limit on how many ships can be unloaded at a time in a port, splitting helps to get at least part of the load more smoothly.

Another point is that with the smaller space allocation, it is possible to pick up freight with a rate lower than the total PSS, because space is being used that would be empty on a ship.

Want to know how to keep the cost of your international shipping under control?? Get in touch with Open Market, We have a team specialized in import and export.

get in touch with Open Market and find out how we can help you.

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