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Overweight Charges

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Updated on 12 Oct 20224 min read

Overweight charges are a common occurrence in international shipping and can often be a source of frustration for shippers. These charges can add up quickly and can often be avoidable with some careful planning.

In this article, we'll take a look at what overweight charges are, how they're calculated, and some tips on how to avoid them.

Containers viewed from above to represent overweight charges

What are overweight charges?

Overweight charges occur when a shipment exceeds the maximum weight limit for a given shipping method. These charges can vary depending on the carrier, but they typically range from $50 to $100 per overage pound.

How are overweight charges calculated?

Overweight charges in shipping are calculated by multiplying the weight of the shipment by the overweight rate. The overweight rate is typically a percentage of the base shipping rate and can vary depending on the carrier and destination.

What causes the freight rates to be so high and not come down?

There are several key factors that contribute to high import shipping rates and why they have not come down significantly in recent months. But the most prominent are carriers charging more per unit of weight and their SOP to prioritize low-volume shipments to save on fuel and operating costs.

Carriers are charging more per weight

Over the past few years, freight carriers have increasingly been charging more per unit of weight for their services. This has increased costs for businesses that rely on these carriers for shipping goods. There are a number of reasons why freight carriers may be charging more per unit of weight.

One reason is that fuel costs have risen significantly in recent years. This has led to increased operating costs for freight carriers, which they have passed on to their customers in the form of higher rates.

Another reason for the increase in rates is that freight carriers face increased competition from other modes of transportation, such as rail and trucking. This competition has led to lower rates for these services, which has put pressure on freight carriers to raise their rates to remain competitive.

Finally, the increased use of technology has also played a role in the increased rates charged by freight carriers. Technology has allowed carriers to track shipments more closely and provide faster service. This has led to higher demand for their services, which has translated into higher rates.

Despite the reasons for the increase in rates, the fact remains that businesses are facing higher shipping costs as a result. This will likely lead to increased prices for goods and services shipped by freight carriers. Businesses should be aware of the potential impact of these higher rates when budgeting for their shipping needs.

Carriers prioritize low volume/light shipments

Carriers began to prioritize low volume/light shipments in order to reduce their costs. This meant that they would charge more for these types of shipments but would make fewer trips with their boats and planes.

This resulted in the same amount of money being earned but with reduced boat movement and fuel costs. This trend has continued and is evident in the pricing structures of many carriers today.

Who is affected by high freight rates?

High shipping freight rates can have a significant impact on businesses and consumers alike. On one side, businesses may find themselves struggling to compete if their goods become too expensive to transport, while on the other, consumers may be forced to pay higher prices for imported products. In some cases, high freight rates can even lead to shortages of essential goods.

When will shipping prices go down?

There is no definitive answer to this question as shipping prices are determined by a number of factors, including global demand and fuel costs. However, some experts believe that shipping prices may decline in the next few years as the global economy begins to rebound.

Additionally, new technologies and initiatives, such as the development of electric vehicles, could help to drive down shipping costs in the long term.

How to address competitive freight rates

There are a few different ways to address competitive freight rates. One is to negotiate with the carrier directly. This can be done by requesting a quote from the carrier and then negotiating based on that quote.

Another way to address competitive freight rates is to use a third-party logistics provider (3PL). 3PLs can help you get the best rates by negotiating on your behalf and using their volume discounts.

Finally, you can use technology to help you find the best rates. There are a few different freight rate comparison tools available that can help you find the best rates for your shipments. Try requesting a quote on our website and find the best prices for your shipping needs.

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