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How the container shipping price is set

by:VIPUTRANS     2020-09-04
There are many factors that determine the price of container shipping. Due to the complexity of ocean transportation, as the team of shipping companies in the shipping market grows stronger and the trade exchanges between countries become more frequent, the price of container shipping changes more and more frequently. But no matter how it changes, the most basic factors that determine the price of container shipping will remain unchanged.

  First of all, the nature and quantity of goods determine the shipping price of containers. Obviously, the freight rate is determined by the different types of goods. Generally, the freight rate of goods with high value is also higher than that of low-value goods; the difference in cargo stowage factors affects the utilization of cabin capacity, naturally The freight rate is also different; the freight rate for a small quantity of goods is usually higher than the freight rate for a large quantity of goods; the quantity of goods also affects the utilization rate of the space and the tonnage of the ship. When it will cause a greater waste of capacity, the freight rate should also be higher.

  Secondly, the origin and destination of goods determine the shipping price of containers. The difference between cargo origin and destination involves port water depth, loading and unloading operation conditions, port usage fees, charging distance between ports, length of voyage operation time, whether it is necessary to pass through the canal, whether there is a fuel port on the route, and local Many factors such as oil prices affect route costs and operational economic benefits. Obviously, those with good port and route conditions should have lower freight rates than those with poor conditions because ship operators can obtain better benefits at a lower cost.

   Third, the date of contract cancellation and loading preparation will determine the shipping price of the container. At that time, the external market conditions will be quite different, and the market supply and demand will also be different. The contract date and the termination date will affect the freight rate. In addition, the length of the contract period also affects the level of freight. The freight rate negotiated for long-term transportation contracts is usually lower than that for short-term contracts.

   Fourth, the ship used. Different ships are used to determine the shipping price of containers, and their seaworthiness and cargo capacity are different, so the freight rate should be different; different ships are used, their technical status and safety guarantee status are also different, so internationally, it is often based on whether they hold The ship class determines the freight rate and insurance premium; different ships use different cost components, so the freight rates directly related to the cost must be different.

   Fifth, competitors determine the shipping price of containers. Under the conditions of a market economy, the number of competitors, their strength, and their strength in the market have a great impact on the level of freight rates. In the transportation market, competitors not only have different shipping operators, but also involve competition between shipping operators and operators of other modes of transportation. They each adjust the freight rate to ensure that they can obtain the largest share of freight.

   Sixth, other factors determine the shipping price of containers. The shipping industry, especially the international shipping industry, has been increasingly subject to government and regional intervention and protection, so various government measures will affect the level of freight rates. In the period when the exchange rate fluctuates greatly, in order to avoid economic losses caused by exchange rate risks, shipping operators often have to take them into consideration when formulating freight rates, or add special provisions in the contract appendix.
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