Factors Affecting Shipping Costs in Australia

Do you know what affects the shipping costs in Australia? Many factors influence shipping costs; although you might already know some, a few might surprise you. It is essential to learn what causes the increase or decrease of shipping service prices to keep customers informed about what they avail from courier companies. It is also helpful in comparing services since by weighing more options, anyone can find shipping services suitable for their requirements. If you want to learn more about shipping costs in Australia, continue reading below.

This article features different factors affecting the prices of shipping services from different couriers. While our list contains more than one item, it could be missing a few. In this case, feel free to add those to your own list. Without further ado, here are the seven things that potentially influence shipping and delivery services’ costs.

Potential Components of Shipping Costs Calculation

Finding the balance between affordable and reliable services is the key to developing an effective logistics process. Besides global geopolitical events, several operations-related factors can impact shipping and delivery prices. As a courier company, knowing the areas to adjust to reduce costs ensures that operations remain afloat even amidst the most uncertain times.

1. Fuel Prices

Like many business operations, the ever-changing fuel costs play a vital role in shipping and delivery. No matter what type of courier service a customer avail of to send items from one place to another, all modes of transportation highly depend on fuel. When fuel prices are stable, freight, ocean freight, shipping container, trucking expenses, and other operational costs are cheaper. But the sad truth is that customers and courier companies can’t do much to prevent the hike in fuel prices.

2. Weather

Nothing would be more distracting to shipping activities than unforeseen weather conditions, especially in Australia, where it can get very harsh. Inclement weather conditions can adversely affect operations, causing delays and issues with the arrival of packages. And whether customers like it or not, ports and transportation hubs charge additional fees for the delay because of unforeseen circumstances, resulting in reduced customer satisfaction.

Although there is not much you can do about the weather, it is practical to check the weather forecast before sending packages. It gives you an idea of what to expect from the weather conditions in the coming days, thus, guiding you in planning when to ship parcels.

3. Distance

The third factor that affects shipping costs in Australia is distance. It is probably the most commonly known by regular shippers or not. The relation between shipping costs and distance is easy to understand. Sending a package farther from the origin to the destination is more expensive than shipping to shorter-distant places. When shipping overseas, expect to pay more.

Meanwhile, companies that provide shipping services abroad can reduce shipping costs by establishing shipping hubs in various areas. Expanding the network is another way for courier companies to reach more locations. The next time you send items, whether locally or overseas, check the shipping rates first.

4. Weight and Dimensions

The next factor affecting shipping costs in Australia is the weight and dimensions of packages. The relation between shipping fees, weight, and dimensions is similar to the distance and shipping fees. Larger and heavier parcels incur more expenses compared to smaller and lighter ones. Be clever with the packaging to save money when sending parcels. Use only the necessary packaging and labels to protect the items against potential damages.

5. Shipping Speed and Customs Duties

Shipping speed is optional when sending packages within or outside Australia. Some options include express shipping or same-day delivery, one of the fastest services a few courier companies offer. With fast delivery comes more expenses. So, expect to pay more when availing of these services.

On the other hand, customs fees are additional expenses when shipping to other countries. When shipping internationally, check the customs guidelines to be familiar with how the entire process works.

6. Delivery Surcharges

Delivery surcharges refer to miscellaneous fees incurred when shipping packages. Taking these expenses into account can be challenging. With that, it is vital to have a contingency plan to accommodate the changes in shipping fees. Surcharges come in different forms, and the most common ones are:

• Area-specific charges for rural, hard-to-access, or remote locations (usually those that are included in the courier’s network coverage)
• Handling fees for shipment of packages exceeding the set weight, size, and dimensions
• Residential surcharges for any businesses using a home address in private communities
• Fuel surcharges
• Weekend or holiday surcharges for overtime shipping

7. Insurance

While shippers are not required to purchase shipping insurance, it provides extra protection for your packages. It will be added to their shipping costs for those considering getting insurance, and shipping insurance is recommended for value products and rare items.

Shipping within Australia or Abroad?

Reach out to Couriers by Demand Express today by calling 02 9095 5000. Or you may also explore our website to learn more about our services, latest deals, and promos. Partner with us today, and reliable courier services are guaranteed!