freight forwarder

How Are Global Shipping Rates Determined?

The chaos of worldwide shipping is driving up international shipping costs. Freight costs are reaching $2.7 billion in pre-tax earnings. When it comes to international shipping rates, freight forwarder costs can be dependent upon many factors.

These factors can include things like location and shipping conditions. This short guide will give you all the ins and outs of international shipping rates and freight forwarding policies.

How Are Global Shipping Rates Determined?

International shipping can be a complicated and daunting process. The rates can vary on a wide variety of factors. But, through understanding the process, you can find a cost-effective way of shipping.

The benefit of e-commerce is the ability to ship globally through a simple set of rules and regulations. But this means shipping will be a longer, more expensive process.

First, you want to understand what the customer wants in terms of shipping and packaging. This can include details such as fast shipment, tracking abilities, and insurance.

The carriers are the ones doing the shipping for you. All major shipping providers are going to help you ship internationally. In addition, companies such as DHL and USPS may partner with local post offices to expedite the shipment process.


Documentation, including the dimensions, what you are shipping, and where it’s going, will attach to all shipping products. Each company must specify the incoterm along with their documentation. The incoterm is the individual or entity who will provide the duties and tax cost for the items.

The two terms one must remember while calculating the shipping cost are the DDU and DDP. DDU is an acronym for Delivery Duties Unpaid by Sender, while DDP stands for Delivery Duties Paid by Sender.

Make sure to use an international shipping calculator to help bake DDU and DDP into your shipping cost. These taxes and fees subtract from your margins as a business owner if you do not plan for them.

There is a risk of accidents occurring or companies losing packages in every shipment. So, each shipment should contain a type of insurance that acts as a safety net. This can also add to the shipment cost and needs calculation before shipment.

The type of packaging can add to the shipment cost. Therefore, companies should consider the type of material they use in shipping carefully.

The rapid growth of e-commerce is increasing the number of corrugated boxes on the market. This is a common material many companies use for durability. Once the shipment process is complete, companies will keep communicating with what is known as a freight forwarder company.

Freight Forwarder Services

A freight forwarder serves as a middleman between two entities. Freight Forwarders deal directly with factories and Port Authorities of a country’s destination. These companies also contain their freight shipping rates as well.

Freight Forwarders also communicates with the customs and border patrol agencies between the different countries. They are essential in importing your product from one country to the following destination country. These agencies deal with the tedious administrative tasks necessary in importing a product.

Global Shipping Rates Explained

The global shipment process continues to evolve as businesses delve into e-commerce. As a result, companies need to understand their shipment processes to help better their businesses.

A freight forwarder is an essential part of international shipping. Not only do they develop networks between these destinations, but they can also handle administrative needs.

Contact us for more information on freight forwarding services and international shipping estimates.

Atlanta Customs Brokers is one of the oldest and most trusted customs brokerage and shipping firms in Atlanta. Established in 1985, our company has been a fixture in and around the Atlanta airport and Savannah port for more than 31 years. We enjoy working with our international partners and enjoy what we do. If you are a first-time importer or exporter or a large corporation, we can handle your needs.