Port of Savannah Shipping: What’s Affecting Your Shipping Costs?

Posted by Port City Logistics on Nov 6, 2017 3:55:17 PM

Moving freight from point A to point B, from Port of Savannah shipping to Jacksonville for example, seems like a no-brainer. All you have to do is pack and load it up, and then send it on its way, right? Wrong.

Several factors come into play when determining the shipping cost of your freight. Among them are the type of transportation and freight class you are using. Your freight's ultimate destination and delivery time also impact the cost. And don't forget to add in fuel, mileage, and charges for any other equipment or services you might require.

Factors that Affect Shipping Costs

24.jpgWhat exactly can you do to keep shipping costs from adversely impacting your bottom line? Several things, actually. Shipping costs are determined by how big your packages are and how much they weigh; the more room your items take up on a truck, the more they will cost to ship. Package your items in the smallest amount of space possible, which will be most cost-effective. Keep in mind that unassembled items are usually cheaper to transport than assembled items.

Are you able to be flexible with your delivery time? If so, it will generally cost you less to transport your items. A guaranteed delivery time is a premium cost.

Where your package is being delivered to also affects your shipping costs. If it’s being delivered to a storage unit, construction site, or other location not accessible to the public, expect to pay more.

Supply and Demand

There are simply not enough truck drivers to handle the demand for shipping that currently exists, which is also helping to drive up the cost of transporting goods. Ports and rail lines are also becoming increasingly congested, which makes it challenging to get goods delivered on time. Add to that an ongoing chassis shortage in many parts of the country, and you can see why transportation costs continue to rise and are expected to continue to rise for the foreseeable future.

Impacts of E-Commerce

E-commerce is impacting the way the shipping industry does business. The proliferation of online shopping means more and more consumers are making purchases with a simple click, and the enticing free shipping option is making shopping from home even easier and more convenient than before.

Of course, this has also impacted the way shippers do business. Only giant companies - think Amazon and the like - have the resources to operate distribution centers in strategic locations that can easily serve their customers. And, more of those customers are ordering single packages with items that do not have to be delivered by the truckload.

When those single packages arrive at a distribution warehouse, they require more care when being transported to their final destination. They have to be loaded carefully on a truck and then delivered to the correct address on time, which can also boost transport costs. Be wary that even though retailers may offer "free shipping," those added costs will be passed on to the consumer in the form of higher prices for the convenience of shopping from home.

As you can see, a number of factors impact the cost of shipping an item from one location to another. Everything from the price of gas to how well the item is packed can and will impact how much it will cost to move the item from the warehouse to your front door. If you are seeking transportation services, contact our team of dedicated logistics experts working in the Port of Savannah shipping area, that will work with you to ensure on-time and on-budget delivery.

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