For our clients, shipping is as easy as bringing the cargo to our drop off point and waiting for it to arrive at the destination. However, for a logistics company working out shipping rates is complicated.
Some of our clients wonder how we come up with the final figure. The calculation involves considering numerous factors. That’s why we give a quote to each client individually. Today, our experts would like to share how working out shipping rates to Sweden works to help you understand the complexity of the process.
What Do The Shipping Costs Depend On?
The following factors affect the shipping costs to Sweden.
- Cargo weight
- Cargo density
- Type of transportation
- Services required
- Freight type
- Freight class
- Oil prices
- Contract rates
Sea Shipping Costs
If your cargo is transported by sea, the numerous expenses include the charge per container, the cost of the bunker (fuel, which depends on the oil price), and the costs associated with clearing the cargo at loading and unloading ports.
The expenses also depend on the container type the goods require:
FCL (Full Container Load) - A flat fee is charged per 20’ and 40’ container. The amount depends on origin, volume, season, and a few other factors.
LCL (Less than Container Load) – If you don’t have enough cargo to fill a container, you can add your shipment to someone else’s (groupage shipping). The rate is charged per 1,000 kilograms or 1 cubic meter, whichever is greater.
The final calculations include BAF and CAF.
- BAF (Bunker Adjustment Factor) – Fuel charge for the sea transport
- CAF (Currency Adjustment Factor) – Currency exchange risk hedging
Air Shipping Costs
When it comes to air shipping costs, in addition to the cargo parameters, the logistics company has to consider the following factors.
- Terminal handling
- Customs clearance
- Inspection fees
- Custom duties
While Sweden and the UK are both members of the EU, the two countries are part of the European single market. Even though UK companies don’t pay any additional customs charges and tariffs when shipping goods to Sweden, they must take care of relevant taxes, such as VAT, according to the UK requirements. If taxes are in order, they don’t affect the shipping rate. This may change after 29th March 2019. Please check back regularly for updates.
The shipping rates usually exclude cargo insurance. It’s up to the company to consult the carrier about the proper insurance.
Land Shipping Costs
While shipping by land from Sweden to continental Europe is more cost efficient than by air, everything depends on the cargo type. One piece of land transport can’t handle many containers, thus increasing the cost of fuel and other expendable material factors. The travelling distance also plays a big role.
It’s not uncommon for the shipping expenses to approach 10% of the cargo cost.
Cost-Effective Shipping To Sweden From The UK
At NTEX, we’ve been in the shipping business for decades and know how to minimise your Anglo-Swedish shipping costs. Over the years, we have built relationships with numerous companies and carriers on route to simplify and speed up the shipping process while reducing the rate. Request a quote today and we’ll let you know how your shipping rate is worked out.