For an Operations Manager looking to ship products to Norway, there are several factors to take into consideration. Some of these costs are universal, such as currency exchange rates, tariffs and customs duties, while others are variable. For instance, you are likely to get a different quote from Norwegian shipping companies than you would from a general haulage provider based in the UK. It will also depend what type of product you are shipping to Norway.
When calculating what your shipment should cost, these are the factors to keep in mind:
Norway is not a member of the European Union, but EU trade standards still apply in Norway due to its membership of the European Economic Area (EEA) and European Free Trade Area (EFTA). Norway applies fairly low tariffs to imports of industrial and commercial goods, of between 3% and 6%. However, for imports within the EEA (of which the UK is also a member) there are no import duties to pay on industrial goods. Customs may apply to some food products and consumer goods.
There are some restrictions on imports of alcohol and tobacco. The Norwegian Customs Authority will have more information on their website.
All imported goods are subject to Value Added Tax (VAT), which in Norway is currently 25%.
Currency exchange rates
When dealing with Norwegian shipping companies and paying in Norwegian Krone (NOK) the relative cost will be affected by the GBP-NOK currency exchange rate. The NOK has been gaining in strength relative to the pound over the course of 2016. At the beginning of December 2015, one pound was worth 13.2 NOK. At the time of writing the GBP is worth 11.3 NOK. When making payments in NOK it is worth checking a reputable currency conversion site, such as XE.com for the most up-to-date rates.
Regarding transport itself, most companies calculate cost per kilo, or sometimes per pallet when shifting in bulk. The cost will vary depending on whether you require air freight, which is generally more expensive, or whether you are satisfied to use sea and road transport.
Air freight costs to Norway involve shipment to the destination airport, as well as handling fees, documentation, storage and quarantine fees (if applicable). If you are arranging this directly yourself, you will usually need to pay these fees at source in NOK. However, working with a UK haulage company means you can pay in GBP and allow your partner to make the arrangements on your behalf. Transfers, warehousing and onward transport by road constitute an additional cost.
Norway has an extensive and highly efficient network of commercial shipping ports. It is easy to ship goods to Norway and then have them transported to their final destination by road, although this is of course a slower method than air freight. When calculating road/sea shipment costs, you should take into account depot collection in the UK, customs clearance and any duties that need to be paid. Some haulage companies will also charge you a palletising fee.
Express or regular shipment
Many transportation companies conduct regular trips to Norway and other Scandinavian countries. Booking your shipment on one of these regular, scheduled deliveries will be cheaper than booking transport on an individual basis. How quickly you need to get your goods to Norway will also be a factor. Some companies offer express shipments in 27 or 36 hours, but deliveries will come at a higher premium.
NTEX: Your direct route to Scandinavia
At NTEX we offer a specialist logistics service that can take your products directly to Norway whenever you need it. We have been working in the local market since 2003 and have established relationships with reliable third parties in Norway, so we can deliver goods to your customers in the quickest and most cost-effective way possible.
To find out more, download our free guide: Shipping To Scandinavia With Ntex: How To Get Cost Effective, Flexible Transport To Sweden, Denmark, Norway and Finland.