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5 Factors Determining Cargo Shipping Costs

While price is a major consideration when shipping goods, it’s important to understand the factors contributing to the overall cost.


Before sending goods through a shipping service, it’s best to know the estimates of shipping costs by first understanding the factors. They range from goods type and volume and shipping time to the fleets sending them. Find out more below.


Factors Impacting How Much Your Cargo Will Cost


1. Goods Weight and Size

Shipping companies first measure the weight and size of the goods to determine the costs. Heavier and larger items will surely incur higher shipping costs.


Shipping companies will usually consider the items’ actual weight and volumetric (dimensional) weight to determine which one of them incurs a higher fee. Therefore, the sender needs to pack the goods to be shipped efficiently.


See also: Prabowo-Gibran and Their Challenges in the Logistics Industry


2. Shipping Distance

The next element impacting cargo costs is the distance between the shipping origin and destination. Longer distances usually mean higher shipping costs.


More fuel will be needed to travel to a much further destination. Similarly, labor costs and the risk of cargo damage will rise on a longer trip.


3. Holiday Season

The holiday season is the perfect time for shopping. The demand for shipping services will rise, leading to shipping cost hikes.


4. Customs and Taxes

Customs and taxes are components of cargo costs in outward and inward shipping. However, they are variable prices because every country has different regulations and standards for import and export tariffs.


5. Special Protection and Handling

The last contributing factor is special protection and handling, specifically for valuable items, such as money, jewelry, gold and other precious metals, etc.


See also: Direct Impacts of Toll Road Network on the Logistics Industry


The cargo costs you pay when shipping goods are influenced by those factors. However, another crucial factor contributing to shipping efficiency and effectiveness is selecting the right and credible logistics service provider.


It’s best to choose a reputable logistics service provider, like SELOG. This transport company is a business line of PT Serasi Autoraya or SERA, a part of Astra Group, with extensive experience in the logistics and shipping industry.


SELOG is here to serve the customers’ needs in end-to-end logistics through diverse services, Including Contract Logistics, Shipping Services, Shipping Agency, Freight Forwarding Warehouse, and Yard Management.


See also: 4 Types of Warehouse Based on Needs


What are SELOG Services?


Shipping Services

We offer domestic cargo shipping services via quality sea transportation, focusing on the automotive, heavy equipment, and other cargo industries.


Shipping Agency

We collaborate with S5 Agency World, Asia’s largest shipping agency, to provide comprehensive shipping solutions.


Freight Forwarding

Our freight forwarding services ensure the safety, punctuality, and zero-defect transportation of heavy equipment and other cargo using various modes of transportation.


Warehouse and Yard Management

We provide warehousing and storage services for your supply chain needs, utilizing a Warehouse Management System (WMS) to continuously track receipts, picking, shipping, detention, damaged goods, and completed orders.


WMS allows customers to monitor real-time inventory status. We also provide additional inbound and outbound transportation services to ensure your goods arrive safely and without damage.


See also: Some Common Issues in the Logistics Industry


Driven by the latest digital technologies, SELOG Services not only bring greater convenience to your business but are also practical and efficient.


With its Astra Fleet Management Solution (FMS), SELOG provides businesses in Indonesia with IT-based comprehensive solutions for managing fleet vehicles.


Further information about SERA’s profile and its services, including SELOG, is available at its official website at https://www.sera.astra.co.id/.

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