Sunday, January 25, 2015

International Shipping – Why is the cost of international shipping for Household Goods higher than for international shipping of commercial goods?

When it comes time to get pricing for international shipping, one of the first questions most international shipping companies will ask is “What is the commodity” or “Are you shipping Household goods and Moving, or is this commercial”.
There are many reasons for this, and all of them have an effect on the cost.

First and foremost, not all companies know how to deal with Household Goods.
Not only are there usually special requirements for packing and loading the container (something which is almost NEVER done for international shipments of commercial goods); The procedures for customs release are different; the rules for what can be shipped as Household Goods are different; and the services required in the destination country (such as sending a crew to unload the goods into a home and unwrap furniture) are different.
As such, these extra services require the use of companies that are capable of packing and wrapping; loading into a container or wooden crates; and unloading the container into a home.
Most international shipping jobs of commercial goods require NONE of these services.

Of course, most homes don’t have a loading dock capable of parking a truck the size which is often required for international shipping.
Next, the cost of Ocean Freight for international shipping is based on the commodity being shipped.
It is pretty obvious why a shipment of dangerous goods would be more expensive than a shipment of non-dangerous goods; however it may not be so clear that a shipment of new washing machines for resale would cost less than a shipment of used household goods for personal use.
The reasons why this is aren't important – the fact is that Household Goods are always the highest price for ocean freight.
(Household goods are also the lowest priority for ship lines as far as loading order).

Another reason that international shipping of Household Goods is more expensive is simply that most people who ship Household Goods require more time and attention from the shipping company involved.
The typical commercial shipper knows how to fill out the forms, and in many countries the process for release of commercial goods is simplified.

As you can see, even in the event that you plan on packing and loading the container yourself and unloading and unpacking the container yourself at destination, the costs will still be more than your neighborhood factory who is shipping the same size container of new clothing for resale to the same destination.