As your business grows, you might consider shipping goods overseas to international consumers. While entering new markets is an exciting prospect, understanding the costs involved is crucial to avoiding financial shocks. Origin charges can significantly affect the cost of shipping products internationally.
What Are Origin Charges?
Freight carriers and forwarders collect origin charges, also known as origin terminal handling charges, to cover the cost of processing your cargo. These fees usually apply to international shipments and include:
- Labor;
- Freight collection;
- Administration;
- Cargo loading;
- Storage; and
- Documentation.
You can pay origin fees at the port of origin before your handler loads your cargo onto a freight ship or aircraft. Paying origin shipping costs before dispatch ensures you fully cover the costs of handling your goods, preventing disputes further down the line.
How Much Do Origin Charges Typically Cost?
Origin charges depend on the shipping origin, as local tariffs vary between countries. Your freight carrier will calculate freight charges based on cargo size, the type of goods you're transporting, and the complexity of handling the load. For example, you may pay more for goods requiring specialized equipment or handling techniques. Therefore, there's no one-size-fits-all way to estimate your origin charges in advance.
Consolidating smaller loads into larger, less frequent shipments can help you minimize origin charges. It's also worth negotiating with providers and getting quotes from several carriers to find the most cost-effective solutions.
When Should You Be Prepared to Pay Origin Charges?
You should be prepared to pay origin charges whenever you ship goods overseas, regardless of the transport method. Origin charges can significantly affect the cost of moving goods, so factoring them into your financial plans is essential.
