Naturally, all Australians, like any other people, hate paying for shipping. They also certainly do not like to incur hidden and additional costs. All of this happens because they do not know the exact rates and cost factors. Here we give you this information in detail. So that you enter the game with an open and enthusiastic vision. In this case, you can easily control your costs. Let’s see what factors affect your freight costs from/to Australia.
How do different shipping methods affect freight costs Australia?
What is the most important factor in determining freight costs Australia?
What are the Australian customs duties and taxes?
How do Incoterms rules affect freight costs Australia?
Topshipping and a cost-effective shipping
Sea freight , Air freight, Express
The shipping industry has provided you with air and sea services, depending on the type of goods you have. Just take a look at your bank account and delivery date. Then you can easily choose. Each shipping method has its own speed and benefits, which makes it have a different cost.
Sea freight from/to Australia
Australia is a good target market. Because its growth is impressive and promising. Ocean freight is a very popular shipping in Australia. If you have a bulky item, this is the most cost-effective option. In general, the price of sea freight is much lower than air. But it is suitable if you have enough time. Because the speed of the ship is much slower than fast aircraft. For example sea freight from China to Australia takes 3-4 weeks.
Main Australian ports
Ports are Australia’s main gateway to international trade with the world. Each port has different charges depending on the services it offers and its geographical location:
- Sydney. It is one of the most beautiful ports in the world.
- Hobart International Port
- Adeline International Port
- Melbourne. It is Australia’s most important maritime trade hub. It also manages 2.5 million containers annually.
Choosing the right port is very effective in reducing freight costs Australia. Because if the port you choose does not have the necessary equipment to load or unload goods, you have to provide it yourself. Or they may do so with available equipment and the product may be damaged. In any case, it costs more.
Air freight from/to Australia
Because Australia is a relatively distant continent, its only international transportation is by air and sea. If your product is valuable or small, you can take advantage of the air.
The air freight industry offers you different flights and air crafts with different speeds and costs according to the type of goods and your money and time.
Types of goods
It all starts here. You need to put the type of product at the center of all your decisions. It determines the method of shipping, packaging, port, etc. The most important thing to avoid financial losses and additional costs is to know the list of prohibited goods in Australia. In other words, what goods are allowed to be imported to Australia or what goods are banned from exported from Australia?
For example, importing crayons and cosmetics into Australia is very difficult and requires special permits. But the import of items such as meat and fruit is prohibited.
The most important goods imported to Australia are:
- Telecommunication equipment
- Information Technology
- Oil products
Packaging and Insurance
Whether you choose fast shipping or sea freight, your goods fall into the different hands and go through different processes. So it is very important not to damage it. Choose the packaging material that fits the product and insulate it well. You need to do 5 layers of inner packaging and 5 outer layers. for the right packaging, read here.
Also, to reduce freight costs Australia, always try to have light and durable packaging. Because if it makes the goods heavier or more bulky, the costs increase.
On the other hand, by insuring your freight forwarding, you protect your money and cold. In the event of an accident or damage, you can easily receive various compensation and benefits. To reduce freight costs Australia, the best strategy is to use maximum insurance coverage. Because it prevents the next heavy additional costs.
Australian Customs duties and taxes
Note that Australian customs are very strict. For example, if you do not clear the goods after three days, they will be lost forever. So try to prepare your cargo documents and permits before shipping. Label the necessary tags on the packaging. All tags need to have accurate information.
If you are careless, you will encounter many delays and the customs will not treat you well. If you are late, your goods will incur heavy fines and a lot of warehousing fees.
The classification of goods and other factors, including exemptions, concessions, and the existence of preference schemes determine the amount payable. When importing, you submit the declaration to the ICS . It will automatically calculate any duty, GST, Wine Equalisation Tax or Luxury Car tax payments that are required. On most products imported into Australia, customs duty is 5% of the value of the goods converted to Australian dollars.
Also, most goods will be subject to GST when imported. GST is applied at 10% of the Australian dollar value of the goods when imported.
Incoterms are one of the most important factors in determining freight costs Australia. These rules are to clearly define the duties of the seller and the buyer. No more problems with responsibilities and costs during the transaction. Because everything is written in the contract. There are different types. But the most popular are FOB and EXW. The last update was done this year. You can see it here.
For example, shipping a piece of furniture from the port of Australihttps://web.archive.org/web/20220125130910/https://topshipping.co/blog/freight-incoterms-all-you-need-to-know/a in a 20′ container to London costs $ 2,825 (AUD). Instead, you have to pay $3,912 (AUD) to carry it with a 40′ container.
The cost of an FCL shipping from Shanghai to Sydney is also $ 1,478. But it costs $ 1,028 by air. Or, for example, the cost of air freight from Ningbo Airport to Melbourne Airport is $ 992.
Topshipping can help you reduce your costs
Often everyone’s problem is that they do not have an exact price of their shipping. And not all companies are able to provide prices in full detail. At Topshipping, we offer you the most detailed shipping costs from/to Australia such as:
- Airport costs
- Warehouse fees
- Pickup and delivery
As a result, there are no hidden costs that will surprise and worry you. Before importing, be sure to contact us to make sure the work process is correct. Our experts can offer different options based on your product that have similar results with competitive rates. Spend your money right and optimally with us.