What information do you need in order to give estimates of shipping costs?

Being able to estimate shipping costs accurately is a very important aspect of international sourcing and manufacturing since it tells brands how to budget and plan timelines as well as how to manage the flow of inventory. Hula Global puts efforts into assisting customers with shipping cost estimates to help buyers understand the logistics involved and to avoid running into costs not accounted for.

Still, due to the many variables involved in international shipping, the buyer must articulate as many details and as much participation as possible. The shipping estimate becomes increasingly greater the more complete and accurate the details provided.

The foremost and most important detail needed is the exact address of the warehouse or the location where the goods are to be delivered, with an exact ZIP code. Shipping is expensive, and the costs associated do not need to be even close in estimate, as they will vary based on the location where goods are being delivered.

Address details are incredibly important, and remote, metropolitan, or port locations all vary in last-mile delivery and freight costs. When provided with a complete delivery address, the logistics provider will have the opportunity to optimally and accurately assess all variables involved in transport, customs, and delivery.

Buyers need to include a shipping address and a complete SKU (Stock Keeping Unit) inventory for the shipment, including quantities. Each SKU accounts for a product variant, which could be a style, size, color, or design.

Aside from the total number of items, shipping costs incorporate the diversity of products in the shipment, as this involves packaging, handling, and consolidation. A detailed SKU list aids in estimating the packing, palletizing, or containerizing of the shipment, which can influence the freight costs.

Buyers also need to include the size of the shipment. These are the length, width, and height of the packed items. These details are needed to compute the shipment's chargeable volume. In the realm of international shipping, the chargeable amount hinges on either the real weight or volumetric (dimensional) weight of the goods, whichever is greater.

The volumetric weight is determined by the amount of space the shipment occupies, regardless of its actual weight. If there are no precise size details, no one will be able to determine the chargeable weight. Thus, every estimate will be unreliable.

Buyers will also need to choose a method of transport, air or sea. This decision greatly influences both cost and delivery time. Air freight will be more expensive, but it has a much quicker delivery time. This is great for urgent shipments, samples, or small orders. Sea freight is a much cheaper option for larger shipments, but it will take longer to deliver.

Knowing which method of transport buyers would like will help Hula Global request the right quotes from air or sea freight companies and customize estimates accordingly.

Buyers also need to consider and declare which Incoterms (International Commercial Terms) apply to the transaction. This could be Ex-Works, FOB, CIF, or DDP. Incoterms state who has to take care of each of the logistics aspects of shipping, like who’s responsible for the transportation cost, or the insurance, the customs duties, and the risk in various stages of the shipping transit.

For example, in Ex-Works, the buyer carries the majority of the logistics responsibility, and in DDP, the seller takes on almost all of the shipping costs. This is why clarifying which Incoterms apply to the transaction is important to ensure the estimates include the right components of cost.

Beyond what we know so far, having even a bit more context in place can really help us get a more accurate estimate. Things like the shipping date, whether you're shipping at a particularly busy time of year, or if there are any special care requirements for your package, like it's fragile or needs to be packaged extra carefully, can all come into play.

Say you've got something that needs to be wrapped up with extra care, or maybe it's subject to some sort of customs check, that's likely to add to the overall cost.

If you know which logistics companies you prefer to work with or have specific delivery deadlines you're tied to, passing that on to us upfront is a big help. It lets us give you a quote that's much more tailored to your needs, rather than just making a wild guess.

The thing is, the more we have to go off of, the less back-and-forth we have to do - and the less chance there is that something new will come up and change the price of shipping at the last minute. We've seen it happen before: people give us a rough idea of what they're shipping, and then later on, they have to go back and fill in all the gaps, which just means delays and uncertainty.

So we actually encourage buyers to get as much of the information in as early as possible: the sooner we have a clear picture of what's going on, the better we can plan and get you a fair price.

Inflated fuel expenses, limited carrier access, port congestion, and the overall state of the global supply chain impact your shipping estimates. Even with all the information possible, estimates must remain tentative until the order is packed and ready for shipping. Still, the clearer the buyer is, the more reliable the estimate will be.

Simply put, for Hula Global to provide an accurate estimate of your shipping costs, we need your shipping address (including the full zip code), a full list of your SKUs and corresponding quantities, and the dimensions of your package so we can calculate volumetric weight.

Also, let us know your preferred shipping method (air or sea), and tell us the applicable Incoterms. When you provide this information early and clearly, it allows us to provide better estimates, so you can plan your logistics more efficiently and execute your international shipments seamlessly.

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