Understanding Rates
Understanding Shipping Rates
Quick Summary: How shipping rates are determined -- chargeable weight, trade terms, and what affects your costs.
Overview
Shipping rates determine what you pay for each order. Understanding how rates are calculated helps you optimize costs and make informed decisions about courier selection, packaging, and shipping methods.
[pref can_access_shipping_calculator] Your rates are configured by your Account Manager based on your rate card agreement. Use the Shipping Calculator to get rate quotes for specific routes before placing orders. [endpref] [pref !can_access_shipping_calculator] Your rates are configured by your Account Manager based on your rate card agreement. [endpref]
[pref can_access_shipping_calculator]
Quick Start
- Open the Shipping Calculator
- Enter origin and destination details
- Enter package dimensions, weight, and customs value
- Click Search or Get Quote
- Compare couriers by price and transit time [endpref]
How Rates Are Calculated
Chargeable Weight
Couriers charge based on chargeable weight -- the higher of:
- Actual weight: The physical weight of the package
- Volumetric weight: Calculated from the package dimensions
Volumetric weight formula:
$$\text{Volumetric Weight} = \frac{\text{Length} \times \text{Width} \times \text{Height}}{\text{Divisor}}$$
The divisor varies by courier (commonly 5000 for cm/kg) . The courier uses whichever weight is higher to calculate the shipping cost.
Tip: Smaller packaging reduces volumetric weight. Work with your Account Manager to optimize packaging for your products.
What Affects Your Rate
| Factor | Impact |
|---|---|
| Origin | Where the package ships from (warehouse location) |
| Destination | Country and postal code of delivery |
| Chargeable weight | Higher of actual vs. volumetric weight |
| Courier service | Different couriers have different rate structures |
| Package contents | Batteries, liquids, or other special items may affect available couriers and pricing |
| Customs value | Declared value affects duties and taxes |
| Trade terms | Whether duties are prepaid (DDP) or paid by recipient (DDU) |
Trade Terms
Trade terms define who pays customs duties and taxes:
| Term | Full Name | Who Pays Duties/Taxes |
|---|---|---|
| DDP | Delivered Duty Paid | You (the shipper) pay duties and taxes upfront |
| DDU | Delivered Duty Unpaid | The recipient pays duties and taxes on delivery |
| DAP | Delivered at Place | Similar to DDU -- recipient pays duties at delivery |
Note: Trade terms are shown as badges on courier results in the Shipping Calculator.
Charge Components
Your shipping charges may include several components:
| Component | Description |
|---|---|
| Shipping | Base courier shipping cost |
| Pick & Pack | Warehouse handling charges for picking and packing your order |
| Insurance | Shipping insurance (if enabled for the order) |
| Duties & Taxes | Import duties and taxes (for DDP shipments) |
| Fees | Additional surcharges (fuel, remote area, etc.) |
These components appear as separate columns on your invoices and pending charges.
[pref can_access_shipping_calculator]
Getting Rate Quotes
Use the Shipping Calculator to compare rates before placing orders:
- Open Shipping Calculator from your user menu
- Enter warehouse, destination, and package details
- Click Get Quote to compare couriers and rates
See Shipping Calculator for the full guide. [endpref]
Rate Changes
Your rates are defined in your rate card agreement. Rate changes may occur due to:
- Carrier rate adjustments (usually annual)
- Volume-based pricing updates
- Fuel surcharge adjustments
- New route availability
Your Account Manager will notify you of any rate changes.
Workflows
[pref can_access_shipping_calculator]
Workflow: Estimate Costs Before Placing Orders
When: You want to know shipping costs before committing to orders.
Steps:
- Open the Shipping Calculator
- Enter your origin and destination details
- Review the courier options, prices, and transit times
- Note the trade terms (DDP vs DDU) — DDP includes duties in your charges
- Use this information when creating orders to select the best courier
Result: You know the approximate shipping cost and can plan accordingly. [endpref]
Workflow: Reduce Shipping Costs
When: Shipping costs are higher than expected.
Steps:
- Check if volumetric weight exceeds actual weight — reduce package dimensions if possible [pref can_access_shipping_calculator]
- Compare couriers using the Shipping Calculator for better rates [endpref] [pref !can_access_shipping_calculator]
- Compare couriers for better rates — contact your Account Manager for rate comparisons [endpref]
- Consider DDU trade terms to shift duties to the recipient
- Contact your Account Manager to discuss volume-based pricing
Result: Lower per-shipment costs through optimized packaging and courier selection.
Workflow: Understand an Invoice Shipping Charge
When: A shipping charge on your invoice seems unexpected.
Steps:
- Open the invoice and find the shipment line in the Shipments tab
- Note the Courier, Destination, and Total columns
- Check if Duties, Taxes, or Insurance Cost columns have values — these add to the total
- Review the Packaging and Shipping columns for the base cost breakdown [pref can_access_shipping_calculator]
- Use the Shipping Calculator with the same route to compare rates [endpref]
Result: You understand the components of the shipping charge.
Troubleshooting
| Issue | Cause | Solution |
|---|---|---|
| Rate higher than expected | Volumetric weight exceeds actual weight | Check package dimensions. Consider smaller packaging |
| Unexpected duties/taxes | DDP trade terms include duties in your charges | Review trade terms. DDU shifts duty payment to recipient |
| No rate available for a route | Courier not configured for this origin-destination | Contact your Account Manager to set up rates for the route |
| Rate differs from calculator | Calculator shows estimates; final rates based on actual weight | Final charges are determined by the carrier's actual measurement |
| Multi-package order cost seems high | Shipping is one combined total for the whole order, not a per-package amount | Review the Shipping line in the order summary — it reflects the full order, not each package |
Related Documentation
[pref can_access_shipping_calculator] - Shipping Calculator -- get rate quotes [endpref] [pref is_invoice_ui_enabled] - Billing Overview -- view shipping charges on invoices [endpref] - Orders Overview
FAQ's
Why is my shipping cost different from the calculator estimate? The calculator uses the dimensions and weight you enter. Final charges are based on the carrier's actual measurement of the package, which may differ.
Can I negotiate better rates? Rate cards are set by your Account Manager. Contact them to discuss volume-based pricing or rate adjustments.
What is a fuel surcharge? Many carriers add a variable fuel surcharge that adjusts periodically based on fuel prices. This is included in your shipping charges.