An overview of shipping costs

When you send a parcel you want to know what you're paying for. Understanding what makes up the total cost of shipping, or landed cost, can help. Here's a breakdown of six of the most common shipping charges.

Six of the most common shipping charges

Here we explain six key costs that contribute to a parcel’s shipping price:

1. Carrier fee
2. Duties and taxes
3. Broker fee
4. Handling fees
5. Dimensional weight charge
6. Insurance

1. Carrier fee

This is the price of shipping your parcel from A to B. It depends, of course, on what you're sending, where it's going and how quickly you want it to arrive. Shipping carriers will often take care of the other charges listed here too. In which case, they'll add them to the carrier fee.

2. Duties and taxes

When an international parcel enters a country or economic zone, the customs authorities might charge duty and tax on it, depending on the type of goods. Most of the time the receiver is responsible for paying, usually through the carrier or customs broker.

3. Broker fees

Customs brokers, often provided by your carrier, help goods to get through customs. If they pay duties and taxes on your behalf, or if your parcel needs non-standard processing at customs, then they’ll charge a broker fee.

4. Handling fees

If you're sending dangerous goods, a parcel that needs extra assistance to clear customs, or anything else outside of standard shipping and handling, then it may have handling fees, also known as surcharges or additional carrier costs. 

5. Dimensional weight charge

When a parcel’s dimensional weight is higher than its actual weight, so it takes up more space, then this charge may apply.

6. Insurance

If your shipment gets lost or damaged in transit then insurance can cover it. You can buy insurance when you book a shipment, or arrange it separately. 

The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to shipping. The Shipping Channel content, information, and services are not a substitute for obtaining the advice of a competent professional, for example a licensed attorney, law firm, accountant, or financial adviser.  If you’re unsure of the shipping requirements that apply to you, check with your carrier and make sure to check the rules and regulations of the country you’re shipping from and to prior to shipping. You can find this information on government websites.