Why are shipping costs so high and how can you reduce them?

Introduction

On eCommerce forums and subreddits, one question keeps popping up: why are shipping costs so high? Global freight rates have surged in 2024; UNCTAD notes that the Shanghai Containerized Freight Index (SCFI) more than doubled compared to late 2023 after disruptions in the Suez Canal, Red Sea and Panama Canal. At the same time, shipping companies face shortages of containers, higher fuel prices and limited cargo capacity. For online stores shipping within Romania and across the EU, these costs directly impact product prices.

Why are shipping costs rising?

1. Route disruptions and higher fuel consumption

Blockages in major maritime passages have increased travel distances and fuel use, leading to higher operational costs. UNCTAD reports that freight rates on routes like Shanghai–South America surpassed USD 9,000 per container due to rerouted vessels and port congestion. For European markets, this means higher transport tariffs and longer transit times.

2. Container shortages and capacity constraints

After the pandemic, many shipping containers were relocated to US and European markets, leaving other regions short. The surge in consumer demand has overburdened fleets, and limited container availability drives up rates. Romanian importers pay more to bring goods in, and these costs flow to consumers.

3. Rising demand and limited supply

The boom in online shopping has resulted in record volumes of packages. High demand combined with fragile production and supply chains has pushed commodity prices up. Suppliers struggle to maintain stock and scale quickly, so shipping costs climb to cover the gaps.

4. Additional courier fees and surcharges

Carriers build several surcharges into shipping rates: volumetric weight, fuel surcharges, value‑added services (remote areas, weekend delivery) and fixed operating costs. These charges accumulate and make delivery more expensive for merchants and customers. Small businesses are particularly sensitive to minimum shipping fees.

5. Health risks and travel restrictions

New waves of Covid and other health events prompt governments to reinstate travel restrictions. This translates into cancelled flights, reduced capacity and higher logistics expenses, especially for international shipping.

How to reduce shipping costs

1. Compare rates and use a courier aggregator

One straightforward way to save is to compare rates across multiple carriers. Aggregator platforms let you view available options and choose based on price and speed. Our post on last‑mile delivery optimization explains how to select the right service for the final leg. For insights on outsourcing, see our article on outsourcing logistics services.

2. Optimize packaging and control volumetric weight

Shipping costs depend on either actual weight or volumetric weight. By reducing package dimensions and using efficient packaging, you can lower rates. Our guide on calculating volumetric weight explains the formula and offers packing tips.

3. Consolidate shipments and plan routes

Combining multiple orders into a single shipment and optimizing routes can cut costs significantly. Route planning tools, like those used by Altexpress, reduce miles driven and delivery times. See our posts on warehouse automation and last mile optimization for more details.

4. Choose alternative delivery options

Delivering to lockers or pick‑up points is often cheaper than door‑to‑door delivery. These options reduce last‑mile costs and offer flexibility for customers. Our posts on eco‑friendly packaging and reducing returns explain how these services also support sustainability.

5. Use a membership plan or negotiate contracts

Altexpress offers Plus and PRO plans that reduce shipping costs by up to 15–20% and include priority pickup and delivery. Negotiating volume contracts can secure preferential rates. Check our membership page for details.

How Altexpress helps

Altexpress acts as a courier aggregator and e‑fulfillment provider, allowing you to compare rates and choose the optimal option. It integrates multiple services in one platform: parcel pick‑up, warehousing, packing, AWB generation and last‑mile delivery. By partnering with international carriers, we offer fast delivery to the EU and US with negotiated rates. We also provide cost calculators and packaging advice. Explore our posts on Dropshipping in Romania and Top 5 European markets for Romanian products for more inspiration.

FAQ – Shipping costs

1. Why have international freight rates increased so much in 2024?
Rates have risen due to route disruptions, container shortages, higher fuel prices and surging demand. The SCFI remains above pre‑pandemic levels, and container scarcity and fuel costs are major drivers.

2. How do couriers calculate shipping rates?
Rates are based on weight (actual or volumetric), distance, fuel surcharges, value‑added services (weekend delivery, rural areas) and minimum fees. Each company uses a slightly different algorithm, but these factors are common.

3. What can small businesses do to reduce costs?
Compare carriers via an aggregator, optimize packaging, consolidate shipments and consider a membership plan. Avoid returns through clear product descriptions and secure packaging.

4. Are there cheaper options for international shipping?
Yes. Locker delivery, consolidated shipments and negotiating directly with an aggregator can lower costs. Altexpress offers special rates for popular EU destinations and the ability to choose among multiple carriers based on time and budget.

5. How do I manage deliveries during peak seasons (Black Friday, holidays)?
Plan ahead, increase stock levels, work with multiple carriers and communicate delivery times clearly. Integrating with a fulfillment system like Altexpress automates order processing and speeds up delivery.

Conclusion

The question “why are shipping costs so high?” has no single answer – it stems from a mix of global factors (route disruptions, container shortages, high demand) and local elements (fuel surcharges, courier fees). Yet by optimizing logistics, negotiating better rates and partnering with a reliable aggregator, businesses can keep costs in check. Altexpress gives you the tools to navigate this challenging landscape and turn delivery into a competitive advantage.