Why do freight costs vary so much, even for similar shipments?

When trading between Singapore and China, one of the most common questions business owners ask is “Why do freight costs vary so much, even for similar shipments?
The truth is, freight pricing is complex, influenced by global market trends, fuel costs, port congestion, container availability, customs duties, and more.
In this guide, Global Lacis Logistics Singapore breaks down the key factors that affect your shipping bill between Singapore and China, so you can plan smarter, reduce costs, and avoid unexpected surcharges.

1. Base Freight Rate – The Core of Your Shipping Cost.

Your base freight rate is the foundation of the shipping bill. It covers the cost of transporting goods between ports (for sea freight) or airports (for air freight).
Factors influencing the base rate:

Shipping mode: Sea freight is cheaper but slower; air freight is faster but costlier.

Container type: FCL (Full Container Load) vs LCL (Less than Container Load).

Route demand: Singapore–Shanghai or Singapore–Shenzhen routes may have different rates.

Seasonal trends: Freight rates spike during the Chinese New Year and holiday export seasons.

💡 Pro Tip: Booking early or combining shipments with a logistics provider like Global Lacis Logistics can help secure lower base rates and guaranteed space.

2. Container Type and Size

The type and size of container you choose have a direct impact on your total freight cost.

⚙️ If you’re shipping temperature-sensitive, fragile, or oversized cargo, specialized containers (e.g. reefer or open-top) will add a 10–40% premium over standard rates.

3. Origin and Destination Charges

Both port handling and customs operations at origin (China) and destination (Singapore) contribute significantly to your bill.
Common port-related charges:

• Terminal Handling Charges (THC) – For loading/unloading containers at ports
• Documentation Fees – For shipping instructions, bill of lading, etc.
• Port Security Fees – For inspection and security measures
• Customs Inspection Fees – Random checks or special verifications

These fees can add SGD 50–200 per container, depending on the port and shipping line.

4. Fuel (BAF) and Currency (CAF) Adjustments.

Freight carriers apply Bunker Adjustment Factors (BAF) to account for changing fuel prices and Currency Adjustment Factors (CAF) for currency fluctuations.
These surcharges can increase your total shipping bill by 5–15%, especially during volatile market conditions.

🌏 Global Lacis Logistics monitors these fluctuations and negotiates with carriers to help clients secure stable fuel rates whenever possible.

5. Customs Duties, Taxes, and Tariffs.

Singapore enjoys one of the world’s most efficient customs systems, but duties and taxes can still impact your total cost.
Key cost components:

• Import Duty – Based on the Harmonized System (HS) Code of your goods
• Goods and Services Tax (GST) – Typically 8–9% on CIF (Cost + Insurance + Freight) value
• China Export Tariffs – May apply for specific categories of goods

✅ Proper HS code classification can help avoid overpayment or penalties. Global Lacis Logistics offers customs consultancy to ensure your documents are compliant and optimised.

6. Incoterms: Who Pays What?

Your Incoterms agreement defines whether the buyer or seller pays for certain segments of the journey.

Selecting the right Incoterm can save hundreds of dollars per shipment and clarify responsibilities.

7. Additional Surcharges and Hidden Costs

Some fees are often overlooked but can quickly add up:

• Peak Season Surcharge (PSS) – Applied during demand surges
• Congestion Surcharge – Due to delays at major Chinese ports
• War Risk / Emergency Bunker Surcharge – Temporary global surcharges
• Container Imbalance Fees – When there’s a container shortage in one region
• Detention & Demurrage – Extra charges for late container return or port storage

⚠️ Always ask for a transparent freight quote.

Global Lacis Logistics provides all-inclusive quotations to help you budget accurately.

8. Value-Added Services That Influence Freight Cost.

Many businesses now require additional services beyond shipping alone, each of which adds incremental cost but often saves money in the long run:

• Cargo Insurance – Protects against loss/damage during transit
• Warehousing in Singapore – Short-term or long-term storage options
• Customs Brokerage – Professional handling of paperwork & duties
• Last-Mile Delivery – Door-to-door delivery from port to business address
• Real-Time Tracking Systems – Visibility and analytics for better planning

🚚 At Global Lacis Logistics Singapore, we offer end-to-end solutions, from freight forwarding and customs clearance to warehouse management and distribution, ensuring total cost transparency and efficiency.

9. How to Reduce Your Freight Costs Between Singapore and China.

Here are practical strategies to optimise your shipping budget:

• Plan ahead and book early – Secure lower rates before peak seasons.
• Ship in bulk – Consolidating LCL shipments into FCL saves money.
• Use optimised routes – Shorter transit times mean lower costs.
• Leverage long-term contracts – Fixed-rate agreements protect against surges.
• Work with an experienced 3PL – Experts like Global Lacis handle everything from negotiation to delivery.

💬 “Our mission is to help Singapore businesses ship smarter, faster, and more cost-effectively.”
, Global Lacis Logistics Singapore

Conclusion

Shipping between Singapore and China is the backbone of many supply chains in Asia.
While costs can fluctuate, understanding each component of your freight cost breakdown empowers you to make informed, cost-efficient decisions.

At Global Lacis Logistics Singapore, we specialise in simplifying complex international logistics—offering competitive freight rates, real-time tracking, and tailored solutions that give you complete visibility from port to doorstep.

🌐 Ready to optimise your shipping costs between Singapore and China?
Get a free freight cost consultation with our logistics experts today.
📩 Contact Global Lacis Logistics Singapore