6 min. read
Why Is Shipping from the UK to the US So Expensive?
If you are from the US and want to purchase something from the UK, one question that might have crossed your mind is why is shipping from UK to US so expensive? In this article, we’ll answer this question in great detail.
When it comes to international online shopping, shipping costs can be a significant hurdle. But what are the factors that make international shipping so expensive? Understanding the complexities of logistics, tariffs, transportation modes, and market conditions can help you unravel this high price tag mystery.
So, let us take a detailed look at some of the factors abundantly responsible for high shipping costs between the UK and the US-
UK to the US International Shipping Costs: An Overview
When it comes to cross-border shipping, factors such as distance, package dimensions, weight, transport mode, and shipping method have a significant impact on the service cost.
If we talk specifically about shipping from the UK to the US, the distance between the two countries is over 4,250 miles. The time duration of shipping from UK to US can range from a few days to several weeks, depending on the shipping method chosen.
For such a long journey, you need careful planning and coordination. Here are some aspects that deserve your attention.
Mode of Shipping
The two most popular shipping modes for international shipping are via air or sea. Air freight is faster but also more expensive. The space limitation also makes air transport not the most ideal option for transporting larger consignments.
Sea freight, on the other hand, is slower but more economical. Also, compared to air freight, it is easier to transport larger consignments via sea.
Fuel Prices
For both air and sea freight, one of the major expenses is fuel. As you’re probably aware, fuel prices change daily based on international crude oil rates. When fuel prices rise, it inevitably results in increased shipping costs. If you’re interested in international shopping, find out if you order from Amazon UK in the US.
Regulatory and Custom Fees
The next answer to why is shipping from UK to US so expensive is the regulatory and customs fees. The customs regulations of the UK and the US are significantly different and this further contributes to making the entire shipping process more challenging. Here are some charges you should know about-
- Import Duties and Taxes
If you are in the US and purchase something from the UK, based on its classification and value you’ll have to pay import duties and taxes. All the commonly purchased products such as electronic appliances, apparel, food items, etc. fall under different tax categories and are subject to different tax rates.
- Customs Clearance
There is an additional fee involved in getting the imports cleared through US customs. As this is a complex process, shipping companies generally work with customs brokers and this increases the shipping costs further.
Shipping Insurance
As mentioned above, shipping consignments over larger distances like between the UK and the US by air or sea also involves a certain degree of risk, including theft, damage, or loss. Thus, you’ll need to purchase insurance as well. Most shipping companies generally include insurance fees in the shipping costs.
- Insurance Types
There are many different types of international shipping insurance products, including freight insurance, liability insurance, declared value insurance, and more.
Declared value insurance is the most common type of shipping insurance and is mostly used by international shipping companies. However, if you want to ship something expensive, you can also explore other insurance products.
- Risk Assessment
It is also important to know that shipping companies assess the risk of transporting your consignment. If your consignment is high risk, the insurance premiums will be high and this will lead to higher shipping costs.
Packaging and Handling
Why is shipping from UK to US so expensive? Packaging and handling is another contributing factor. Adequate packaging is crucial for the safety of your goods, however, it adds up to the shipping costs. Here are the related charges-
- Packaging Materials
There are many different types of packaging materials and their costs vary considerably. The shipping company will do the needful based on the type of product you’re importing, its size, and weight. Note that many shipping companies charge a flat packaging rate while many others charge extra based on the dimension and weight.
- Handling Fees
Based on the type of product you are shipping, there can also be an additional handling fee involved. This is charged for handling your consignment at shipping terminals or airports. However, if you are only purchasing a small product like a smartphone, there is generally no handling fee involved.
Market Demand and Competition
Even the market dynamics directly impact the shipping costs. Increased or decreased demand for shipping services, competition, and seasonal fluctuations are some important factors. Let us take a look at them in detail-
- Seasonal Trends
There are peak shipping seasons, such as the holiday period, when the demand for shipping services rises significantly. The higher the demand, the higher will be the shipping rates. Similarly, if it is off-season, the shipping charges are generally lower.
- Competition Among Shipping Companies
Simply search for “UK to US shipping companies” online and you’ll be presented with several options. Needless to say, the competition among these companies also affects shipping prices. If there are multiple companies offering similar services, the shipping rates are generally lower. But for regions or periods where competition is low, the rates can be higher.
Currency Exchange Rates
The fluctuations in USD/GBP rates are also responsible for fluctuating shipping prices. If the pound gains ground against USD, the shipping cost can be lower in the US. However, if the pound falls against USD, exporters in the UK will find their shipping rates going higher in dollar terms.
- Impact on Pricing
The smallest of changes in USD/GBP rates can sometimes result in substantial changes in shipping and purchase prices. As a customer, you should track USD/GBP rates before making the purchase and paying for the shipping service.
- Payment Methods
Moreover, payment methods you use for shipping services can influence costs. Some shipping companies charge extra for currency conversion and this further increases the shipping fee you pay for getting your purchase delivered to the US from the UK.
How to Reduce UK to US Shipping Costs?
Why is shipping from UK to US expensive? Now you know the reasons. But do you know you can reduce the shipping rates? Here are some strategies that can help-
1. Compare Shipping Services
One of the effective ways to reduce UK to US-shipping rates is to compare the shipping companies. There are top online shops in the UK where you can check the shipping rates of leading companies depending on delivery speed, weight, and size. Rather than visiting the websites of each shipping company, this method can save you time and hassles.
2. Bulk Shipping
If you want to purchase more than one product, you can get cheaper shipping rates. Most shipping companies offer consolidated shipping services where they consolidate multiple products into a single consignment. While the dimensions and weight of the products will still matter, this method is generally cheaper than shipping products individually.
3. Use a Parcel Forwarding Service
The most convenient method to reduce the shipping rates is using our UK to US parcel forwarding services. With our services, you can shop to your heart’s content from the UK or New Zealand and get all your purchases shipped to your address in the US quickly and cost-effectively.
Shipping from UK to US is Expensive But Now You Know the Reasons and Solutions
Now you know why is shipping from UK to US so expensive and the ways to reduce it. Right from the distance, market demand, to customs duties, there are plenty of factors contributing to the high shipping charges.
So, ensure you compare the shipping rates of popular companies and use a service like consolidated shipping to reduce the rates. And if you don’t want to do all the hard work, use Jetkrate parcel forwarding service.
FAQs
1. Why is shipping from the UK to the US so expensive?
Shipping between the US and the US is expensive due to factors such as distance, fuel prices, customs duties, packaging, and shipping methods.
2. What are the common shipping methods available for the UK to the US?
The most popular options are air freight and sea freight. While air freight is faster, it is more expensive. Sea freight is slower but more cost-effective.
3. How do customs duties affect shipping costs?
Countries levy customs duties on products arriving from other countries. Depending on the classification of the imported product, an extra fee is charged over and above the standard shipping fee.
4. How can Jetkrate help with UK to US shipping?
Jetkrate is a parcel forwarding service that allows you to shop from the UK and deliver the product to their local US warehouse. From there, the company ships the product to your address in the US.
5. What is consolidated shipping?
Jetkrate offers a consolidated shipping service wherein multiple products are consolidated into a single consignment to reduce shipping fees.