International Factors That Affect Courier Service Pricing

It seems that as more and more people are using logistics services for business or personal reasons the price for sending goods and packages has become somewhat random as such that they change almost every other day.

The reason behind these changes in prices are factors that the business has no control over thus they manipulate the price range of logistics services depending on these factors. Although some may argue that local economic factors contribute greatly on the pricing, but it is actually the international variables that causes it. Here are some of the factors that greatly affects the pricing of logistical services.

Fuel

One of the most important factors to be considered in almost any service-related business is the fuel. As the price in fuel tend to fluctuate other services and commodities are greatly affected, including logistics. With logistics this is one of their main resources to efficiently deliver their services to other parts of the country, without such their business would be crippled.

Fuel prices greatly dictates the price range of the delivery service. For example, interstate freight services includes multiple means of transportation to deliver a good, thus id fuel prices skyrocket then service fee also instantly goes up as well.

Exchange Rates

Among many other factors exchange rates greatly affects not only the logistics and freight services for international trade but also it affects all other means of business that trod along the international trade, which is virtually almost everything.

If exchange rates between two currencies from two highly industrious nations become too imbalanced the result would be catastrophic for other countries that depend on such trade relation, thus it greatly affects the logistics services as well.

Size of Package

Another client-factor that could affect the service fee is the size of the package. It goes without saying, the bigger the package the bigger the work will be. But then again even if they are transported via the same vehicles, the means to which it is delivered from door-to-door is quite different since with a bigger package one would require more manual labour thus the price begins to go up especially if the package is heavy.

Geopolitical Factors

Some factors are way of out one control and that is the geopolitical variables at play. A very simple scenarios is that if a country has unstable geopolitical landscape, it is in most likelihood that corruption and abuse is rampant and it would only take a handful of courier services to venture into that area or country which of course would include hazard pay for the service crew that will be making the rounds and deliveries, thus it is very likely that with troubles political state there is fewer logistics services thus higher service charge is imposed.

As they have no control over these factors, for the business to survive, they have to adjust and implement new price range almost on a weekly basis to adjust to these international economic and political variables.

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