Freight Rates Are Not the Real Reason You End Up Paying More
When shipping goods from Vietnam to Germany, the first question most customers ask is:
“How much does it cost per kilogram to ship to Germany?”
It’s a perfectly reasonable question. However, focusing solely on the cost per kilogram often causes people to overlook the fact that the total logistics cost is determined by many other factors.
In reality, two shipments with the same weight do not necessarily have the same shipping cost. A company that ships 300 kg of cargo every month is not always better at optimizing shipping expenses than an individual sending just 20 kg. The real difference lies not in the freight rate itself, but in how the shipment is prepared, the transportation method selected, and the understanding of international freight pricing rules.
Based on Kango’s years of experience handling shipments to Germany, we have found that most unexpected shipping costs are not caused by higher freight rates, but by a series of seemingly minor decisions made before the cargo is dispatched.
Below are the most common mistakes.
1. Asking “How much is it per kilogram?” Without Understanding How Freight Is Calculated
This is the most common mistake among first-time international shippers.
Many people assume that shipping charges are based solely on the actual weight of the shipment. However, in international air freight, airlines use the concept of Chargeable Weight.
The chargeable weight is determined by comparing:
- Gross Weight
- Volumetric Weight
The airline will charge based on whichever is greater.
Example:
Shipment A
- Gross Weight: 18 kg
- Dimensions: 40 × 40 × 40 cm
Since the volumetric weight is close to the actual weight, the shipping cost remains relatively reasonable.
Shipment B
- Gross Weight: 18 kg
- Dimensions: 90 × 60 × 60 cm
Although the shipment weighs only 18 kg, it occupies significantly more cargo space inside the aircraft. As a result, its chargeable weight may exceed 60 kg, causing the shipping cost to increase several times beyond the customer’s expectation.
This is why many customers are surprised and ask:
“My shipment weighs only around 18 kilograms. Why is the quotation so expensive?”
In most cases, the answer isn’t the weight—it’s the package volume.
A Logistics Professional’s Perspective
For products such as clothing, bedding, stuffed toys, or dried food, vacuum sealing or redesigning the packaging can significantly reduce the volumetric weight.
Sometimes, reducing just a few centimeters from each side of the carton can save a considerable amount on international air freight, especially for shipments to Europe.
This is why experienced logistics providers always measure the package dimensions before providing a quotation, rather than simply asking:
“How many kilograms does your shipment weigh?”
2. Choosing a Shipping Method Based on Habit Instead of Total Logistics Cost
Many people believe that:
- Urgent shipments should go by air.
- Heavy cargo should go by sea.
While this sounds reasonable, choosing the right shipping method should be based on the Total Logistics Cost, not just the freight rate.
For example, imagine a manufacturer exporting electronic components to Germany with a monthly shipment of 250 kg.
If the shipment must arrive on time to keep the customer’s production line running, air freight may cost more, but it can prevent production delays, contract penalties, and supply chain disruptions.
On the other hand, if the shipment consists of furniture or household goods with no urgent delivery deadline, sea freight is often the more economical option because it offers lower transportation costs and is better suited for large-volume cargo.
The key question is not:
“Is air freight cheaper than sea freight?”
Instead, it should be:
“Which shipping solution minimizes my total logistics cost?”
The total logistics cost includes:
- Transportation charges
- Delivery lead time
- Warehousing costs
- Inventory holding costs
- Risks associated with delayed deliveries
- The ability to meet business or production schedules
This is the same approach used by importers and exporters when planning their logistics strategy. Rather than comparing freight rates on a per-kilogram basis, they evaluate the overall cost and operational impact of the entire supply chain.
3. Optimizing Freight Rates While Overlooking the Total Logistics Cost
This is a common mistake made by both individual customers and small to medium-sized businesses.
When comparing multiple quotations, the first instinct is often to choose the provider offering the lowest shipping rate. However, in international logistics, a lower freight rate does not necessarily mean a lower overall shipping cost.
Consider the following two options:
Option A
- Freight rate is 8% lower
- Delivery takes 10 days longer
- No fixed flight schedule
- Shipment requires multiple transit points
Option B
- Slightly higher freight rate
- Stable and predictable flight schedule
- Better control over delivery time
- Real-time shipment tracking available
If you’re sending gifts to family or friends, a few extra days may not make much difference.
However, for commercial shipments, a 10-day delay can result in:
- Your business partner running out of stock
- Lost sales opportunities
- Customer refunds
- Delays in fulfilling contractual obligations
In these situations, saving a few percent on freight charges becomes insignificant compared to the additional costs caused by late delivery.
This is why supply chain professionals focus on Total Logistics Cost (TLC) rather than transportation cost alone.
The total logistics cost includes not only freight charges but also inventory carrying costs, warehousing, lead time, customer service, and the financial impact of supply chain disruptions.
That is also why experienced exporters evaluate logistics providers based on service reliability and operational stability, not simply on who offers the cheapest quotation.
4. Failing to Take Advantage of Shipment Consolidation
One of the most effective cost-saving strategies in international shipping—and one that many individual customers are unaware of—is shipment consolidation.
Many people have the habit of:
- Shipping items as soon as they are ready
- Sending one small package every week
- Having each family member ship their own parcel separately
While this approach offers flexibility, it is often the least cost-effective option.
For example:
A family in Ho Chi Minh City sends parcels to relatives in Berlin:
- Week 1: 6 kg
- Week 2: 8 kg
- Week 3: 7 kg
The total shipment weighs 21 kg, but it is divided into three separate consignments.
If these parcels were consolidated into a single shipment and dispatched together, the shipping cost per kilogram would generally be lower. In addition, the shipment would only require one booking, one customs declaration, and one handling process, reducing both operational costs and administrative work.
For businesses, shipment consolidation is even more valuable.
Planning weekly or monthly consolidated shipments allows companies to optimize transportation schedules, improve container or cargo space utilization, and significantly reduce overall logistics expenses.
From a supply chain perspective, consolidation is not simply about combining packages—it is a strategic approach to improving transportation efficiency while lowering the total cost of international shipping.
5. Overlooking Volumetric Weight During the Packing Process
Many people believe that packaging serves only one purpose: protecting the goods during transportation.
In reality, the way a shipment is packed has a direct impact on the freight cost, especially for international air freight.
Airlines are not simply selling weight capacity—they are selling cargo space inside the aircraft.
This means that a lightweight but bulky shipment can occupy the same amount of space as a much heavier one.
That is why experienced logistics providers always measure a package’s dimensions before calculating the shipping cost.
For example:
Imagine shipping the same set of bedding.
Packing Method 1
- Keep the bedding in its original packaging.
- Place it inside an oversized cardboard carton.
Packing Method 2
- Vacuum-seal the bedding.
- Pack it in a carton that closely matches the product dimensions.
Although the actual weight remains almost identical, the chargeable weight can be significantly reduced because the shipment occupies much less cargo space.
This is one of the easiest ways to lower international air freight costs, yet many customers are unaware of it.
For businesses that ship regularly, standardizing packaging specifications can generate substantial long-term savings by reducing transportation costs for every shipment.
6. Providing Incomplete or Inaccurate Cargo Declarations
In international shipping, cargo declarations are not merely a requirement of the logistics provider—they play a critical role in the customs clearance process.
Some customers assume that providing a simple or generic description will speed up the shipping process.
In reality, if the declared information does not accurately reflect the nature of the goods, customs authorities may request additional documentation or conduct further inspections before allowing the shipment to proceed.
Common examples include:
- Declaring the shipment simply as “food” instead of specifying the actual product.
- Failing to list the ingredients or composition of cosmetic products.
- Providing an incomplete description of electronic components or their intended use.
These mistakes may not immediately result in additional charges, but they often lead to longer processing times, customs delays, and disruptions to the planned delivery schedule.
For this reason, experienced logistics providers review shipment information with customers before dispatching the cargo, rather than simply accepting the shipment and forwarding it without verification.
7. Don’t Just Ask, “How Much Does It Cost?” Ask, “What Is the Most Efficient Shipping Solution?”
After years of experience in international logistics, we’ve noticed an interesting pattern.
First-time customers usually ask about freight rates.
Experienced shippers ask about shipping strategies.
These are two completely different approaches.
For example, consider a shipment from Ho Chi Minh City to Frankfurt containing clothing, dried food products, and household goods.
- If fast delivery is the priority, air freight may be the most suitable option.
- If delivery time is flexible and cost optimization is the primary objective, sea freight is often the better choice.
- If part of the shipment is time-sensitive while the rest is not, splitting the cargo into two separate transportation methods may actually be more cost-effective than sending everything together.
There is no single shipping solution that is best for every shipment.
The right choice depends on your priorities—whether that is speed, budget, cargo type, inventory planning, or business requirements.
That is why professional logistics providers begin by understanding a customer’s shipping objectives before preparing a quotation.
Instead of simply offering the lowest freight rate, they focus on designing the most efficient transportation solution—one that balances cost, transit time, reliability, and overall supply chain performance
