If you’re shipping containers to Europe from the US, there are a number of factors that affect the cost of freight – from the type of container used, to the shipping lane and distance, to whether you’re shipping a full container load (FCL) or less-than-container load (LCL). So, if you’re looking for ways to save on the logistics of Trans-Atlantic container shipping, read on.

Shipping Benefits of Being a US Exporter vs. Importer

The good news is, for export shipping from the US to Europe, freight rates are always going to be lower than for importing. That’s because there’s always more trade coming inbound than going outbound, and supply and demand is the primary driver of ocean freight rates. 

This is reflected in the trade imbalance between the US and the European Union. As of 2023, the US exported goods and services to the EU valued at approximately $592 billion, while importing about $723 billion. 

For this same reason, freight rates to Europe aren’t affected by the huge spikes in seasonal demand that affect US imports from Q3 into Q4 (holiday season) and from Q1 into Q2 (bulking up ahead of the Chinese New Year production shutdown). 

Cost-Influencing Variables in Shipping from US to Europe

When shipping to Europe from the US, you can opt to go with a 40-foot container or a 20-foot container, depending on how much freight you have. Unless you are shipping dense, heavy cargo like metal, construction tile or water bottles, most shippers will max out the cube long before hitting the container’s max weight limit. A 20-foot container has a capacity of 1,172 cubic feet, while it’s 2,390 cubic feet for a 40-foot container and 2,694 cubic feet for a 40-foot high cube container.

A (very) rough rule of thumb: if your cargo takes up more than half of a 20’ container, pricing will tend to favor FCL vs. LCL. 

While a 40–foot container is roughly twice the capacity of a 20-foot unit, that doesn’t mean it’s going to cost twice as much, and a number of factors go into the determination.

Sometimes, a 40-foot container can actually be cheaper. Shortages of larger containers at certain ports or locations can drive the ocean line to offer lower 40-foot rates as an incentive to recapture equipment faster. If your cargo is light, you can theoretically ship twice the volume for the same price or less. This can be particularly valuable for consignees or receivers in Europe under Ex Works (EXW) terms of sale, where they’re responsible for transportation from origin to destination.

Information on container supply-and-demand-driven pricing is not available to shippers, but an experienced freight forwarder like I.C.E. Transport has close relationships with all major Transatlantic ocean carriers and will have a good read on freight rates.  

LCL can be economical, as you’re just paying for the space used, and it provides flexibility for smaller shippers. However, as it involves consolidation and deconsolidation of loads, this leads to longer transit times and additional handling charges. There’s also a higher risk of damage in LCL, with cargo packed together.

If you’re going FCL with either a 20-foot or 40-foot container, it makes economic sense to pack it as full as possible. A steamship line charges the same rate to ship a container that’s half full as one that’s stuffed to capacity. The more you fit in the box, the less you pay per unit or per pound.

Whenever possible, consolidate and improve container loading. If the product you plan to put on the water this week fills only half of a container, and you’ll be shipping a similar order next week, it makes sense to wait a few days and ship them together. This way, you can reduce your costs by moving one container instead of two, if that schedule still meets your customer’s requirements. 

Ex Works vs. Free On Board (FOB)

Choosing between port-to-port, port-to-door and door-to-door shipping depends on your operational preferences and your budget when shipping to Europe from the US.

In port-to-port or port-to-door shipping under Free On Board (FOB) Incoterms, a US-based manufacturer or seller handles transportation to port, origin charges, and loading. The consignee or receiver is responsible for the remaining logistics from port of origin to final destination. This involves hiring a freight forwarder, a carrier from port (truck, rail or both), and customs clearance. Such a fragmented process can be daunting for the average EU importer, requiring greater coordination and higher overall costs, as each intermediary takes their profit.

On the other hand, door-to-door shipping under EXW simplifies the process. A freight forwarder coordinates transportation, customs clearance, and delivery, providing a streamlined solution. This helps consignees avoid the complexities of dealing with multiple entities, reducing administrative burden and costs. Profit is added by just one provider, making door-to-door often more economical than managing multiple logistics parties.

Moreover, door-to-door handled by one company offers better visibility and control over the shipment, and greater flexibility for consignees. While port-to-port may seem cost effective upfront, door-to-door logistics often emerge as the smarter choice for seamless and efficient shipping to Europe from the US. It helps when your single-source forwarding partner maintains offices at both origin and destination. 

Using An Experienced Freight Forwarder: Savings, Simplicity, Efficiency

Using an experienced freight forwarder like I.C.E. Transport offers shippers significant benefits. Backed up by more than 35 years of efficiently managing Trans-Atlantic freight, we help you balance cost and service level through a deep understanding of the factors affecting both.

As a Non-Vessel Operating Common Carrier (NVOCC), I.C.E books cargo directly with ocean carriers and consolidates shipments. We offer volume discounts and competitive rates, including seamless door-to-door service between the US and Europe. Our expertise in European lanes ensures smooth navigation through customs, avoiding costly delays.

By handling your complex logistics, including coordination with our many trucking and rail partners, I.C.E. saves you time, reduces risks and provides peace of mind. With thousands of shipments under our belt, we’re your ideal partner to streamline shipping and lower costs​ for EU shipping. To learn more, let’s start a conversation.