Many B2B companies and e-commerce sellers fail to grasp Destination Delivery Charge (DDC) a common charge levied in international logistics. It is one of the fees that contribute to the overall shipping costs for your furniture consignment and may impact your shipping budget more than you think.
As implied in the term, DDC charges refer to fees that companies have to pay when delivering goods from the point of arrival, such as a port or distribution centre, to their final destination. Familiarising yourself with these charges can help you decide the most effective logistics strategy for moving goods without exceeding your total expenditure.
What is Destination Delivery Charge or DDC ?
The Destination Delivery Charge (DDC) refers to the fees incurred in transporting international freight from the terminal or warehouse to wherever it is to be delivered. The charge is usually imposed by carriers or freight forwarding companies so as to make up for the operational costs and last mile delivery, including transportation and getting goods cleared through customs. DDC tends to fluctuate over time and varies from region to region.
Unpacking the Costs Underlying DDC
It is a sum of various charges, such as tariffs, fuel surcharges, and customs fees, that collectively ensure that the product reaches the consignee most efficiently. These costs add up in the total shipping costs incurred in a single shipping journey.
Handling Fees
These fees cover expenses involved in unloading incoming goods, sorting them out, and packing them for final delivery at the destination port or distribution centre.
Delivery Fees
These fees come into effect once goods leave the port or distribution to head towards the address of the consignee. How much you are charged in delivery is influenced by how far the port is from the final destination and the mode of transport employed for this purpose.
Customs Clearance Fees
All shipments have to pass through a customs procedure right before they can move on from the port or distribution centre. As part of customs, you are required to submit relevant documents and pay any customs duties and taxes, all of which can affect your overall costs and whether your order is delivered on time. Errors in documentation, such as missing or incorrect paperwork, can lead to significant import delays. Learn more about the most common documentation errors that cause import delays and how to avoid them.
Terminal Handling Charges – THC
These charges relate to the costs involved in unloading the incoming cargo from the ship to the terminal yard and then stacking and reloading it on an outbound vehicle. The costs cover the use of port facilities and equipment for handling cargo.
Security Surcharge
These fees aim to cover costs for screening and inspecting consignments to ensure they comply with safety regulations.
Storage Fees
Under certain situations, the consignment has to be stored at he port or distribution centre before delivery. This may happen when there is a scheduling conflict with the consignee or there is a customs delay due to which it cannot be moved right away.
What Factors Influence DDC Charges
Several factors go on to determine the exact amount you have to pay as DCC charges;
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Final Destination
Generally, the charges are higher if the port or distribution centre is far from the point of delivery
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Size and Weight of Cargo
The larger and heavier the shipment, the higher the handling and transportation costs.
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Goods category
Additional fees are charged if the cargo contains fragile, perishable, or high-risk items, as they are handled with greater precision.
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Infrastructure at the port
Ports offering advanced facilities come at a higher fee structure than a standard port with conventional services.
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Local Regulations
The country to which your furniture cargo is being delivered may impose specific taxes and duties or compliance fees, which can give rise to a higher DDC than expected.
Understanding What Affects DDC in Furniture Logistics
Given the nature of furniture, DDC is a major factor in the overall costs pertaining to furniture delivery. The following aspects are worth considering in international logistics.
- Furniture items typically have a larger weight and size, which increases the handling and transportation fees.
- Many furniture are intricately designed and have to handled with extra care to prevent damage for which additional labor is required.
- Furniture delivery may require additional equipment or services, especially if its routes cover residential areas, adding to the delivery fees.
Conclusion
Knowledge of how DDC charges work can help furniture importers manage DDC with ease and ultimately control their shipping expenses. DDC plays a key role in ensuring your furniture is delivered to your final customers on time and without damage. Working with the right logistics provider can maintain the quality of your shipment while lowering risk. Contact us now to optimise your logistics operations and ensure the efficient and cost-effective delivery of your goods.
About the Author: Adam
