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While today international shipping has gotten substantially easier, it does not come without its fair share of surprises. Some of these surprises include hidden costs in the form of fuel surcharges, DDP handling fees, and remote areas charges, to name a few that may sneak upon you in addition to existing shipping rates.
You can now get started with your shipping journey in just 3 minutes with Easyship’s Shipping Rate Calculator. You can also add your T&Ds and Insurance at the final checkout to avoid any hidden surprises.
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To shield yourself against these extra costs, we have created this guide and help you better understand the origin of these fees so you’ll know what to expect for future international shipments.
First, let’s talk about the differences between express couriers (UPS, Aramex, SF Express, etc.) and postal couriers (such as HK Post, SingPost, and USPS.) With postal couriers, the pricing is simple – you will pay mostly for the shipping costs.
However, the speed of their services is slow, and the service quality is low.
On the other end, express couriers provide fast and reliable services, but the pricing is much more complex and will depend on various factors.
Let’s break down the express courier costs into three main categories:
These are related to the details of the shipment, such as the pickup location, the delivery destination, and the delivery hours.
With express couriers, the main additional charge that you will face is the fuel surcharge. Calculated as a percentage of the shipping costs, this varies weekly or monthly depending on the country. Be mindful of their fluctuation as it can significantly impact your bills!
If you read the fine print, you may be surprised that depending on the pickup location, you can face a surcharge. This is usually called a “remote area surcharge” or “extended area surcharge”, meaning these locations are far from the usual collection path of our dear couriers. If pickup is in a residential building, an additional surcharge may also apply for certain couriers!
Optional value-added services can be chosen as well to take care of your shipments, such as additional insurance (in case of lost or damaged shipment), delivery out of regular working hours (such as Sundays, public holidays or within a short time frame.) However, as these will be chosen by you, it’s unlikely you’d find this surprising.
Billing errors can be a silent drain on your shipping budget. Mistakes in invoicing, such as incorrect weight, dimensions, or service level, can result in overcharges that go unnoticed unless you regularly audit your shipping invoices. Identifying and disputing these errors is key to ensuring fair pricing and keeping shipping expenses under control. This error usually happens when you have multiple packages getting delivered , to avoid such errors you can use a multi carrier shipping software that can help you with monitoring each shipment from start till the very end.
Finally, mistakes happen, and unfortunately, you can be charged for this. Some of these fees include “address correction fee”, “delivery reattempt” or even “return fees”.
| Fee Name | Description | Who Charges It |
|---|---|---|
| Fuel Surcharge | Percentage fee based on current fuel prices | Express couriers (DHL, UPS, FedEx) |
| Remote Area Surcharge | Charged for pickups/deliveries in remote or hard-to-reach areas | Express couriers |
| Residential Surcharge | Charged for deliveries to residential (non-commercial) addresses | UPS, FedEx |
| Holiday/Out-of-Hours Delivery Fee | Fee for delivery outside standard business hours or on holidays | Express couriers |
This charge has to do with the items you want to ship, their container, the weight, and the dimensions. Couriers prefer standard and easy-to-handle parcels; if your parcel doesn’t fit their criteria, you can be hit with additional charges!
Shipping dangerous goods has a price. You usually will be charged an additional fee, mostly as a percentage of the shipping costs or the value of the goods (sometimes even both!)
If your parcel exceeds a courier’s standard dimensions or weight, surcharges can apply. For example, if the length of your parcel exceeds 2 meters, or if the dead weight is over 80kg, you can be charged for having an oversized item or a heavy parcel.
The material and the shape of the containers can lead to additional fees. If your container is made of wood or metal, or if it’s cylindrical, you can expect extra fees to be charged.
If the shipper or receiver has mandated an adult’s signature for delivery confirmation, then this is likely to incur extra charges. USPS has a separate category called USPS Signature for this very purpose. This might be another accessorial hidden cost that might pop up later if not considered early.
| Fee Name | Description | Who Charges It |
|---|---|---|
| Oversize/Overweight Surcharge | Extra charge for parcels exceeding courier size or weight limits | Most couriers |
| Non-Standard Packaging Fee | Charges for non-standard containers (e.g., wooden, metal, or cylindrical) | Most couriers |
| Dangerous Goods Fee | Handling fee for shipping hazardous materials | Couriers with DG services |
| Signature Requirement Fee | Extra charge for requiring delivery confirmation signature | USPS, FedEx, UPS |
As you may know, shipping internationally means the sender or the recipient will have to pay for taxes and duties under certain conditions and the amount will vary depending on the destination.
For DDU shipments (Delivery Duty Unpaid) the recipient is responsible for paying the taxes and the duties. In this case, you won’t see any additional charges from the courier. However, you need to remain alert, because as the sender, you will be responsible for your shipment in case the recipient is not willing to pay those taxes or doesn’t want the shipment anymore. In that case, either you would have to pay for the recipient, or worst-case scenario, ask for your shipment to be returned or abandoned. In both cases, someone will have to pay something.
For DDP shipments (Deliver Duty Paid), you (the sender) will pay for the taxes and the duties. However, the pricing for this is more complex! The couriers will charge you an additional fee for paying the T&D on your behalf when the shipment arrives at the destination country.
In addition to the fixed “DDP handling fee” for taking care of those taxes & duties, you can also expect a “disbursement fee”, calculated as a percentage of the amount of T&D they will advance on your behalf.
These charges can appear subsequently and should not be underestimated. Despite the complex pricing, DDP shipments do bring you the peace of mind that your shipment will not be returned or abandoned simply because the recipient refuses to pay for the T&D.
One mistake you should avoid entirely is under-declaring the items of your shipments on the commercial invoice. If the customs clearance agencies suspect that the declared value is below market price, they may ask you for a new invoice, and many additional costs can follow.
If they don’t receive the revised commercial invoice on time, the parcel can remain in customs, triggering warehouse storage fees. Additionally, the courier can charge you a fee for undervaluing your goods. So please be careful in assessing and declaring properly the value of your shipment! Here are some other tips on what to do if your shipment is stuck in customs.
| Fee Name | Description | Who Charges It |
|---|---|---|
| DDU (Delivery Duty Unpaid) | Taxes/duties paid by the recipient; risk of non-payment may fall on sender | Applicable in international shipments |
| DDP Handling Fee | Fee for processing prepaid duties and taxes on behalf of the sender | Express couriers |
| Disbursement Fee | Fee for advancing duties/taxes on behalf of the shipper | Most couriers |
| Customs Storage Fee | Charged when packages are held in customs due to documentation delays | All couriers |
| Undervaluation Penalty | Fines or extra fees for misdeclaring shipment value | Customs/couriers |
Hidden shipping costs can have a significant impact on both businesses and online shoppers, often leading to unexpected expenses that eat into profit margins and reduce customer satisfaction. When hidden shipping costs go unnoticed, they can accumulate over time, resulting in higher shipping invoices and strained budgets.
For businesses, these hidden costs can make it difficult to accurately price products, forecast expenses, and maintain healthy profit margins.
For online shoppers, unexpected fees at checkout or after delivery can lead to frustration and a loss of trust in the retailer. In both cases, customer satisfaction is at risk, and the overall shopping experience can suffer.
To mitigate the impact of hidden shipping costs, it’s essential to take a proactive approach to managing shipping expenses. This includes conducting regular audits of shipping invoices, verifying that billed amounts match agreed-upon shipping rates, and comparing costs across different carriers.
Leveraging technology, such as Easyship’s shipping data analytics, can help identify patterns of overcharges, billing errors, or inefficiencies in shipping processes, allowing businesses to make informed decisions and achieve cost savings.
By staying vigilant and using data-driven insights, businesses and online shoppers can save time, reduce costs, and ensure that shipping expenses are transparent and fair. Ultimately, proactive management of hidden shipping costs leads to improved customer satisfaction and a stronger bottom line.
Now that you are aware of the hidden fees and additional charges that can occur while shipping internationally, we hope you can learn to budget for these accordingly (or avoid some of them entirely.)
Through Easyship, we offer shipping rates, final tax and duties charges, and even insurance charges so that you get the complete picture of what you will be paying for, minus the surprises.
We list all potential surcharges in our shipping quotes so you will never be caught off guard again.
Check out Easyship’s Shipping Rate Calculator and Tax Duties Calculator to get a complete lowdown of the process
A hidden shipping fee is an unexpected charge that appears after you've booked a shipment. These can include fuel surcharges, remote area fees, customs handling charges, or penalties for incorrect addresses. They’re often not included in the initial shipping quote and can surprise you on your final invoice.
To ship internationally, you’ll typically need:
Providing accurate information helps avoid delays and extra fees.
While some international fees are unavoidable, you can reduce or avoid others by:
International shipping fees are the total costs involved in sending a package across borders. They usually include:
These fees vary by courier, destination, and the type of goods being shipped.
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