COVID-19 Updates: Operations continue as we are monitoring the situation closely to ensure the health and safety of our customers and our personnel.   > Stay Informed.

Why Is Delivery So Expensive?
Oct 2023

Why Is Delivery So Expensive?

Posted By   |  0 Comment

Whether you have ordered products online from businesses in other parts of the country or from different countries around the world, or you work in eCommerce, and you need to have products delivered from other places, you will have noticed that the delivery of these items is often quite expensive.

The price of delivering things from one location to another can be especially high when you are delivering large items, fragile products, or temperature-sensitive goods. Still, what affects the cost of this type of transportation, and how are delivery costs broken down?

Shipping costs typically cover labour, materials, and all of the different supply chain activities that must take place for something to be effectively transported from one place to another.

In addition, delivery costs must account for the taxes charged by the country where the product is being shipped from and those charged by the place where it is being shipped to, as well as other documentation fees. Of course, a parcel’s dimensions, weight, value, and shipping destination are also factors that tend to affect the final price of delivery.

Why have delivery costs significantly gone up recently?

If it has been a while since you needed to deliver anything, you may be shocked by how much prices have increased across the board in this industry. Rates are currently at an all-time high. The main issue that has caused this is the COVID-19 pandemic, especially for international shipping.

There are a number of factors that arose during the pandemic period that negatively impacted various logistics in the shipping and delivery industry, which have ultimately resulted in prices skyrocketing.

From 2019 to 2020, and during the pandemic, the global eCommerce market grew by a staggering 44%. As this growth took place at a much faster rate than expected, and during a time when fewer resources than usual were available, it put extreme pressure on the businesses delivering various products.

Since the pandemic also brought about many restrictions that shipping companies normally would not need to follow, this also led to further delays in the transportation of many shipping containers around the world.

Another major factor that has led to delivery prices increasing is the rising costs of fuel and fuel surcharges. Fuel surcharges are meant to account for the unpredictable nature of fuel costs. Since gas prices have risen since Russia’s invasion of Ukraine, these surcharges have also considerably risen.

The combination of issues taking place abroad, where we typically get our crude oil from, and the fact that multiple refineries in North America have been shutting down has naturally led to amplified fuel pricing as demand has begun to far outweigh supply.

Is delivery still worth it despite rising costs?

As the delivery of shipping containers has grown increasingly expensive in recent years, you may be wondering whether or not it is still worth investing in such an approach. Although it is true that costs are an important consideration, there are still many advantages of having a shipping container delivered to you. These benefits make the high delivery costs worth it at the end of the day.

For instance, with your own shipping container, you can benefit from the freedom that comes from having access to a completely versatile storage space. Due to the significant size of shipping containers, you can store all kinds of things (both big and small), and you can do so without having to sacrifice their organization or risk their safety.

With the abundant amount of space that shipping containers in Toronto provide, you never have to worry about items not fighting in, and you can arrange them however you please to allow for easier access.

When you use shipping containers as storage units, you also have better flexibility than you normally would with most other storage options because you can access your belongings any time you want 24/7.

This convenience will save you the headache of constantly travelling to a specific storage facility just to get your things. It will also allow you to modify certain features according to your needs, such as the type and amount of security you would like to implement.

How Sigma Container Corporation Can Help With the Delivery of Shipping Containers

If you are interested in a shipping container in Toronto as a storage unit for the safekeeping of your things, Sigma Container Corporation has a wide selection of opinions to choose from.

We carry a 20’ standard, 40’ standard, or 40’ high cube shipping container for your convenience, which we will deliver to you within one to five business days so that you can start storing your things quickly. If you are unsure of the container size that best suits your needs, feel free to speak to one of our experts for guidance.

We provide reliable delivery of our shipping containers to our customers using tilt-and-load trucks, which make it possible for us to place containers in the exact places you require them.

All our containers are checked thoroughly before being delivered to ensure they are in good shape, so you can rest assured that you will receive a sturdy container on delivery day. However, if there are any problems with the container’s seals that you experience within the first year after drop-off, you can call us about them, and they will likely be covered under our warranty.

For more information about our shipping container options in Toronto or to learn more about the delivery process we use to get our shipping containers to you, call Sigma Container Corporation at 855-340-3342 or contact us here.