How to Calculate Shipping Costs from Singapore to Malaysia

Most businesses and individuals need to know what may influence shipping costs when shipping between Singapore and Malaysia. Having cross-border freight experience for a long time, Evermarch Logistics made the process as smooth as possible. Below is a guide on all the elements that affect the shipping costs that arise for cargo to Malaysia and the process of how to calculate an approximate shipping rate.

Major Factors Which Influence Shipping Costs

There are several components that determine the shipping cost from Singapore to Malaysia. Knowing each one of them will subsequently allow you to estimate how much the total cost would be and make informed decisions.

1. Package Size and Weight

Size and weight are some of the major cost determinants for shipping. Shipping companies actually either use the actual weight or volumetric weight, which is higher.

Actual Weight: It is the actual weight of the parcel measured on a scale.

Volumetric Weight: This is the volumetric weight based on the dimensions of the parcel (length, width, and height). In volumetric weight, it calculates the volume that a package occupies.

Shipping companies typically apply the higher of the two weights as the basis for charges. So, suppose a parcel has an actual weight of 5 kg but volumetric weight is 8 kg-you'll be charged by that shipping company for 8 kg.

2. Type of Shipment (Express vs. Standard)

Malaysia cargo delivery charges also vary with transport mode and service levels. Typically, a faster shipment tends to be more expensive, but the slower ones are usually cheaper and deliver goods over a longer span of time. Companies like Evermarch Logistics offer a variety of service levels for different budgets and time requirements.

Express Shipping: Good for urgent situations, express shipment tends to arrive within 1 - 2 business days but at a premium.

Standard Shipping: This is slower, usually 3 - 7 business days, and cheaper in cost.

3. Shipping Distance

Singapore and Malaysia are close-by neighbours, but the shipping destination in Malaysia may still influence the shipping fee. Generally, shipping to cities like Kuala Lumpur will be cheaper compared to being transported further away into remote areas with higher transportation and fuel costs.

4. Customs and Duties

Customs duty and taxes: This is another very important factor while shipping overseas. The customs duty or GST varies with the value of goods being shipped and their categorizations under the Harmonized System code.

Declaration of Values: Precisely declare the values of the products that you are shipping.

You know the right customs duties that have to be levied for the kind of products that are shipped.

For instance, in Malaysia, the minimum amount de minimis (de minimis is that amount that, when applied, results in no duty or tax) is at MYR 500. On articles having a value exceeding this amount, duties or taxes will be charged.

5. Ancillary Services

The others include insurance, packaging, and dealing with fragile or perishable items. These are added to the total shipping cost and are optional though advisable when shipping high-value or delicate cargo.

Insurance: Additional assurance will be given to users if their shipment gets lost or is damaged. Insurance fees are charged at a percentage based on the declared value of the goods.

6. Fuel Surcharge

Many logistics providers add a fuel surcharge in order to recover an increase in the cost of fuel that impacts the cost of transportation. The surcharge is typically a percentage of the total shipping cost and is always adjusted automatically according to how fuel prices are fluctuating.

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Example of Calculating Shipping Costs

To better illustrate the calculation of shipping costs from Singapore to Malaysia, let’s consider an example. Assume you are shipping a parcel that weighs 4 kg and has the following dimensions: 50 cm (length) × 30 cm (width) × 40 cm (height).

1. Calculate Actual Weight:
   The actual weight of the parcel is 4 kg.
2. Calculate Volumetric Weight: Using the formula for volumetric weight.
   Volumetric Weight = 50cm × 30cm × 40 cm = 60,000 cubic centimetres.
   
   The volumetric weight factor is typically 5,000 cm³ per kg.
   
   So, weight = 60,000 cm³ / 5,000 cm³/kg = 12 kg.
   
   Since the volumetric weight (12 kg) is greater than the actual weight (4 kg), the shipping cost will be calculated based on 12 kg.
3. Choose Shipping Service:
   If you choose express shipping, let’s assume the rate is SGD 6 per kg. The total cost would be:
   Total Shipping Cost = 12kg × 6SGD/kg = 72SGD.
   For standard shipping, with a rate of SGD 4 per kg, the cost would be: Total Shipping Cost = 12kg × 4SGD/kg= 48SGD.
4. Add Additional Costs:
   If you opt for additional services like insurance (let’s say 2% of the declared value of SGD 300), the cost of insurance would be:
   Insurance Cost = 300 × 0.02 = 6SGD
   Adding this to the express shipping option, your total cost would be:
   72SGD + 6SGD = 78SGD

Final Considerations

When calculating shipping costs, always consider the following:

• Comparison of shipping services: Get quotes from different logistics providers to find the best rates for your specific needs.
• Seasonal price variations: Shipping costs may fluctuate during peak seasons like holidays, where demand for logistics services increases.
• Customs documentation: Ensure you have accurate and complete customs documentation to avoid delays or extra charges.

For businesses and individuals frequently shipping and delivery to Malaysia, Evermarch Logistics offers expertise and tailored services to optimise your shipping processes. Whether you're dealing with high-volume freight or smaller parcels, understanding these elements will help you calculate costs effectively and ensure a smooth shipping experience.

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