Why Port Choice Matters More for Fresh Produce Than General Cargo
The cheapest UK port isn't always the cheapest option for fresh produce. Here's what importers should consider beyond ocean freight.
When you're comparing ocean freight rates, it's easy to focus on the port with the lowest number.
But the cheapest port-to-port rate doesn't necessarily produce the cheapest shipment.
For fresh produce, the UK port is one part of a much bigger calculation.
Where the cargo needs to go next, which shipping lines serve the route, the cost of the inland delivery and how easily the container can be collected all matter.
Most produce comes through London Gateway
For the fresh produce we handle, London Gateway is the main UK gateway.
But that doesn't mean it's automatically the right answer for every shipment.
The right port depends on the origin service, the destination and the overall cost of moving the container from the ship to the warehouse.
If a shipping line doesn't offer a practical service into a particular port, it doesn't matter that the port might be geographically closer to the customer's warehouse.
You can't choose a port that doesn't work for the ocean leg.
Geography is only part of the equation
It sounds logical to choose the port closest to the warehouse.
But that's only one consideration.
Suppose the customer's warehouse is closer to Liverpool than London Gateway.
If the available shipping service doesn't offer a suitable route into Liverpool, the calculation changes.
The importer might be better off using a different port with a stronger ocean service and accepting a longer inland journey.
That's why we look at the whole route rather than simply measuring the distance from port to warehouse.
Look beyond the ocean freight rate
There are costs after the vessel arrives.
The inland delivery is one of them, and fuel can have a significant effect on that cost, particularly when fuel markets are volatile.
There are also the costs associated with keeping a container at the port beyond its free time.
If congestion delays collection and the available free plug-in or demurrage days are exceeded, the economics of the original freight rate can change very quickly.
The cheapest ocean freight isn't necessarily the cheapest overall route.
Port costs can change too
Port pricing isn't static.
For example, additional charges related to higher-emission vehicles at DP World ports can have an effect on the cost of the inland move.
That's another reason we don't think port selection should be based on one freight rate taken in isolation.
The numbers need to be considered together.
What should an importer compare?
Rather than asking only: Which port has the lowest ocean freight rate?
We'd suggest looking at:
Which shipping lines offer the right service?
How does the port fit with the warehouse location?
What will the inland delivery cost?
What are the likely fuel costs?
How straightforward is collection?
How much free time is available?
What happens if collection is delayed?
The answer may still be the cheapest ocean-freight option.
But it may not be.
There isn't one UK port that is automatically best for fresh produce.
The right answer depends on the origin, carrier, destination and total cost of getting the cargo where it needs to go.
That's why we prefer to look at the whole route, rather than quote an ocean freight number in isolation.
For a fresh-produce importer, the question isn't just “How much does it cost to get the container to the UK?”
It's “What will it cost to get the produce to my warehouse?”