The true logistical cost of exporting a container of avocados

When an exporter receives a quote to ship a container of avocados, they usually look at the freight cost first. And that makes sense; it's one of the most significant costs in the operation.

But freight is not the total logistics cost.

From the moment the container is requested until the cargo reaches its destination, there are many other variables that can end up increasing the cost of an operation that, initially, seemed very competitive.

How much does it really cost to export a container?

Let's think about something very simple.

One shipping company offers a freight rate of USD 5,500 and another of USD 6,300. The first one seems to be the best alternative.

But before deciding, we should ask ourselves: What am I getting for that $800 difference?

You have to look at transit time, number of transshipments, service frequency, reefer container availability, AC technology and operational reliability.

Because a lower rate may cease to be convenient if delays, rescheduling, storage, additional movements, or other costs arise later.

The cost starts before the port

Logistics begins long before the container arrives at the terminal.

We need to coordinate the reefer equipment, its removal, transport to the packing facility, loading, documentation, and entry into the port.

Coordination is key here.

Exporter, packing company, carrier, terminal, and shipping company are all part of the same chain. When one of them fails, the problem can end up affecting everyone, especially the producer or exporter…

Time also has a cost

In avocado exports, time is especially important.

A container lost by a ship may be rescheduled and have its arrival date changed. This can generate additional costs and also force the exporter and importer to reorganize their operations.

That's why it's not enough to just ask how much the shipping costs. You also have to ask how reliable the service is.

And what happens after we set sail?

The fact that the ship has set sail does not mean that the logistical management is over.

During transit, changes may occur to the schedule or the estimated arrival date. Therefore, it is important to have reliable information and track the container.

It is not enough to know that the ship left.

We need to know what's happening with our container and react quickly when an exception occurs.

So, How to choose?

Before deciding, in addition to the price, it's worth asking yourself:

What does the freight actually include?

What is the transit time?

How many transfers are there?

How frequent is the service?

Are reefer equipment units available?

What happens if the ship is lost?

How are exceptions handled?

What additional costs might arise?

The idea is not to always choose the most expensive or the cheapest alternative.

It's about choosing the one that offers the best balance between cost, time, reliability, and risk.

The true logistical cost

For the avocado exporter, logistics should not be analyzed solely as the price of transporting a container.

The true cost is the result of the entire operation: planning, land transport, equipment, port, freight, transit, tracking, possible delays, and all those costs that appear when something does not happen as planned.

Therefore, the next time we compare two quotes, perhaps the question shouldn't be:

Which one has the cheapest shipping?

But:

Which alternative allows me to get my avocado container to its destination with the best balance between cost, time, reliability, and risk?

Because in the logistics of a perishable product, freight is only one part of the cost.

Jorge Rosés W.
International Sales Manager
Seemann Trader
jroses@seemanngroup.com