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Feb 11, 2025 • by Sandy Ahluwalia
Canada-U.S. Trade War and its Impacts on Shipping
Shipping in Turbulent Times and how 🍁Secureship 🍁 can help ease that pain
Read moreby Paul Bourque
Dec 18, 2023
Key Points
The cost of shipping to India from Canada could be relatively modest if it is a small document package travelling by ship versus a large container of sold goods flown to India arriving within 3 days of leaving Canada. But within those two extremes, lies a range of factors that affect a shipment’s cost – size of the parcel, the courier selected, insurance, duties and taxes, and other other little known fees for handling or storage.
In the following blog, we will explain some of the costs associated with international shipping, be it to India or elsewhere, equally for your business or personal purposes. And while shipping parcels can be a complicated and time-consuming chore, Secureship has years of experience helping its clients reduce the costs, hassles, and efforts required for this important and necessary task.
Table of Contents
As can be expected, the further your package has to travel, the more it will cost for its delivery, and India is quite far from Canada. But its weight and size also has a significant impact on the delivery charges. For example, a small Documents Only package bound for Mumbai could cost $82 CAD by air freight while a very modest 5 kg box could be upwards of $274 CAD. And if your shipment is heading to a small town or village far outside of a major centre such as New Delhi or Mumbai, then expect those delivery charges to be even higher.
The other major component of shipping charges is its delivery time. The cheapest way is by surface freight – ship transport, but the time could range from 1 to 3 months. On the other hand, courier services using air freight can guarantee parcel delivery within a range of 3 to 12 business days, and as expected, the shorter the time, the more it will cost you.
There are a number of smaller and lesser known charges that may increase your shipping bill. Amongst them: insurance; Saturday services; residential delivery; fuel surcharge; and additional handling. Some you have control over; others not.
Shipping insurance is often a consideration against parcel damage or loss en route to its destination. But be aware that not everything can be insured, including items such as personal belongings, liquids, and jewellery. However, if you decide to take out insurance, it is very important that the contents are packaged to the ISTA 3A packaging standard otherwise the coverage will be null and void.
If you request or require Saturday shipping or receiving services, that will be added to your bill. So, simply avoiding your parcel being handled on a Saturday will help keep your shipping costs in check.
If the parcel is destined to a residential address, an extra charge may be incurred. You can avoid this fee if you can arrange delivery to the recipient’s workplace or ask for the parcel to be held for the recipient to pick it up themselves.
There is not a lot you can do about this fee. It is calculated as a fixed percentage of the shipping rate, but it fluctuates with changing oil prices.
If your package is made from wood, steel, or plastic rather than a traditional cardboard box, then a handling fee will be applied.
Countries apply duties to incoming goods as a way of generating income or to help protect national industries from foreign competition. Indian customs apply a 22% duty rate on most shipments from Canada to India; however, spirits and wines incur a 150% duty, beer 100%; home appliances 50%; and documents 0 – 10%.
Most countries also impose a value added tax (VAT – GST in Canada) on imports, and India is no different. Indian VAT rates vary depending on the item entering the country as shown below:
Indian customs calculate the amount using the CIF value of the shipment (the sum of the customs value, insurance costs, and freight expenses).
As we have shown, the cost of shipping items from Canada to India can be quite expensive even if they are small packages.
However, these costs can be mitigated by selecting longer delivery times.
In addition, there are other factors that add expenses to an international shipment – insurance, Saturday services, residential delivery, fuel surcharge, additional handling, customs duties, and a country’s VAT or GST. Again, you have control over some of these, but not all.
So, with proper preparation and Secureship’s help, you can ship a parcel anywhere with full knowledge of what it will cost you or your business.
Feb 11, 2025 • by Sandy Ahluwalia
Canada-U.S. Trade War and its Impacts on Shipping
Shipping in Turbulent Times and how 🍁Secureship 🍁 can help ease that pain
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