Hidden Costs in International Shipping: Customs, Surcharges and What to Watch For

When a small Australian business owner receives what appears to be a great shipping rate from FedEx or DHL, the excitement often fades after a second invoice arrives with customs duties, brokerage fees, or fuel surcharges. Many small exporters face the same issue, turning what seemed like a good deal into an expensive surprise.

These hidden costs in international shipping can quickly eat into profit margins and make budgeting unpredictable for growing businesses. This guide breaks down common hidden shipping fees, how they’re charged, and how to avoid them before you send your next international shipment.

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Common Hidden Shipping Costs

Hidden shipping fees can quietly reduce profit margins when your courier quote doesn’t include all the extra charges upfront. Here are the main ones to look for before booking:

• Customs duties and import taxes: Government charges that apply when goods enter another country.
• Brokerage and clearance fees: What carriers charge for lodging customs paperwork.
• Fuel surcharges: Extra costs added when fuel prices rise.
• Remote area delivery fees: Added costs for deliveries to rural or hard-to-reach areas.
• Packaging and measurement fees: Charged when the parcel’s size or weight is higher than declared.
• Currency and administrative charges: For international carrier payments or processing in foreign currency.

Couriers & Freight includes these extra costs upfront, so businesses know the true cost of international shipping before they send a shipment.

1. Customs Duties and Import Taxes

Customs duties and import taxes are government charges applied when goods enter another country. Each destination sets its own rates based on the product type and trade agreements. In Australia, goods valued above $1,000 are subject to import duties and a 10% Goods and Services Tax (GST). The average duty rate is around 5%, although many products are exempt under Free Trade Agreements.

Planning also means knowing who pays these charges. With Delivered Duty Unpaid (DDU), the buyer covers duties and taxes when the parcel arrives. With Delivered Duty Paid (DDP), the seller pays them before shipping.

For example, a skincare brand in Melbourne ships a $500 order to the UK using DDU. When it arrives, the customer receives a surprise tax bill. To protect the sale, the business pays it, losing most of its profit.

Always confirm import rules and decide upfront whether duties and taxes will be paid by you (DDP) or your buyer (DDU).

Learn more about Customs Clearance in Australia.

2. Clearance and Brokerage Fees

Even when import duties are low, customs clearance fees can still add significantly to total shipping costs. When goods reach customs, the carrier must prepare and lodge import forms, verify paperwork, and ensure taxes are paid. For this administrative work, they charge a brokerage fee. It’s usually listed as a customs or handling charge on your invoice.

These costs sometimes appear after delivery if they’re not included in the original quote. Before booking, always check if brokerage or clearance fees are listed. Platforms like Couriers & Freight Customs Clearance show these charges upfront, so you know the true cost of shipping before you send your goods.

3. Fuel, Security and Peak Season Surcharges

These surcharges often explain why your final shipping bill is higher than expected. They fluctuate with fuel costs, demand, and security requirements, which means prices can shift month to month.

Fuel surcharge

Covers the rising cost of diesel and aviation fuel. In June 2025, FedEx applied 19.5–21.25% fuel surcharges, while DHL used similar rates updated quarterly.

Security surcharge

Funds airport screening and customs inspections required for international freight.

Peak season surcharge

Added during high-demand periods such as November–December when parcel volumes surge. In 2025, FedEx charged $8.25–$10.90 on select shipments, and DHL applied a demand fee from October to February.

Carriers update these surcharges regularly based on fuel prices and demand. Always check the latest surcharge tables on the carrier’s site before booking.

4. Remote Area and Redelivery Fees

Some destinations simply cost more to reach. Carriers apply remote area surcharges for deliveries outside main transport routes or in less accessible regions. For Australian shippers, this often includes places like Darwin, Alice Springs, and remote parts of Western Australia.

Major carriers such as DHL and TNT provide postcode lookup tools on their websites. This is a quick way to check whether an address is considered remote before you ship. Remote fees can add $30–$50 or more per delivery, depending on distance and carrier policy.

Redelivery fees are another common extra cost. If no one is available to receive the parcel, the courier must return and charge for the second trip. These charges add up quickly for e-commerce businesses shipping nationwide. Before sending a shipment, always check whether the carrier lists remote-area or redelivery fees.

5. Packaging, Handling, and Measurement Charges

Shipping costs aren’t based only on weight. They’re also affected by how much space your parcel takes up in a truck or plane. This is called volumetric weight, and it’s calculated using the formula Length × Width × Height ÷ 5000 (for air freight). A big, light box can cost more to send than a smaller, heavier one.

For example, sending a 2-kilogram pillow in a large box might be billed as a 6-kilogram shipment because of its size. Carriers like DHL and FedEx may also apply remeasurement fees if they find that the parcel’s actual dimensions differ from what was declared.

To avoid these extra charges:

• Use boxes that fit your items closely.
• Avoid excess packaging or void space.
• Double-check your parcel’s size and weight before booking.

How to Avoid Hidden Shipping Costs

Most hidden costs can be avoided with a few simple checks before you book. Here’s how to keep your shipping budget predictable:

• Compare the total landed cost, including taxes, duties, and surcharges, not just the base rate.
• Confirm your shipping terms. Make sure you and your buyer agree on who pays for customs or delivery charges (DDU vs. DDP).
• Choose transparent carriers. Platforms like Couriers & Freight show all costs upfront so you can plan confidently.
• Check customs and tax rules for each destination before sending.
• Track carrier surcharge updates monthly. Fuel and seasonal rates change often.
• Review invoices regularly to catch new or unexpected fees early.
• Consolidate shipments. Combining smaller parcels can cut handling and admin charges.

Building these steps into your process helps prevent surprise fees and keeps your shipping costs predictable.

How Couriers & Freight Helps You Ship Smarter

After understanding where hidden shipping costs arise, it’s clear how easily they can reduce a small business’s profit. For example, an online seller sends a $500 order to New Zealand and later receives a $200 bill for customs, fuel, and remote-area fees. What looked like a profitable sale quickly turns into a loss.

With Couriers & Freight, the process is far more predictable. Each quote displays every cost upfront: duties, taxes, surcharges, and delivery fees, before you confirm the booking. There are no follow-up invoices or unexpected charges after delivery.

Couriers & Freight’s integrated platform compares multiple carriers and shows the true cost of international shipping in one place. This helps small businesses plan better, protect their margins, and stay in control from quote to delivery.

Stop Losing Profit to Hidden Shipping Fees

See every cost upfront and ship smarter with transparent international quotes from Couriers & Freight.

Get a Quote Now