How to reduce your export shipping charges

Maintaining profitability in a competitive global market requires more than just a great product; it demands an innovative, cost-effective export strategy. With India’s total exports reaching US$346.10 billion from April-August 2025¹, and traditional sectors facing intense pressure, actively managing the cost of exporting goods is essential for the nation to maintain their competitive edge.

This article will serve as your practical guide, providing actionable advice on how to reduce international shipping costs from India by leveraging strategic planning and expert partnerships. We will cover three key areas of focus: how to save on shipping costs via packaging and consolidation, minimizing duties and taxes, and utilizing technology, to create a more efficient and profitable export process.

#1: Implement strategies to reduce shipping costs

Controlling export shipping costs starts by actively managing every expense related to freight and handling. Exporters can immediately boost their profitability through these key strategies:

• Consolidate Shipments: Combining several smaller packages into one larger, consolidated consignment can lead to significant cost savings. This core strategy allows exporters to fully benefit from economies of scale and avoid the compounding charges of multiple minimum shipment fees.
• Optimize Packaging: Use lightweight yet durable packaging materials and always choose the smallest possible box size to directly reduce your freight costs. This is crucial because minimizing dimensions reduces the volumetric weight, which is a major factor in calculating both air and sea freight charges for your shipments.
• Negotiate and Compare Rates: To ensure the most cost-effective shipments for every order, especially for those with high volume, negotiate long-term contracts with your carriers for better rates. Additionally, always make sure to compare rates from different providers to find the most cost-effective option for each shipment.

#2: Minimize duties and taxes whilst taking advantage of FTAs

The most effective way to improve your export profitability is by reducing the tax burden on your goods, which requires strategic regulatory compliance. Here’s what to keep in mind:

• Understanding Duties and Tariffs: For every international shipment, various costs are levied at the destination, which can include export duties levied by India, and destination-specific tariffs imposed by the importing country. It’s important to constantly proactively monitor these costs, as they are never static. They fluctuate significantly based on your product’s Harmonized System of Nomenclature (HSN) code, its verified country of origin, and the specific trade agreements in effect with the destination.
• Leveraging FTAs and Government Schemes: You can gain a massive competitive advantage by proactively utilizing schemes that eliminate or refund these costs. Exporters should take full advantage of Free Trade Agreements (FTAs) to enjoy preferential or zero-duty access to key markets, and utilize government schemes like Remission of Duties and Taxes on Exported Products (RoDTEP) to get refunds on various duties and taxes that were not otherwise exempted.

To help you explore available benefits and market access, consider researching some of the following FTAs and schemes:

• India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA): Provides duty-free access to a significant percentage of Indian goods entering Australia.
• India-UAE Comprehensive Economic Partnership Agreement (CEPA): Eliminates tariffs on over 80% of India's product exports to the UAE.
• Remission of Duties and Taxes on Exported Products (RoDTEP): A government-backed program that refunds taxes that are not refunded through other schemes, such as Mandi Tax and electricity duties.

To explore the full list of India’s trade agreements, click here.

#3: Use technology to streamline export processes

Leveraging digital tools and customs expertise is essential to reduce friction in your export workflow, save administrative time, and maintain a decisive competitive advantage in the global marketplace. Here’s how you can achieve this:

• Digital Tools to Lower Costs: Online calculators and shipping portals provide accurate, real-time quotes, helping you forecast the total cost of exporting goods from India before committing. This allows your business to choose the most efficient shipping method and minimize surprises that could erode profitability.
• Customs Brokerage Expertise: Partnering with a logistics provider that possesses strong customs expertise can prevent costly delays and fines. This external compliance oversight ensures all shipping documents are accurate, the Harmonized System (HS) codes are correct, and all compliance requirements are met.

In this regard, DHL Express’s MyGTS service stands as the single digital gateway for streamlining your customs transactions, boasting key services such as:

• Accurate HS Code Identification: Leveraging Artificial Intelligence (AI), MyGTS instantly helps you find the correct Harmonized System (HS) code, eliminating guesswork and ensuring faster customs clearances with greater accuracy.
• Landed Cost Calculation: The Landed Cost calculator provides a precise estimate of the total price (including duties, taxes, and freight) before you ship, allowing for optimal pricing strategies and complete customer transparency.
• Documentation and Regulatory Guidance: The Pre-shipment Planner provides easy-to-use customs documentation templates and essential guidance on shipping regulations, which reduces administrative friction and the risk of costly delays.

How DHL Express can help you optimize export costs more effectively

Ultimately, smart strategies must be used to actively manage both freight expenses and regulatory risks when shipping from India. These include maximizing efficiency through shipment consolidation, using lightweight and smaller packaging to minimize volumetric weight charges, and strategically leveraging government schemes such as RoDTEP as well as FTAs.

In this journey, DHL Express stands as the ideal partner. With their specialized international courier services, including MyGTS, expert customs compliance, and robust online shipment tracking, they ensure the entire export workflow is optimized for speed and maximum savings.

Start building a more innovative and profitable export strategy today. Open a DHL Express business account and get the tools and expertise you need to save on every shipment.

Frequently asked questions about how to reduce shipping costs