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I thought this was interesting - paperwork costs more than the actual freight!!

 

Australia’s containerized sea cargo supply chains suffer from over $1 billion of embedded unnecessary costs. Every container shipment in global maritime trade today requires on average approval from 30 disparate organizations and more than 200 document verifications. In fact, the cost of processing documents and information for every container shipment is estimated at more than twice the cost of the transport. Through blockchain, IBM estimates that up to 20% of unnecessary supply chain logistics costs could be cut, resulting in billions of dollars saved.

 

Still WAY too much. No wonder production costs are high!

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I thought this was interesting - paperwork costs more than the actual freight!!

 

Australia’s containerized sea cargo supply chains suffer from over $1 billion of embedded unnecessary costs. Every container shipment in global maritime trade today requires on average approval from 30 disparate organizations and more than 200 document verifications. In fact, the cost of processing documents and information for every container shipment is estimated at more than twice the cost of the transport. Through blockchain, IBM estimates that up to 20% of unnecessary supply chain logistics costs could be cut, resulting in billions of dollars saved.

 

Still WAY too much. No wonder production costs are high!

Is that the Aussies suffering from their Sclerotic Bureaucracy or the Aussies suffering from a Global Bureaucracy ? 

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It’s a global thing. The single greatest innovation that happened to the global supply chain & shipping industry was the introduction of the 40ft standard container. It made the whole process about 90% more efficient but that was decades ago. If a container falls off a ship on a storm today it can take up to 2 years to settle the loss / claim - due to paper chain of different agents and parties in the mix making it hard to confirm exactly who owned what at the time of the loss and who was responsible (exporter, importer, shopper, agent, trade finance / bank, insurer, buyer, seller of goods, finished item or part finished, value at time of loss, local import regulations, taxes, tarrifs, trade embargoes etc etc etc). The new blockchain technologies being deployed in this space are designed to standardise all of this and make it more transparent to all parties and therefore instantly clear what’s happening and who is responsible / liable.

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Australia is a "walk in the park", you want to try importing something into Brazil.

The list of tariff classifications is over 1000 pages and then there are the arguments about which tariff is applicable.

Then there are all the other taxes to be considered, all with an associated processing cost....

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In fact, the cost of processing documents and information for every container shipment is estimated at more than twice the cost of the transport. 

 

I'm not surprised and I bet a majority of it is due to inefficient, unproductive, bureaucratic red-tape.

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The actual line on the invoice that say 'freight cost' are usually a small % of the price.

For full 20ft containers (FCL) the fright cost is around 50%, if they are 40fters then it's higher.

For LCL, less than a container load, which is how much travels the freight cost itself can be as low as 10% of the invoice costs.

It is very common to get a invoice with 20 lines of fees, levies, taxes and so on plus one line that is the actual freight cost.

We send stuff to Aussie a lot and a recent one was 700 odd, of that 140 was the freight costs the rest was fees and taxes.

We sent a shipment of rope direct from our factory in Japan to a company 10 miles from the US wharf. It cost 500 odd to get it picked up from the factory, taken to the ship,the ship sail 1/2way around the world to the US wharf. It then cost 1500 to get it from the ship to the receiver. Going into Aussie is not much different, they also have fees and taxs out the wazoo.

Knowing stuff like that is why when I see someone wanking on about cheaper to buy it overseas I just see an ignorant muppet, the same muppet who is also a deliberate tax dodger.

 

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Don't you think some exporters/ importers may get much better container / fright rates than you? ( like Alibaba) and thus this is why people get a better price for the same spec'd product from overseas.

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On 27/03/2020 at 10:10 AM, Knot Me... maybe said:

 

It is very common to get a invoice with 20 lines of fees, levies, taxes and so on plus one line that is the actual freight cost.

 

And each line had different tax applicable, a trap for the inexperienced when entering into the accounts system.

For added fun.. the freight forwarder’s GST total used a rounding system that must have been based an rolling a dice.  

 

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3 hours ago, Sailing NZ said:

Don't you think some exporters/ importers may get much better container / fright rates than you? ( like Alibaba) and thus this is why people get a better price for the same spec'd product from overseas.

Better? Yes.

Much better? No.

Better enough of a difference to make a significant one on the shelf? A solid No.

The freight component is variable due to when, ship speed, size of box, time of year, shipping companies just wanting more money. But of the whole fright invoice it is one of the few that is and it is very rarely the majority of the invoice total, most are fixed costs whether you bring in a 40ft container or a feather. Customs and the other monopolies with their fingers in there have no need to do deals for anyone and they don't.

And I reject your blanket claim you can buy the same spec oversea cheaper. In some case oh hell yes but in all, absolutely not.

 

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When I used to import Sound equipment, I was often shocked at how little freight cost. I was not a large importer. I did not have regular shipments. The Shipments were often only Pallet sizes. I had a freight forwarder that did all the paper work for me, because that is huge an complicated. I just paid the bill, of which was often so low, I could not believe how little it cost. The actual freight charge was high, but all the handling and Customs and blah blah was so cheap, I could not understand how the forwarder made money. All I had to do was place the order and notify the forwarder and then wait.

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10 hours ago, Knot Me... maybe said:

Better? Yes.

Much better? No.

Better enough of a difference to make a significant one on the shelf? A solid No.

The freight component is variable due to when, ship speed, size of box, time of year, shipping companies just wanting more money. But of the whole fright invoice it is one of the few that is and it is very rarely the majority of the invoice total, most are fixed costs whether you bring in a 40ft container or a feather. Customs and the other monopolies with their fingers in there have no need to do deals for anyone and they don't.

And I reject your blanket claim you can buy the same spec oversea cheaper. In some case oh hell yes but in all, absolutely not.

 

Interesting that. In your industry that. May be right but in many industries where higher quality control applies there is no difference at all because quality is heavily regulated and any crap has been eliminated by historical performance and purchaser expectations.

Maybe your industry if full of cowboys? Or poor governance?.... Or does not need high quality options?...  In the customers blurred eyes?

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On 5/03/2020 at 3:50 PM, tuffyluffy said:

 

I'm not surprised and I bet a majority of it is due to inefficient, unproductive, bureaucratic red-tape.

Agree 100%...  A bit like govt, council's,...

Paperwork/ overzealous regulation has made this country very expensive and inefficient.

Yet we still do not physically check every container for contriband.. but the paperwork is anally probed by microscope to the nano particle level.

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I'm just pleased we are now permitted to open and devan containers. We have a couple arriving tomorrow which aren't "essential"

For a while it looked like they would sit in our yard until the end of the lock down.

 

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1 hour ago, Sailing NZ said:

Interesting that. In your industry that. May be right but in many industries where higher quality control applies there is no difference at all because quality is heavily regulated and any crap has been eliminated by historical performance and purchaser expectations.

Maybe your industry if full of cowboys? Or poor governance?.... Or does not need high quality options?...  In the customers blurred eyes?

The costs for a container are for 'a container with up to 21t of goodies inside it', what those goodies are, the quality of them and whether or not the box if full or empty is pretty much irrelevant. If anything the higher the quality the less any freight variation will make on the price. For example the freight component will be very significantly higher and affect the final price far more with a Gt Wall ute than it would a Aston Martin.

Yes the marine industry does have it's fair share of cowboys, no doubt about that, but again that doesn't affect freight costs.

6 minutes ago, darkside said:

I'm just pleased we are now permitted to open and devan containers. We have a couple arriving tomorrow which aren't "essential"

For a while it looked like they would sit in our yard until the end of the lock down.

Same here, I'm waiting for the call the truck/s are on the way so I can pop out and unload them. We have a procedure to ensure everyone has no need to leave their bubble.

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IT, Grant Robertson gave the go ahead to devan even for non essential on Firday.

They are concerned about both lack of port space and having enough empty containers to export produce from NZ.

We will send one guy in to do the MPI stuff, and another to go in later to drive the machines out, so no bubbles burst.

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The police are saying that as it's easier for the simple and stupid to understand than it appears they are able to understand what exactly the 'lock down' is there to achieve. If you did not say no travel the roads would be chocker, if you said 'try not to travel' the roads would be very busy so all you can do is say 'No travel' in the hope most won't, which is what we are seeing. The idea is more travel means more chances to pop bubbles or what is worse and the primary driver is everyone pisses off to their Taupo bach then gets crook only to find massive que of coughing farting Aucklanders lined up to get into Taupos 4 bed facility. The exact same applies to the boaties parked at Barrier as another example, if they become crook then they could easily cause the death of Barrier locals by depriving them of their meagre facilities.

No bubbles have any reason to be nor will any be compromised by my actions, quite the opposite.

 

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9 minutes ago, darkside said:

IT, Grant Robertson gave the go ahead to devan even for non essential on Firday.

They are concerned about both lack of port space and having enough empty containers to export produce from NZ.

Yeap there is a massive issue with containers right around the world. Due to China shutting down there are 500,000 containers sitting there waiting to be shipped out, which started to happen last week. Due to that NZ has had a massive shortage of empty containers needed for it's exports which is why they want incoming emptied quick not parked up for a month. The imbalance is that bad some container ships are chocker block shipping empty containers to help correct it.

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we are still receiving the last back orders for our business - air freighted out of Brazil. DHL and customs are still working pretty much as normal, just that most of DHL's office staff are working from home

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