How Much Does Bangladesh Re-export Trade Actually Cost?
Resolved
I plan to engage in re-export trade with Bangladesh and would like to know approximately how much capital investment is needed. I am unsure about the various costs involved in re-export trade in Bangladesh, such as cargo transportation, warehousing, customs declaration, and whether there are any other hidden fees? I hope experienced individuals can help me analyze this so I have a clearer idea and can make a budget in advance.
Trade Expert Insights Answers
The costs involved in Bangladesh re-export trade are relatively complex. Firstly, there are cargo transportation costs, which depend on the weight and volume of the goods, the mode of transportation (sea, air, etc.), and the origin and destination ports. Sea freight is relatively cheaper, and there are price differences between full containers and less than container loads. For example, a common 20-foot full container from major Chinese ports to Chittagong port in Bangladesh might cost $2,000 - $3,000 during the off-peak season, and the price could double during the peak season.
Warehousing costs are related to storage duration and warehouse type. Ordinary warehouses might charge $20 - $50 per cubic meter per month. Customs declaration fees are generally charged per bill, approximately 300 - 800 RMB per bill. Additionally, there are miscellaneous fees such as document fees and terminal handling charges, which are around a few hundred RMB per bill. As for hidden costs, such as inspection fees and demurrage fees incurred due to cargo issues, these should be avoided as much as possible. Overall, if the cargo volume is not large, preparing 50,000 to 100,000 RMB in capital to cover various expenses is considered relatively stable.
Transportation costs are the largest portion, and opting for sea freight can save some money. Also, negotiating an all-inclusive price with the freight forwarder might help avoid some hidden costs.
In addition to regular expenses, pay attention to some special taxes and fees in Bangladesh. It is best to consult with professionals in advance to clarify them.
Cargo loading and unloading fees also need to be included, which are usually calculated by tonnage or by piece, depending on the local port regulations.
If value-added services such as packaging changes are involved during the re-export process, there will also be costs, so don't overlook them.
Understand the free storage period at Bangladeshi ports, as exceeding it will incur high demurrage fees.
Exchange rate fluctuations can affect costs; consider exchange rate risk appropriately when budgeting.
Engaging a reliable agent to handle the re-export trade, although it incurs an agent fee, can help avoid many troubles and potential expenses.
Charging standards vary at different ports in Bangladesh, so choosing the right port is important.