I don't know much about transshipment trade. I'd like to know what kind of actions belong to transshipment trade and specific examples, and also understand the difference from general trade. The best answer explains that transshipment trade involves the re-export of imported and exported goods through a third country, such as Chinese apparel being re-exported to the United States via Singapore. Transshipment trade involves three parties and differs from direct export in general trade, with a more complex process.
Is transshipment trade more expensive than general trade? Let's discuss!
Resolved
I've been considering different trade methods recently and want to know if transshipment trade is more expensive. Compared to general trade, what are the cost differences? I mainly import and export electronic products. I heard that transshipment trade may involve more steps, such as loading and unloading goods at the transit point, warehousing, etc. Will these increase costs? If the fees are too high, I may have to reconsider.
Trade Expert Insights Answers
The cost of transshipment trade is not necessarily higher than that of general trade; it depends on the specific situation. In terms of transportation costs, if the transit point is chosen appropriately, it may be close to or even lower than direct shipping costs. For example, direct shipping costs for certain special routes may be high, and it might be more cost-effective to transfer through a suitable transit port. Regarding warehousing costs, although there will be warehousing at the transit point, if arranged reasonably with short warehousing time, the increased cost will be limited. Furthermore, transshipment trade can avoid some trade barriers and tariffs. For instance, some countries impose high tariffs on specific electronic products. By using the preferential policies of the transit country through transshipment trade, tariff costs can be reduced. Therefore, for your import and export of electronic products, if you face trade barriers, transshipment trade might be a good way to reduce overall costs.
However, transshipment trade may also incur additional expenses for document processing, agency fees, etc., due to increased steps, which requires comprehensive evaluation.
Transshipment trade can be more expensive. With additional transit steps, there will be extra loading and unloading fees. If the goods are damaged during loading and unloading, it may also lead to losses and handling costs.
Not necessarily more expensive. Some transit ports offer preferential policies to attract transshipment business, and warehousing fees may have discounts, which can reduce costs.
If the transshipment trade process is complex and involves more procedures, the corresponding handling fees will increase, potentially leading to higher costs.
For electronic products, warehousing conditions may have high requirements. If the warehouses at the transit point that meet these conditions are expensive, the costs will be higher.
If long-term cooperation can be established with logistics providers at the transit point, transportation and warehousing costs may be negotiated down, so the cost of transshipment trade may not necessarily be high.
During transshipment trade, goods are loaded and unloaded multiple times, which can increase packaging wear and tear. Replacing packaging will also add to the costs, so it may be more expensive.
If you are familiar with the operations of transshipment trade and can efficiently arrange each step, reducing waiting time, the costs will not increase significantly, and it may not be more expensive.
In some transit locations, infrastructure is not well-developed, and goods transit efficiency is low, which will increase time costs and make transshipment trade more expensive.