According to recent World Bank data, merchants in West and Central Asian countries, along with Sub-Saharan African nations, continue to face the highest shipping costs for exporting their products. The challenges stem from mountainous terrains and a lack of adequate transportation infrastructure and port access.
Additionally, shipping prices in China have surged significantly since the pandemic due to container space shortages. For instance, transporting a 40-foot steel cargo container by sea from Shanghai to Rotterdam now costs around $10,522, which is 547% higher than the average cost over the past five years. Similarly, shipping costs between China and the UK increased by 350% in the past year. Experts predict that these elevated shipping costs may persist into 2024 before stabilizing.
This article delves into the countries with the highest shipping rates, highlighting the ongoing challenges and trends in global shipping logistics.
Why Shipping So Expensive?
Shipping costs can seem high for several reasons. First, the weight and size of your package play a significant role. Heavier and larger items require more resources to transport, leading to increased fees. Additionally, fuel prices fluctuate and can raise shipping costs when they increase.
Another factor is the distance your package must travel. Longer distances mean more logistical challenges and higher costs. Seasonal demand also affects prices; during busy times like holidays, shipping companies may charge more due to higher volume.
Moreover, international shipping includes customs fees and import taxes, which can add to the overall expense. Lastly, shipping companies often use a variety of services, like tracking and insurance, which can also contribute to increased costs.
To help manage these expenses, Topshipping is an excellent choice. With competitive rates and a global network, Topshipping offers reliable and cost-effective shipping solutions. By choosing Topshipping company , you can reduce some of these high costs while ensuring that your package arrives safely and on time.
Countries with The Highest Costs To Ship Exports from
The shipping cost is one of the most crucial factors that affect profit margins. Over the past three years, the eCommerce industry brought a whopping $754.33 billion in profits due to the covid-19 crisis. While the increasing demand for online shopping disrupted the logistics and supply chain industry with a spike in international shipping costs.
That being said, the following countries will cost you the highest shipping cost in transporting a 20-foot container full of dry goods:
- Tajikistan – it costs around $9,050 to ship a 20 ft container of dry cargo.
- Chad – it costs around $6,615 to ship a 20 ft container of dry cargo.
- Central African Republic – it costs an average of $5,335 to ship a 20 ft container of dry cargo.
Other countries with highest shipping costs for a 20ft container include:
- South Sudan – $5,335
- Kazakhstan – $5,285
- Zambia – $5,165
- Uzbekistan – $5,090
- Kyrgyzstan – $4,760
- Zimbabwe – $4,265
- Iraq – $3550
- Azerbaijan – $3,460
- Rwanda -$3,245
- Uganda – $2,800
Countries with The Highest Cost To Ship Products To
Before the pandemic, Amazon’s Sellics service analyzed 40 G20 and EU countries (excluding all countries in South America and South Asia) to determine the cost of shipping a 2kg package via local express shipping. The research revealed that the following countries were the most expensive to ship to: Romania, Indonesia, Bulgaria, Turkey, China, Austria, Latvia, South Korea, and Cyprus.
During the COVID-19 crisis, shipping costs in China increased dramatically, with a 360% rise. By October 2021, the cost of shipping a 40-foot container from Asia to Northern Europe surpassed $9,000, while shipping from China to USA Kingdom ranged between $12,000 and $18,000, and from China to the United States, it reached $20,000. In contrast, the current cost of shipping a 40-foot container from China to Canada ranges between $15,000 and $20,000.
These soaring prices have made shipping from China one of the most expensive in the world, highlighting the challenges posed by the global logistics crisis. If you’re searching for the most expensive shipping company, many companies operating in these high-cost regions, especially in China, saw massive increases in their shipping rates during and after the pandemic.
Most Expensive State To Ship To
When it comes to shipping costs, some states are more expensive than others. Generally, Alaska and Hawaii are the most costly places to ship to in the United States. The main reason is their remote locations. Both states require special shipping arrangements, often involving air transport, which increases costs significantly.
Additionally, the lack of local distribution centers means that packages often have to travel longer distances to reach these states. This adds to delivery times and expenses. Other factors include the weight and size of the package, which can further raise shipping fees.
In contrast, states on the mainland, especially those near major cities, tend to have lower shipping costs due to better infrastructure and more shipping options. Understanding these factors can help you plan your shipping needs and find the most economical ways to send packages to various locations.
Who Has The Best Shipping Rates?
Other Countries with Shipping Rate Hikes
In 2018, before the pandemic, the United States was the most expensive destination for parcel delivery, with an average cost of US$63.20 per parcel.
Now, as we are in 2022, the countries with the highest shipping costs for heavy-duty items include:
- Singapore and Manila – The shipping charges are £3,526 (GBP) for a 20ft container and £4,679 (GBP) for a 40 ft container from the United Kingdom.
- Vancouver, CAN – The shipping charges are 4,449 USD for a 20ft container from the United States.
- Montreal, CAN – The shipping charges are 8,157 USD for a 20ft container and 9,472 USD for 40ft containers from Australia.
- Cape Town, SAF – The shipping charges are 11,899 CAD for a 20ft container and 13,997 CAD for 40ft containers from Canada.
Factors That Affect The Shipping Cost
Shipping prices depend on various factors, such as package weight, package measurements, location, country’s tax laws, type of shipping, infrastructure, and many others. It’s hard to know exactly which country will cost you the highest shipping cost. However, in general, the larger the size of your package, the more it will cost to ship it.
Also, your shipping and delivery speed options provided by your selected logistics company increase or decrease your net shipping cost. Air freight is much more expensive than ocean freight but takes less time and seems to be a viable shipping option when the cost of ocean freight is currently at an all-time high.
Following are the factors that affect the final shipping cost:
- Freight charges
- Consolidation fee
- Carrier-related fees
- Zone-specific charges
- Customs fees
- Cargo insurance
- Delay fees
- Additional charges: pick up & delivery, packing & unpacking, container loading, extra container loading time
Other crucial factors that contribute to increased shipping costs include the country’s infrastructure, taxes and duties, regulatory paperwork, and fuel costs involved in pickup and delivery.
Infrastructure
The country’s infrastructure (roads, airports, railroads, and ports) can impact how fast carriers can ship your goods. Countries with poor infrastructure tend to have higher shipping costs and less predictable transit times.
Regulatory paperwork (documentation)
You can’t ship your goods over borders without paying custom charges. To pass your shipment, you have to go through the paperwork and pay the customs fees, which ultimately affect the overall shipping cost of a particular country.
Duties and taxes
Exporting and importing goods will raise your shipping costs because you have to pay duties or tariffs. You can only trade with countries or regions that have trade agreements with your business.
Fuel costs involved in pickup and delivery
The mileage cost also comes into play when calculating the shipping cost. Once the package has been moved to the destination country, it will be picked up and delivered to the exact destination. The operating fuel cost of that state also adds up as per the service areas.
Final Takeaway
When you import or export goods, you must explore the shipping cost of different cargo and carriers and try to trade with those countries that won’t break the bank with your shipping rates. Look for ways to cut costs to improve your bottom line. This article will help you narrow down your search for good.
The Highest Shipping Cost FAQ's
Tajikistan, Chad, and Central African Republic are among the countries with the highest shipping costs for exporting products. Shipping a 20-foot container of dry cargo to these countries can cost between $4,265 and $9,050.
According to Amazon’s Sellics service, the countries with the highest shipping costs for local express shipping of 2kg packages include Romania, Indonesia, Bulgaria, Turkey, China, Austria, Latvia, South Korea, and Cyprus.
Several factors affect shipping costs, including package weight and measurements, location, country’s tax laws, type of shipping (air freight or ocean freight), infrastructure, customs fees, cargo insurance, additional charges, and fuel costs involved in pickup and delivery. Factors such as poor infrastructure, regulatory paperwork, duties and taxes, and high fuel costs can contribute to increased shipping expenses.
