According to the World Bank data, Merchants in West and Central Asian and Sub-Saharan African countries face the highest shipping costs to export their products. It is because these countries have mountainous terrain and lack of transportation infrastructural facilities and port access.
However, shipping prices in China have also surged amidst the pandemic due to shortages of container space. As per TIME reports, transporting a 40-ft steel cargo container by sea from Shanghai to Rotterdam costs $10,522, which is 547% greater than the average cost in the past five years. Similarly, the shipping cost has increased by 350% between China and the UK in the past year. It will remain high in 2022 and stabilize by 2022, as estimated by the World Economic Forum.
This article explores countries with the highest shipping rates and how the cost changes as per different modes of shipping.
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
Amazon’s Sellics service analyzed 40 G20 and EU countries (excluding all countries in South America and South Asia) to figure out how much it would cost to ship a 2kg package to each country via local express shipping.
Following are the countries that were found to be the most expensive (in a particular order) to ship to:
- South Korea
This research was conducted before the pandemic.
During the covid-19 crisis, the shipping cost in China also increased by 360%. The shipping cost of a 40-foot container from Asia to northern Europe was above $9,000, from China to the United Kingdom was between $12,000 and $18000, and from China to the United States was $20,000 in October 2021. In contrast, the current shipping cost for a 40-ft container from China to Canada is between $15000 and $20000.
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.
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.
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.