Storage Charges: The Best FAQ Guide-Xiongda

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In international logistics, transportation and storage charges are unavoidable costs. This article will introduce the transportation and warehousing costs in international logistics in detail, hoping to help you better understand this field.

Types of storage charges

Warehousing rental fee

It is the fee that the seller needs to pay for renting storage space from overseas warehousing service providers. The calculation of storage rental costs is generally based on the storage area or volume.

Operation fee

the fee that the seller needs to pay for the operation and management of the goods at the overseas warehousing service provider. Operating costs include loading and unloading costs, packaging costs, marking costs, warehousing costs, and warehousing costs.

 

storage charges

 

Management fee

the fee that the seller needs to pay for the management and supervision of the goods at the overseas warehousing service provider. Management costs include inventory management costs, information management costs, risk management costs, etc.

Shipping fee

the fee that the seller needs to pay for the transportation of the goods at the overseas warehousing service provider. Shipping costs include sea freight, air freight, land freight, etc.

  • Storage charges Calculation
  • The calculation method of overseas warehousing fees is generally based on the charging standards of warehousing service providers, mainly including the following methods:
  • The storage charges is calculated on a daily basis: that is, a certain fee is charged per square meter or per cubic meter per day.
  • The operating fee is calculated by piece: that is, a certain operating fee is charged according to the quantity or weight of each item.
  • The management fee is calculated in proportion: that is, a certain percentage of the total value of the goods is used as the management fee.

 

storage charges

 

Shipping costs are calculated by distance and mode

To calculate unit volume, take the length, width, and height of a single unit in inches. Multiply the length x width x height to get the volume in cubic inches.

Convert this volume to cubic feet by dividing by 1728.

Round this volume to the nearest hundredth to obtain the value calculated as the storage fee.

Example: We have a container with dimensions 20″ x 16″ x 8″. The volume in inches is 20 * 16 * 8 = 2560 cubic inches. In cubic feet this volume is 2560 / 1728 = ~1.48148 cubic feet. We rounded this value to 1.49 cubic feet. This is the volume for which storage charges are calculated.

Influencing factors of storage charges

The calculation of overseas storage costs is affected by many factors, mainly including the following aspects:

  • Storage time: The longer the storage time, the higher the storage fee.
  • Storage area: The larger the storage area, the higher the storage cost.
  • Types of goods: Different types of goods require different warehousing services, and the warehousing costs will also vary accordingly.
  • Transportation distance: The farther the transportation distance, the higher the transportation cost.
  • Transportation method: The transportation cost of different transportation methods is also different, such as the cost of sea freight is relatively low, and the cost of air freight is relatively high.
  • Service quality: The difference in service quality will also affect the calculation of storage fees. Overseas warehousing service providers with good service quality generally charge higher fees.

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