Container Shipping Costs

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  • m4a1usr
    Fast Electric Addict
    • Nov 2009
    • 2032

    #1

    Container Shipping Costs

    Yeah it sounds like a boring and useless topic but I recently decided (Daughters classroom project) to detail some basic costs associated with bringing goods across the pacific. And the details are a bit sobering. The cost of shipping a 20ft container is about $1000. Doesnt matter its contents as long as its legal goods. Average container ship carries about 8,400 20ft containers. The latest big boys can actually carry about 11,000! So you do the math. Essentialy thats $8 million bux for the shipper/trip. Fuel costs are about $99,000 a day, crew wages about $18,000 a day. I rounded off the ships crews costs (food, water, etc) to $1000 a day. Now I used the average trip from China to Long Beach, Ca as my guide. Thats a 12 day trip on average. Add all that up and you get a one way trip cost of $1,416,000. I didnt add some of the obvious other costs, like insurance (approx. $400,000) and Maint/Repair because I couldnt get accurate numbers, but it still offsets the profits.

    That boils down to more then $6 million dollars of profit per trip. What that means is these $100 million dollar ships pay for themselves very fast. I wonder how much the owners pocket and how much they reinvest in the company?

    John
    Change is the one Constant
  • NativePaul
    Greased Weasel
    • Feb 2008
    • 2764

    #2
    Don't forget the dock and crane fees, I don't know what the hourly rate for those is but I bet its not small potatoes and loading/unloading 8400 containers isn't going to be a 5 minute job.
    Paul Upton-Taylor, Greased Weasel Racing.

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    • befu
      Senior Member
      • Aug 2009
      • 980

      #3
      transportation also. We send about a 1/4 to 1/3 of what we produce overseas from our factory. We pay a brokerage house to handle picking up the freight from our place, going to a port and handling customs, loading the ship, paying the freight portion of the ship, unloading at the other port, customs, and then transporting it to the end user.

      Granted, that would get streamlined if we were a big player with rail service and such, but the ship is one of the cheapest parts if I recall.

      I do find it interesting how many containers are on a ship and what the one way freight bill is for the shipping company! I went into the wrong business..... again!

      Cool post,

      Brian

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