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What does international logistics cost include

As the name implies, international trade refers to the circulation of import and export goods, which is different from the transaction of ordinary goods, and is a transnational service or goods transaction. The international logistics cost refers to the sum of a series of expenses involved in the transaction from production to use, such as material production, packaging, transportation, quality inspection and submission, etc., all the funds, human and material resources consumed in the service process are included. among them. All in all, international logistics costs are closely linked to the economic benefits of international trade. Therefore, the control of international logistics costs is conducive to the positive impact of international trade.

Contents of international trade logistics costs

(1)Cost of transportation

The sum of the expenses incurred in the transportation process is the transportation cost. The transportation methods include land transportation, water transportation and air transportation. The expenses include: transportation fee, transportation cost and cargo owner cost. Among them, the cost of the owner includes the loading and unloading fee, and the processing costs of the various transportation departments are coordinated; and the transportation cost refers to various expenses incurred during the transportation process, such as tolls and tariffs.

International Logistics Cost

(2)Cost of inventory products

Traditional inventory product costs include taxes, insurance, warehouse management, and damage to goods. It is worth noting that the reformed logistics cost covers the cost of capital. The cost of capital refers to the fact that the liquidity of the enterprise is occupied due to the inventory backlog, thus forming the capital cost of the goods being stocked. Of course, the inclusion of capital costs will have an impact on logistics costs and capital turnover, so companies should pay attention to the reduction of logistics costs and the turnover rate of funds.

(3)Management cost

The cost in this regard refers to the administrative costs incurred in the development of international logistics operations. However, it is difficult to distinguish between inventory costs, management costs, and transportation costs during the implementation process.

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