Quote:
Originally Posted by burnsauto
Now are the inflated container fees a result of covid and the giant backlog? I'm sure it's more complicated than that, but if it were boiled down...
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Just think of freight forwarders as travel agents.
A ship will carry 6000-12000 TEUs, most of those are booked by companies that do large volume of goods. Think of any company same size/larger than Target, give/take a few billion in revenue.
If I bring 2 containers a month, that's a lot of revenue for a small business. Most of the capacity is sold to companies that book perhaps 40-400+ containers on a single ship, so the onesies and twosies will be last on the consideration list.
Unless you want to pay extra. It's just like airlines, they will happily bump other passengers off the plane if someone wants to pay full price, and when they run out of capacity on a consistent basis, the fares start creeping up.
Edit: the fees are actually fairly consistent. Most of it is just regular ISF paperwork filing (per company/shipment), outbound customs inspection (if needed), outbound port loading, inbound port offloading, CBP fees/inspection (if necessary), and inland freight from port to destination. Only variables during this process are the actual ocean freight itself via ocean liner, the weight of the container (as it affects the port handling fees), as well as any duties. Duties are anywhere from 1 to 5%+ depending on category of goods and whether it's declared properly or not.
Before COVID-19, a typical 40' container might break down as the following from TYO to LGB:
$1000-1500 container movement --> this is the part that is inflated right now, running about 2-5x+ normal pricing. Shanghai to LGB is close to $15k for a 40', Vietnam to LGB is even crazier, $34k each container for a 40x 40' shipment leaving this week (that my freight forwarder gave me as a point of reference)
$2-400 for inland transport
$50-100ish ISF filing fee
$200-600+ each port loading/offloading (export port and import port will have different rates based on local labor costs, US ports tend to be highest due to union contracts)
add on another $100-500 in secondary fees for documents, declaration, etc.
Duties for new auto parts from Japan tend to be average about 3-4%, so a 40' valued at $75k will have about $4000 of duties.
Total cost to move a $75k 40' container is around ~$6000-8000, the target would be to have your freight be single digits vs your cost, ideally around 7% if possible for automotive stuff that is imported. This changes depending on value of goods as well as volume, so higher value items like computer components might have lower cost per unit.
Ultimately, each TEU (twenty foot equivalent unit aka 20' container) has a maximum weight, so when shipping raw material or even metal parts, there's only so much you can pack in each container. Probably the most expensive containers I've ever seen are $5-10M range for a single 40'
Quote:
Originally Posted by dizzariot
In all honesty, I think you were just looking for an excuse to bitch, which is fine. We all do it on Zilvia.
You are not like the people we are 'whining' about but I think you wanted a reason to whinge about your circumstances.
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I didn't need a reason to whine about it, especially not this thread, I could've done it myself in my own FS thread.
The reason why I posted it here is because my situation illustrates the RISK every flipper/seller/importer/reseller/etc faces, there is an inherent risk in trying to procure parts to sell.
I can go on YaJ tomorrow and buy a bunch of parts to resell. Hell, I don't even have to do it myself, my friend in Japan can do it for me full time and undercut everyone else.
But much like every thing sold by every person looking for a profit, it's just a question of what profit margin they want for their time. Some are after maximum profit, others know how to buy rare/hard to find parts and flip for a profit, both are fine.
If I really wanted to complain, I would've done so 10+ years ago when the exchange rate was above 115-120 JPY to 1 USD, and everyone (and their mothers) stationed in Japan were shipping goods via USPS domestic mail from APO/FPO, at rates that no one else could touch.
every single Up Garage or other shop/store was raided to the point where there was nothing left. This went on for years, no one complained about it then, no one complains about it now.... even though that stuff was all subsidized by the US taxpayer. Ebay sellers were a dime a dozen before all this Facebook/Instagram/social media stuff.
Some people just know how to hustle. That's all.
But yes, I'm totally whining about my situation. When the Trump tariffs hit in 2017 my friend lost about $50M overnight bc she had about 40 containers inbound from overseas. That wiped out about 10 years of profits in her industry.
These are all risks anyone buying from overseas and selling takes. I'm 100% for flippers as long as they sell what they claim to be selling.