By Nick Lung    Photo：CANVA

If you are an American middleman who often does international trade, you purchase products from Asia, ship them back to the United States, wait for customers from various countries to place orders, and then export them to the client. How much will it cost?

1. The price of the product itself

2. Shipping costs from Asia to the United States

3. US local import tariffs and shipping costs

4. US storage fees

5. Shipping costs from the United States to customers in various countries

6. Other possible costs

However, as an American customer, you can choose to save a lot of costs by setting up a shipping warehouse in Asia. As long as you set up a warehouse in Asia, you can save shipping costs to the United States, local import tariffs and shipping costs in the United States, and shorten delivery time. Therefore, the focus of this article will be on the above three points.

Save on shipping costs to the United State

Since the outbreak of COVID-19, we can find that both sea and air freight rates are in an unstable fluctuation, and under the operation of shipping companies and airlines, freight rates are much higher than before the epidemic, leading to many problems, such as people's willingness to buy Decline, inflation problems and so on. Although the epidemic has eased and life has returned to normal, transportation costs are still a heavy burden! Setting up a warehouse in Asia can save you the shipping costs to the United States and export the goods directly to the designated destination country to achieve the purpose of cost control.

US local import tariffs and shipping costs

We all know that as long as there is import, there will be taxes and fees, not to mention the new government's views on tariffs after taking office. New tariffs are bound to bring uncontrollable risks to your supply chain and market layout. By setting up Asia Warehouse, goods are no longer imported into the United States, saving import tariffs, but the same destination will still have tariffs, but overall you still save part of the cost. In addition, it can save the transportation costs of shipping goods to warehouses in the United States and the local storage fees in the United States, which is a great plus for increasing the flexibility of the supply chain. In addition, the United States is vast, and inland transportation also requires time and manpower and port congestion. Take the situation into consideration.

Shorten delivery time

From an international perspective, almost all cargo from Asia must travel via the Pacific Ocean to the west coast of the United States, a journey of about 17-20 days. Imagine if you want to ship goods back to the United States and then export them to Australia today, how long will it take? If you set up a warehouse in Asia, you can ship directly to Australian customers after receiving the order. How can you quickly export goods to Australia in the post-epidemic era? Delivering goods to customers has become a topic for all importers and exporters. So when we find that flights, port congestion, and empty flights are already a normal occurrence, we may try to find another way to optimize our logistics delivery. Serve!

This article originated from https://www.tgl-group.net/en/news-detail923_5.htm

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