The market for the ddu incoterms is also subject to volatility due to food shortages caused by war

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Factors affecting freight forwarder ddu incoterms Freight transportation

In international freight transport, one of the most concerning issues is the price of freight transport. The cost is directly related to the cost of transportation. Because many exporters do not understand the price of transportation very much, and often have a lot of extra spending, then today to understand the factors of the price of international freight transportation?

The ddu incoterms price of shipping

Transportation price is commonly known as freight, generally refers to the cost generated in the process of freight transportation. Another more important concept in transport price is the transport price index, which is generally used to measure transport price level and dynamics in the international shipping market.

The Conflict between Russia and Ukraine is creating an unprecedented food crisis, French President Emmanuel Macron warned after a NATO leaders' summit in Brussels, Belgium, according to news reports. The conflict has made it difficult for many countries to get regular supplies of wheat and cereals, a situation that is likely to worsen over the next year to 18 months.

The Black Sea region of Russia and Ukraine is one of the "breadbaskets of the world," with Russia being the world's largest wheat exporter and Ukraine the fifth largest in 2018, according to the World Bank. Together, the two countries account for about a quarter of global wheat exports. Wheat now accounts for more than 35% of the world's population as a staple food. Russia and Ukraine supply 30 percent or more of wheat in 55 countries and 50 percent or more in 26 countries.

As of March 23, local time, the mainspring crop area of 2022 in Ukraine's 11 prefectures is estimated to be 5.99 million hectares, 1.69 million hectares less than last year (7.679 million hectares). Ukraine is a major agricultural producer and exporter in the world. According to the prediction of the Ukrainian Agricultural Policy Department, the sown area of Ukraine may decrease by 30% due to the Conflict between Russia and Ukraine, which will have a negative impact on the food security of the countries that import Ukrainian agricultural products.

"We are in a situation where problems are serious and the future is still uncertain," Maximo Torreiro, chief economist of the UN Food and Agriculture Organization's Economic and Social Development Department, told CCTV recently. He pointed out that Ukraine had 7m tonnes of wheat and 12m tonnes of maize waiting to be delivered, meaning 20m tonnes of grain were in short supply.

As the situation between Russia and Ukraine deteriorates, Ukraine, Russia, Belarus, Hungary, Argentina and Turkey have issued food export bans, restricting the export of wheat, rye, barley and corn, and the impact on world food security and food prices are gradually expanding.

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Factors affecting the shipping price of ddu incoterms

In the process of international transportation, there are many factors affecting the price of transportation, in addition to some fuel and labor costs, there are many important factors. For example, the nature of the ddu incoterms, its own value and packaging form, as well as stowage factor and transporter's requirements for transportation, etc. There will be some fixed costs during the use of the ship, such as the ship's maintenance insurance and fuel consumption. There is also the change of supply and demand in the ddu incoterms market. In the transport off-season, transport prices are relatively low, in the transport of the peak season, transport prices will be relatively high.

The transportation prices are different for different ddu incotermss

In the general international trade process, the price of transport according to different modes of transport, price is also different. International freight rates are divided into sea freight, air freight and rail freight.

The specific ddu incoterms freight rate can also be subdivided. For example, rail freight can be divided into passenger freight and freight. Shipping rates are also divided into tramp rates and liner rates. Tramp rates are also affected by market supply and demand relations at that time, while liner transport costs are relatively fixed. Airfreight can be divided into general goods, designated goods and special goods, and the specific transportation price is also determined according to the weight of transportation, at the same time, even if the volume is small, the weight is also counted by weight, but if the opposite is large, small weight, also according to the specific volume to calculate.

The choice of international logistics, the quality of logistics will affect the seller's store score, but also affect customer satisfaction rate.

Logistics advantages of the ddu incoterms in the destination country and region

In Eastern Europe, DHL has advantages in Romania, Bulgaria, Moldova, Hungary and other places while EMS has advantages in Greece, Russia, Turkey and other places. Western Europe, Northern Europe, southern Europe can use DHL international express, TNT international express, these two kinds of customs clearance capacity. TNT has a clear advantage in the Netherlands and Belgium.

For Canada, the United States and other American countries, FedEx, UPS and DHL are all suitable for their strong customs clearance capacity and fast time.

Applicable to Asia, South Korea, Japan, Thailand and other Southeast Asian countries DHL, FedEx. DHL and FedEx are time-saving, but THE price of DHL is higher. Indonesia also suggests USING DHL because it has a stronger customs clearance capacity.

In Oceania, DHL and UPS aging fast, with high prices; TNT and FedEx have lower prices but relatively few outlets. Particular attention should be paid to the "Made in China" label on the packaging of Australian products.

Middle East express ARAMEX, EMS for Middle East region. Commercial express in Africa is very expensive. In remote areas, IT is suggested to send EMS international express. EMS countries have the strongest customs clearance capacity. The air express ddu incoterms can reach many countries and regions that commercial express and postal express cannot reach, so the wide range of ddu incoterms transportation is its advantage.

Contact a professional freight forwarder- D DPFORWORLD-Professional freight forwarder in China

Freight forwarders with large volumes of business can get large international express at lower discounts; And personal orders directly official, the price will certainly be more expensive. Secondly, the freight forwarders are skilled in business and are very familiar with the channels and market conditions of major international express companies. Know what to send, what to send and how to send. Directly report demand, for you to match the most cost-effective logistics, save worry and money.

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