Today, lets talk about a topic that troubles many peopleforeign trade—The bulk cargo warehousing fee at Yangshan Port. Recently, a friend complained that for two batches of goods with the same weight being warehoused, the charges at Yangshan Port were so different: one batch cost more than 400 yuan, and the other batch cost more than 900 yuan, plus a 6% tax. So many people want to know, is there any supervision over such high fees? Why is there such a big difference?

Why is the warehousing fee at Yangshan Port so expensive?

First of all, lets understand what the warehousing fee at Yangshan Port is all about.Warehousing fee, simply put, is the cost of transporting goods from outside the port area into the warehouse. The level of this fee depends on many factors, includingthe type of goods, the charging standards of the freight forwarder, the time arrangement of warehousingand so on.

However, what puzzles everyone is thatfor the same goods with the same weight, why is there such a big difference in charges?This usually may involve the following aspects:

• Differences in charges of designated freight forwarders: This is what many people refer to as you know about designated freight forwarders. Many foreign merchants designate freight forwarders to handle the export of goods. Designated freight forwarders have limited profits abroad, so they usually transfer the costs to the domestic side to earn more profits. This leads to huge differences in charges among different freight forwarders. The quotations of some designated freight forwarders may be much higher than those of ordinary freight forwarders because they have specific service commitments to foreign parties, and the cost of such commitments often has to be borne by the exporter.
• Transparency of charges: The warehousing fee at Yangshan Port sometimes may entirely depend on your negotiation ability with the freight forwarder. Many people may not carefully confirm the fees with the freight forwarder before shipping, resulting in higher subsequent fees, which makes them very uncomfortable.

Is there a regulatory department in charge?

Many people think thatwith such high warehousing fees at Yangshan Port, isnt there a regulatory department to manage it? The answer is —No. This belongs to acommercial behaviorand is not within the scope of mandatory government supervision. The service contents and fee standards provided by each freight forwarder company are freely priced.

So, when you find that the warehousing fee is too high, the best way is to negotiate the price with the freight forwarder in advance. We can summarize it with a principle:Once the fees occur, they are difficult to change. If you dont confirm the fees before shipping and the goods are already at the port, it will be difficult to negotiate the price with the freight forwarder because they know you have no other choice at this moment.

How to deal with the high warehousing fee?

Facing the high warehousing fees at Yangshan Port, everyone may ask, as foreign trade companies or export enterprises, what methods can we use to deal with it? In fact, the following practices can be considered:

A. Negotiate the fees in advance

This suggestion seems simple, but it is the most effective.Before the goods are shipped, it is necessary to clearly negotiate with the freight forwarder or the customer the specific composition of the fees, including warehousing fees, handling fees, and all possible additional fees. Many foreign trade practitioners do not pay special attention to these details during the operation process, resulting in the freight forwarder arbitrarily increasing the price after the goods are warehoused, which makes them very passive. Therefore,the earlier and more detailed the confirmation of fees, the better.

B. Compare the quotations of different freight forwarders

There are many freight forwarder companies at Yangshan Port, and their charging standards are also different. If you find that the warehousing fee of a certain designated freight forwarder is particularly high, you may try to negotiate with the customer whether other freight forwarders can be selected.Compare the quotations of several freight forwarders, and you will find that the difference in fees is quite large.

C. Communicate with the customer and negotiate in a timely manner

If it is a freight forwarder designated by the foreign customer and the warehousing fee is outrageously high, you may communicate with the customer.Tell the customer about the composition of the fees and the impact on you, and try to negotiate with the customer to see if the freight forwarder can be changed or if the customer can bear part of the fees. Of course, the prerequisite is that the customer has a good relationship with you and is willing to listen to your opinions.

D. Use it as a bargaining tool

Sometimes, the level of the warehousing fee can also be used as a bargaining chip. If you have strong bargaining power, you can try to bargain with the designated freight forwarder, especially in the case of long - term cooperation. You can also let the freight forwarder understand that too high a fee will affect subsequent cooperation, and use their expectation of long - term cooperation to prompt them to make concessions on the fees.

The logic behind the difference in warehousing fees

In fact, many foreign trade people are puzzled about the warehousing fee at Yangshan Port mainly becausefor the same goods with the same weight, the charges are inconsistent. To understand this, we need to look at the logic behind it:

• Timeliness: If the goods need to be stored in the warehouse as soon as possible within a specific time, the cost will naturally increase accordingly. Freight forwarders will also consider the time cost when arranging loading, unloading and warehousing.
• Service Quality: Designated freight forwarders sometimes provide better services to customers, such as faster loading and unloading, more convenient customs clearance services, etc., and these will also be reflected in the cost.
• Market Conditions: The price of the warehousing fee also has a certain relationship with the market supply and demand. During peak seasons (such as holidays or the end of the year), the warehousing fee is often higher because the demand for warehousing and transportation at the port increases at this time, leading to a rise in costs.

Experience sharing: How to avoid high fees?

Finally, share some experiences to help you handle warehousing fees more skillfully:

1. Lock in the price in advance: Before cooperating with a freight forwarder, be sure to confirm all costs and try to lock in the price. This can avoid cost increases due to market fluctuations.
2. Learn to compare: Dont pin all your hopes on one freight forwarder. Look for several more and compare. You may find that the prices of some freight forwarders are so low that they surprise you.
3. Establish Long - term Cooperative Relationships: Establish a long - term cooperative relationship with a reliable freight forwarder. They are usually willing to offer you relatively favorable prices to maintain the long - term partnership.
4. Communicate more with customers: Especially when the customer designates a freight forwarder, be sure to clearly explain the specific composition of the costs to the customer to avoid unnecessary frictions due to cost issues later.

Summary

The bulk cargo warehousing fee at Shanghai Yangshan Port is indeed not low, especially when there is a large difference in fees among different freight forwarders, which is really a headache.But this is actually a common industry phenomenon, not limited to Yangshan Port. To effectively deal with this situation, the most important thing isto confirm the costs before shippingand try to communicate in detail with the freight forwarder and the customer to avoid additional cost problems later. After all, every cost in foreign trade business is a key factor directly affecting the companys profit.