Pricing method for international shipping

Cost-oriented pricing method (Cost-oriented Pricing): It is mainly based on the cost of shipping companies to set international shipping rates or rental rates. The freight rate or rental rate established by this method ensures that the company can compensate all the expenses, recover all the invested funds and obtain a reasonable profit; and it is also easy to be accepted by the shipping consignor or the lessee because of the simple calculation and fairness. ; It is also conducive to promoting various shipping companies to try to compete with each other through legitimate means such as reducing costs and improving service quality.
The key to the cost-oriented pricing method is obviously to accurately calculate the total transportation cost and total transportation volume, and then calculate the unit transportation cost, and then increase a certain percentage of profit on the basis of the unit cost, and finally get the freight rate or rent. Rate.
The composition of the total cost of ship transportation varies slightly due to different types of ships and different navigation areas. For ships such as container ships and ro-ro ships, in addition to the total cost components of the ship, box fees (including box depreciation fees, rental box fees, storage fees, repair fees, etc.) should also be included; local inland waterway ships also pay There should be a river maintenance fee; the ships of a shipping company with a freezing period should also have a winter sleeping fee.
The composition of the total cost of ships operated by the owner of the ship and the taxi operated by others are also different. The latter does not include variable costs that consist of fuel oil costs and port charges. This is because the charterer is responsible for these costs of the time charter, and the owner of the chartered ship is only responsible for the fixed costs of the ship. According to the minimum rental rate established by this, the international shipping industry is called Hire BaBase (H/B), which is often translated as the basic rental price or cost benchmark in China. Its exact meaning refers to the average fixed cost of the first deadweight ton of a time charter ship in one month, that is, the minimum rental rate (yuan/ton) that the owner should master when chartering the ship. At this time, a certain profit ratio has not been considered, and its expression is shown in equation (2-4). K in the formula is the fixed shipping cost per day of operation of the ship (yuan/day). The fixed cost of bareboat charter does not include crew salaries and surcharges.
H/B=K solid/DW×30 (yuan/ton) (2-4)
International shipping rates or rents formulated on a cost-oriented basis were considered the most reasonable pricing method in the era of planned economy. However, it does not conform to the actual operating conditions of Taiwan's market economy; and when calculating various expenses, it is usually difficult to reflect the future cost situation based on past and current statistical data; it is also difficult to grasp reasonable standards when determining a reasonable profit ratio. , Lack of sufficient evidence.
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