Logistics transportation costs are affected by many factors and cannot be generalized. Specific to the question of why the transnational transportation from China to Pakistan is not cheap, Xiaoyi only gives a certain analysis from a personal subjective point of view, mainly including four points:

The first is tariffs: Pakistan's import and export tariffs are relatively high, which directly increases the cost of logistics and transportation. According to the "Doing Business 2022" report released by the World Bank, the average import tariff rate in Pakistan is 10.1%, and the average export tariff rate is 7.8%. Studies have shown that taxes and fees have a significant impact on logistics and transportation costs. For example, a study of ASEAN countries found that higher taxes lead to an increase in logistics and transportation costs by about 1.6%.

The second is the impact of backward infrastructure: Pakistan's infrastructure is relatively weak, including ports, railways, roads and airports, etc. The inadequacy of these facilities leads to low efficiency and high costs of logistics transportation, especially when it comes to services such as door-to-door fixed-point delivery greatly increased transportation costs.

Then there are government policies: the Pakistani government has relatively strict supervision on the logistics industry, and the procedures for approval and inspection of import and export goods are relatively cumbersome, which may increase the cost and time of logistics transportation.

Finally, there are security issues: Instability and political risks in parts of Pakistan lead to disruptions in logistics or security issues, which increases the cost of insurance and security measures.

Of course, factors such as transportation volume, labor costs, market competition, and geographical location are also one of the factors that affect logistics transportation costs. What needs to be reminded is that foreign trade partners should pay more attention to the guarantee of shipping partners while paying attention to the transportation price and cost of Pakistan. Xiaoyi has been cultivating this special line of China-Pakistan freight forwarder for 19 years, and it is all right!

Pakistan transportation cost|International logistics transportation|China-Pakistan logistics|China-Pakistan freight forwarding