Shipping and World Trade

The low cost of transporting goods by sea

Between 2000 and 2007, the value of world trade grew 12%, whilst total freight costs during this period increased by around half this figure, demonstrating the falling unit costs of transportation, including those of ocean freight. In addition, analysis carried out by UNCTAD suggests that the ratio of the various freight costs to import values continues to decline, and that total freight costs in world trade still represent, on average, less than 6% of the import value (or shelf price) of consumer goods.

The low cost of maritime transport

Although the shipping industry has enjoyed record markets and freight rates in recent years, freight costs for consumer goods have historically represented only a small fraction of the shelf price, and continuous improvements in technology and efficiency have helped ensure maritime transport costs remain very competitive.

The transport cost element in the shelf price of goods varies from product to product, but is ultimately marginal. For example, transport costs account for only 2% of a television shelf price and only 1.2% of a kilo of coffee.