Transportation Expenses

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Freight Expenses

Domestic/Inland Freight

Rail Transportation

Taiwan Railways Administration (TRA) and Taiwan High Speed Rail (THSR) are the main railtransportation service providers in Taiwan. TRA primarily provides passenger services, as well as container and cargo services.

Minimun Charges for Truck-Loaded Shipping

Unit: NT$

  
General Cargo 675
Container 1,910
Valuables 3,255
Gun Powder 1,335

An additional 20% will be charged for designated trains based on applicable rates; a base charge of NTD 7,760will apply the chartered train.

Source: TRA, September 2013

Cargo Costs and Incidentals Summary

Unit: NT$
Basic Rate (Tons/Km) Station Cost (Tons) Main Cargo
1.55 14.45 Tobacco, alcohol, gunpowder, generally flammable liquids and flammable solids, acids, oxidation inhibitors, volatile drugs, benzene, high-pressure gas, guns, cannons, rockets, electronic products and waste
1.17 11.01 Cement, cement clinkers, mineral oil, coal, machine, rubber, plastics, food, gravel, limestone, grains, fertilizer, salt, bottles, wooden products, clay, agriculture produce, aquatic products, livestock production and vehicles

Source: TRA, September 2013

Trucking

Generally, freight expenses cannot exceed NT$7.40/Ton-kilometer. According to the Enforcement Rules of Freight Forwarders Operations, container shipping expenses plus additional charges may not exceed one-half of the entire truck expense. Less-than-carload lot expense, plus additional charges, may not exceed 40% of the entire truck expense.

Transportation by truck is mainly used for parcels and packages. Inland freight prices vary according to the size and weight of the goods; transportation in the same city is generally less expensive. The following are the average domestic freight prices:

From Taipei

Unit: NT$
Destination Weight (Kg)
10 20 30 40 50
Taipei 100 100 100 100 100
Taoyuan 100 100 100 100 100
Hsinchu 105 105 105 105 105
Taichung 130 130 130 130 148
Tainan 180 180 180 180 220
Kaohsiung 185 185 185 188 235
Destination Weight (Kg)
60 70 80 90 100
Taipei 100 100 108 122 135
Taoyuan 100 100 108 122 135
Hsinchu 123 144 164 185 205
Taichung 177 207 236 266 295
Tainan 264 308 352 396 440
Kaohsiung 282 329 376 423 470

Container Transportation

Destination: Keelung Port

Unit: NT$
From 20’,40’
Taipei City 5,000
New Taipei City 6,000
Hsinchu City 9,300
Taichung City 12,000
Tainan City 19,000
Kaohsiung City 21,000

Source: Deloitte & Touche survey, July 2013

Destination: Taichung Port

Unit: NT$
From 20’,40’
Taipei City 14,800
New Taipei City 13,800
Hsinchu City 10,300
Taichung City 6,800
Tainan City 12,500
Kaohsiung City 14,500

Source: Deloitte & Touche survey, July 2013

Destination: Kaohsiung Port

Unit: NT$
From 20’,40’
Taipei City 22,000
New Taipei City 21,000
Hsinchu City 17,500
Taichung City 14,000
Tainan City 8,000
Kaohsiung City 6,000

Source: Deloitte & Touche survey, July 2013

International Shipping Expenses

Marine Transport

There are four major international harbors in Taiwan: Keelung, Suao, Taichung, Kaohsiung, and Hualien, which are located in northern, central, southern, and eastern Taiwan, respectively. Transportation costs vary according to the size, content, and destination of the container. The following are benchmark international container shipping costs:

From Keelung Port

Unit: US$
Destination 20’ 40’ 40’ HQ
U.S. West Coast San Francisco 1,840 2,000 2,225
Los Angeles 1,840 2,000 2,225
Oakland 1,840 2,000 2,225
Seattle 1,840 2,000 2,225
Atlanta 3,920 4,600 5,150
U.S. East Coast New York 3,120 3,600 4,025
Memphis 3,280 3,800 4,250
Kansas 3,360 3,900 4,365
Houston 3,280 3,800 4,250
Boston 4,120 4,600 5,150
Norfolk 3,600 4,200 4,700
Philadelphia 3,840 4,500 5,040
Miami 4,160 4,900 5,490
Europe Rotterdam 2,450 4,600 4,850
Hamburg 2,450 4,600 4,850
Frankfurt 3,250 5,400 5,650
Antwerp 2,450 4,600 4,850
London 3,250 5,400 5,650
Amsterdam 2,750 4,900 5,150
Asia Hong Kong 80 100 100
Bangkok 200 400 400
Singapore 300 650 650
Tokyo 300 600 600
Busan 150 300 300
Osaka 300 600 600
Yokohama 300 600 600
From Taichung Port

Unit: US$
Destination 20’ 40’ 40’ HQ
U.S. West Coast San Francisco 1,740 1,900 2,125
Los Angeles   1,900 2,125
Oakland 1,740 1,900 2,125
Seattle 1,740 1,900 2,125
Atlanta 3,820 4,500 5,050
U.S. East Coast New York 3,020 3,500 3,925
Memphis 3,180 3,700 4,150
Kansas 3,260 3,800 4,265
Houston 3,180 3,700 4,150
Boston 4,020 4,500 5,050
Norfolk 3,500 4,100 4,600
Philadelphia 3,740 4,400 4,940
Miami 4,060 4,800 5,390
Europe Rotterdam 2,450 4,600 4,850
Hamburg 2,450 4,600 4,850
Frankfurt 3,250 5,400 5,650
Antwerp 2,450 4,600 4,850
London 3,250 5,400 5,650
Amsterdam 2,750 4,900 5,150
Asia Hong Kong 80 100 100
Bangkok 200 400 400
Singapore 300 650 650
Tokyo 300 600 600
Busan 150 300 300
Osaka 300 600 600
Yokohama 300 600 600
From Kaohsiung Port

Unit: US$
Destination 20’ 40’ 40’ HQ
U.S. West Coast San Francisco 1,440 1,800 2,025
Los Angeles 1,440 1,800 2,025
Oakland 1,440 1,800 2,025
Seattle 1,440 1,800 2,025
Atlanta 3,520 4,400 4,950
U.S. East Coast New York 2,720 3,400 3,825
Memphis 2,880 3,600 4,050
Kansas 2,960 3,700 4,165
Houston 2,880 3,600 4,050
Boston 3,720 4,400 4,950
Norfolk 3,200 4,000 4,500
Philadelphia 3,440 4,300 4,840
Miami 3,760 4,700 5,290
Europe Rotterdam 2,250 4,400 4,650
Hamburg 2,250 4,400 4,650
Frankfurt 3,050 5,200 5,450
Antwerp 2,250 4,400 4,650
London 3,050 5,200 5,450
Amsterdam 2,550 4,700 4,950
Asia Hong Kong 80 100 100
Bangkok 200 400 400
Singapore 300 650 650
Tokyo 300 600 600
Busan 150 300 300
Osaka 300 600 600
Yokohama 300 600 600

Air Freight Expenses

Air freight costs vary according to the weight, classification, and destination of the goods. The following are benchmark air freight costs for documents and packages to and from Taiwan:

Unit: US$
Country Documents Packages
500g 1Kg 10 Kg/0.5 m3 45 Kg/1 m3
China 14-20 19-25 379-385 666-672
Hong Kong 12-19 18-24 269-383 489-684
Singapore 12-19 18-24 269-383 489-684
Japan 14-20 19-25 280-385 509-672
South Korea 12-19 18-24 269-383 489-684
Malaysia 14-20 19-25 280-385 509-672
Philippines 14-20 19-25 280-385 509-672
Indonesia 14-20 19-25 280-385 509-672
Thailand 14-20 19-25 280-385 509-672
United States 25-37 32-44 846-858 1,619-1,632
Canada 25-37 32-44 846-858 1,619-1,632
Australia 21-33 28-41 657-669 1,187-1,199
New Zealand 21-33 28-41 657-669 1,187-1,199
United Kingdom 26-38 37-49 482-737 926-1,130
France 26-38 37-49 482-737 926-1,130
Germany 26-38 37-49 482-737 926-1,130
Spain 26-38 37-49 482-737 926-1,130
Italy 26-38 37-49 482-737 926-1,130
Netherlands 26-38 37-49 482-737 926-1,130
Belgium 26-38 37-49 482-737 926-1,130
Austria 27-39 41-53 496956 955-1,643

Logistics Centers

The Taiwan government has focused intensely on developing the island’s economy, with demonstrable results. The success of the government’s initiatives has brought prosperity and enhanced the country’s international status. The secret to this success is Taiwan’s ability to keep pace with the global economy and to fashion a stage-by-stage outward-looking developmental strategy, which has enabled Taiwan to play to its full comparative advantages.

The government encourages businesses to make full of use Taiwan’s strategic geographic location in the Asia-Pacific region and in cross-Straits relations to maximize economic strengths, expand economic horizons, and reach a new plateau of development. A number of incentives are available for setting up a logistics center.

Registered Logistic Center

There are currently 19 registered logistics centers in Taiwan:

Name Government Authorities
CTW Logistics Corp. Taoyuan Global Logistics Center Taipei Customs Office
CTW Logistics Corp. Taoyuan International Airport Logistics Center
Jvan An International Company, Ltd. Logistics Center
Amigo Logistics Corporation Logistics Center
Goldsun Express & Logistics Co., Ltd. Logistics Center
Trust Logistics Corp. Logistics Center
Formosan Rubber Group Inc. Logistics Center
UPS Supply Chain Solution (Taiwan) Co., Ltd. Logistics Center
Science Park Logistics Co., Ltd. Hsinchu Science Park Logistics Center
Yusen Logistics (Taiwan), Inc. Logistics Center
Kintetsu Would Express (Taiwan), Inc. Logistics Center
ViewSonic Corp. Logistics Center
Everteminal Co., Ltd. Logistics Center
Central Taiwan Science Park Logistics Co., Ltd Logistics Center Taichung Customs Office
Yes Logistics Corp, Kaohsiung Logistics Center Kaohsiung Customs Office
Science Park Logistics Co., Ltd. Logistics Center
Chimei Logistics Corp. Logistics Center
J.Shine International Logistics Co., Ltd. Logistics Center
CTW Logistics Corp. Kaohsiung Logistics Center

Source: Customs Administration,July 2013

Services Performed by Logistics Centers

Customs Clearance
  • Outbound customs for quota goods
  • Express customs clearance for international logistics
  • Monthly customs reports for bonded goods
  • General inbound and outbound customs
Transportation and Distribution
  • Container transportation
  • General truck transportation
  • Transportation of bonded goods
  • Transportation of hazardous goods
  • Air-SUS tractor and A/C container transportation of delicate instruments and art
  • Transportation of over-length, over-width, and over-height goods
  • Distribution and delivery
Handling
  • Goods determination and acceptance
  • Pickup
  • Labeling
  • Packaging
  • Reworking
Warehousing
  • Bonded goods warehousing
  • General warehousing
  • Chemical goods warehousing
  • A/C controlled warehousing
Value-Added Services
  • After-sales services
  • Repair and maintenance
  • Testing
  • Substitute payment collection for customers
  • Substitute purchasing service for customers
  • Assembling
  • Changing and reconstructing
Packaging
  • Wood case design and production
  • Wood case packaging
  • Vacuum packaging
  • Packaging of machines and delicate instruments for export
  • Pallet making
  • Complete packaging tape supplies
  • International moving
Physical Documentation and Digital Data Management
  • Digital data storage
  • Physical documentation storage
  • Storage of other items
  • Home goods storage
  • Industrial and business document storage
  • Seasonal goods storage
Third Party Logistics (3PL) Professional Services
  • Performance for outsourcing
  • Long-term logistics solutions
  • Total logistics solutions
  • Logistics consulting
  • Logistics solutions and services for individual projects

Source: Deloitte & Touche survey, July 2013

Costs

There are many factors that affect the actual cost, such as the nature and quantity of the goods, the period of warehousing, the size of the order, the frequency of import/export, etc. There is no standardized market price for bonded logistic warehouses; however, the following table shows typical charges for logistics warehouses:

Unit: NT$/per month
Item Description Unit
  • Destination Charge
 Terminal handling charge for FCL shipment Per 20F
Per 40F
  • Customs Brokerage
 Inbound customs brokerage fee FCL shipment, per 20F/per 40F
  • Trucking/ Drayage
 Drayage to warehouse for FCL shipment Per trip
  • Warehousing (non-tempera-ture controlled)
 Devanning charge of palletized shipment Per 20F
Per 40F
Inbound handling charge  
Outbound handling charge Per pallet
Storage charge Per pallet, per day, Per ping
  • Outward Charge
 Depending on capacity of truck Per trip
  • Optional Charge
 Generating and affixing of labels on shipment packages Case by case

Source: Deloitte & Touche survey, July 2013

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