Costs in International Trade

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In international trade, costs cover all expenses incurred in all processes from the production location of a product to its final destination. In the 2024–2025 period, these costs are reshaped due to geopolitical developments, energy prices and transformations in the logistics chain.

1. Freight (Transportation) Costs

Varies according to the type of transportation used in sea, air, land or rail transportation.

Fluctuates depending on the global supply-demand balance, fuel costs and port fees in container transportation.

In 2024, an increase in freight prices was observed, especially due to the Red Sea crises.

2. Insurance Costs

  • Insuring transported goods varies depending on the risk and value of the product being transported.
  • Political risks, war zones or routes with natural disaster risks increase insurance premiums.

    • 3. Customs Duties and Charges

  • Customs duties, VAT, anti-dumping duties collected by the importing country.
  • Some countries may reduce or eliminate these duties with FTAs ​​(Free Trade Agreements).