Whether you’re exporting handicrafts from Rajasthan, garments from Tiruppur or engineering parts from Pune, logistics costs can make or break your profitability. Yet many first-time exporters miss or underestimate critical cost heads — leading to pricing errors, reduced margins, or even loss-making shipments.

🧱What Are ‘Logistics Costs’ in Exporting?

These are all expenses involved in moving your goods from your location to your international buyer — including:

✅Transportation (inland & international) 

✅Port and terminal handling 

✅Customs clearance & documentation 

✅Warehousing & insurance 

✅Surcharges and penalties;

These costs occur both within India and at the destination country.

📦 Key Components of Export Logistics Costs

A. Inland Transportation 🛻(First Mile)

• Range: ₹5–₹15/km (based on distance, city, urgency)

• Scope: Factory to port or airport

• Pro Tip: Choose the nearest port:

  • Chennai Port – South India

  • JNPT (Nhava Sheva) – Maharashtra, Gujarat

  • Kolkata Port – Eastern India

B. Freight Charges ✈️ (Main Leg)

• Air Freight: ₹200–₹500/kg — faster but costlier

• Sea Freight: ₹5,000–₹50,000 per container — slower but cheaper

• LCL (Less than Container Load) is cheaper upfront but may have higher per-cubic-meter charges.

• FCL (Full Container Load) is more economical if volume is large.

C. Port & Terminal Handling Charges 🏗️ (THC)

• Includes loading/unloading, crane, gate charges

• Range: ₹3,000–₹10,000

• Note: Often excluded in freight quotes. Ask specifically.

D. Customs Clearance Fees 🧾

• Paid to your CHA (Custom House Agent)

• Range: ₹2,000–₹10,000

• Depends on product type and complexity of documents

E. Documentation Charges 📑

Typical docs include:

• Bill of Lading or Airway Bill

• Packing List & Commercial Invoice

• Certificate of Origin

• Insurance & FSSAI (if applicable)

• Range: ₹1,000–₹3,000

F. Container Costs & Warehousing🏠

• Detention Charges: Delay in returning container

• Demurrage Charges: Delay in clearing from port

• Tip: Ensure timely movement to avoid daily penalty fees

G. Insurance 🔐

• Optional but strongly recommended

• Covers damage, theft, loss

• Cost: 0.5%–1% of invoice value

🚨Hidden or Unexpected Costs to Watch

📊Sample Cost Estimation

➡️ That's nearly 7% of total invoice value. Delays, air freight, or long-distance destinations can push it to 15–20%.

💡How to Reduce Your Logistics Costs

✅Get 2–3 quotes from freight forwarders (try Cogoport, Freightwalla) 

✅Avoid peak-season surcharges by shipping off-season 

✅Combine multiple orders into one shipment (if possible) 

✅Submit complete and accurate documentation to avoid clearance delays

🛠️Final Tips for First-Time Exporters

• Ask for itemized freight quotes — don’t accept vague “all-inclusive” figures

• Use shipment tracking tools for transparency

• Build a buffer margin in pricing to accommodate fluctuations

• Network with local exporters in your region to pool containers or share learnings

💬 Want to Learn from Other Indian Exporters? Start a thread at Manthan

• Ask questions about your specific product

• Share freight quotes from your city

• Get recommendations for CHAs and forwarders

TL;DR

Logistics = 7–20% of your export invoice. Know the cost heads, avoid surprises, and compare quotes before shipping.