Shipping Cost Economics
The cluster centers on discussions about the low costs and high efficiency of international sea shipping via containers compared to air, land, or domestic transport, explaining why overseas manufacturing and global trade remain economical.
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It’s almost as if it costs money to transport goods or something.
My guess is that's cheaper to ship via containers (over sea).
If it's not cheaper than overseas shipping or cargo aircraft, it won't work. It's basic economics.
Well yeah, the stuff is probably being sent over on a container ship. Have you ever tried shipping something by airmail from a faraway country to the US? It would cost way more than the value of the actual product.
I don't see why it should increase the costs of shipping. Can you outline a plausible mechanism?
Perhaps shipping simply produces more value for you than it does for them?
Many small shipments across the ocean are costlier than one large shipment which is then distributed locally. USPS (and other national postal services across the world) will need to increase the prices for those small shipments and make profit out of it. I can only guess that in addition to this huge quantity discounts the shipments are subsidized by the Chinese government to accelerate export. US and other countries should learn from them...
People significantly overestimate how expensive shipping by sea costs. Much less valuable goods than batteries get shipped across the entire Pacific Ocean. Think of all those cheap junk toys from China, for example. If those can be shipped profitably, then batteries for $30k+ cars absolutely can be!
It is not that viable to be fair.The costs of shipping is killer.
I think it is. Of course there's going to be shipping. Moving things around isn't free.