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Freight Charges and Dynamics of Trade Over Long Distance

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Discuss how freight charges change the dynamics of trade over long distances. Research at least two companies that have tried to increase sales by revising freight charges

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Discuss how freight charges change the dynamics of trade over long distances. Research at least two companies that have tried to increase sales by revising freight charges.

Freight charges change the dynamics of trade over long distances. The freight charges depend on the type of cargo, the mode of transport, the weight of the cargo and the distance to the delivery destination. When heavy goods are to be transported to long distances the freight charges become an important component of the price. This is true especially if the value of the goods traded is not very high. If the freight charges are high it may not be competitive to sell the product over long distance. On the other hand if freight reductions can be availed of the prices of these products become competitive and trade in ...

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