Warehousing is one of the concepts frequently encountered in international trade, e-commerce, and logistics operations. Warehousing costs directly impact operational profitability, particularly for companies involved in import-export activities and businesses dealing with storage and customs processes.
Warehousing refers to the process of storing goods involved in trade for a certain period of time before or after transportation, customs clearance or shipment. This storage process can take place in port areas, warehouses, depots, terminals or special storage areas.
Warehousing = temporary storage service
This service ensures that goods are stored safely, reduces the risk of damage, and enables operational planning to be carried out effectively.
How Does the Storage Process Work?
The storage process for a product generally consists of the following steps: First, the goods arrive at the port/terminal/warehouse area and are directed to designated areas. Then, registration and document checks are carried out to ensure the goods are registered in the system and the necessary documents are reviewed. Subsequently, the goods are placed in temporary storage areas. In the next stage, the necessary procedures are carried out to complete customs or shipping operations, and the legal processes are finalised. Finally, the goods are delivered to their owners or sent to their next destination through the delivery or exit process. During this period, the area occupied by the goods and the waiting time determine the storage cost. Storage fees increase as the storage period lengthens and the area used increases.
What is a Storage Room?
A storage room is a specialised area within commercial establishments or storage facilities where goods are temporarily kept. These rooms ensure that products are safely stored until customs procedures are completed, particularly during import and export operations. Warehousing services involve the storage of goods under professional conditions for a specific fee. The warehousing fee varies depending on the length of time the goods remain in storage, the type of product, and the storage conditions. This fee is calculated on a daily or monthly basis. These areas, also known as warehouses, play an important role in the logistics sector. Businesses utilise warehouses for stock management, demand fluctuations, or transport organisation. Modern warehouses are equipped with features such as temperature control, security systems, and inventory management.
Factors affecting storage fees
Factors affecting storage fees include storage duration, the type and characteristics of the goods. The size of the storage area and the square metres used play a decisive role in pricing. The location of the warehouse, products requiring special storage conditions, and insurance requirements are also factors that increase the cost. Additional services such as loading and unloading services, handling operations, and security measures directly affect storage fees. Seasonal demand fluctuations and storage capacity can also cause price fluctuations. The storage fee is determined by evaluating all these factors.
What is Storage Fee?
The storage fee refers to the charge paid for storage and holding services. It represents the total cost incurred as a result of the storage service. This cost is determined based on the time the goods spend in ports, customs areas or warehouses.
The calculation method is quite simple:
The calculation method is quite simple: Daily fee × Waiting time × Area/Capacity. This formula allows businesses to estimate the total cost in advance. Incorrect planning, customs delays or missing documents can significantly increase storage fees.
What is Demurrage? What is the Difference Between Demurrage and Storage?
Demurrage is a penalty charge incurred when a container or vessel remains on the carrier's equipment beyond the specified free period. A significant cost item in the logistics sector, demurrage is a common occurrence, particularly in import and export operations. The carrier company charges an additional fee when its equipment is not returned on time.
Although these two concepts are often confused, they have different meanings. When examined in terms of characteristics, storage space usage applies to demurrage, while carrier equipment usage applies to demurrage. In terms of space, storage applies in ports/warehouses/depots, while demurrage applies on containers/ships. In terms of purpose, storage provides a storage service, while demurrage is a penalty for delay. In both cases, the shipper is the one who pays. Both can occur simultaneously, which can double the cost.
Ways to Reduce Storage Costs
Customs delays are the biggest cause of storage costs, so prepare your documents in advance and speed up procedures. Secondly, keep track of free time periods and plan your free time – this way you can avoid extra charges. Thirdly, make a fast clearance plan and arrange transport and warehouse organisation in advance. The fourth strategy is to be careful when choosing a logistics partner, as working with a professional forwarder reduces costs. Increase efficiency by optimising storage. Speeding up container unloading reduces waiting time and minimises storage costs. By implementing these five key strategies, you can achieve significant savings and make your logistics processes more efficient.
Is a storeroom the same as a warehouse?
Warehousing and bonded warehousing are similar but distinct concepts. Warehousing refers to the fee paid for the short-term storage of goods. Bonded warehousing, on the other hand, is a physical warehouse where goods are stored under customs supervision. While taxes are deferred in bonded warehousing, warehousing is solely a storage service. Both are used in logistics processes but serve different purposes.
Is the storage fee the same in every port?
Storage fees are not the same at every port. Storage fees vary depending on the region where the port is located, the tariff set by the port operator, and the duration of storage. Container type, cargo type, and customs clearance procedures are also factors that affect fees. Private ports and state ports may apply different pricing policies.
Is the storage fee invoiced?
Storage fees are charges levied in exchange for storage services and must be invoiced. Pursuant to the VAT Law, invoicing is mandatory for storage services, which are considered service provision. Commercial enterprises must fulfil their legal obligations by invoicing the storage fees they receive in exchange for the storage services they provide.
Are warehouses only found in ports?
Storage fees are not only charged at ports, but also in many other locations. Airports, customs areas, warehouses and storage facilities also charge storage fees. Storage fees are also payable when goods are held at logistics centres, commercial warehouses and free zones.
