A cost analysis chart

What Determines the Cost of a Bonded Warehouse?

"How much per square metre?" has no single answer. We set out the items that make up the price one by one.

Warehousing and Customs 3 min read

Three variables determine the warehouse charge: the type of goods, the area or tonnage they occupy, and the length of stay. A price given without knowing these three is not binding.

Handling, loading and unloading and any additional operation charges are added to that. A serious quotation shows these items separately; a quotation that gives a single total without opening it up produces surprises later.

Cost items

Items you should see in the quotation
StoragePer m² or per tonne, by period
Loading / unloadingPer vehicle or per container
HandlingPer operation (sorting, labelling, packing)
Weighing and countingPer operation or per consignment
Paperwork and reportingUsually included in the service
InsuranceThe operator's policy / additional cover

Why the type of goods changes the price

Steel coil sits in a floor stack and is heavy; boxed goods go on racks and take up volume. The same square metre means a different workload and a different risk for two products.

Products sensitive to moisture, impact or fire also need extra protection, and that is reflected in the cost.

Time and total cost

The storage charge is directly proportional to time. But the charge is not the only figure to look at when deciding on a warehouse.

Set against it the cash advantage the deferred duty provides. On high-tonnage steel the deferral is usually larger than the storage charge.

How location affects cost

A warehouse with a low unit storage price but a distant location can take that difference back in road haulage. When you calculate total cost, add the distance from the port/rolling mill to the warehouse and from the warehouse to the buyer.

This is where the advantage of a location close to a production and port centre, such as the Gulf of İskenderun, shows itself.

Frequently Asked Questions

Questions About This Page

Why is there no price list online?

Because the price depends on three variables: type, volume/tonnage and duration. A figure given without them would not be binding and would be misleading.

Is there a minimum tonnage requirement?

It varies from operator to operator. Some apply a lower limit and some do not; state your volume clearly when asking for a quotation.

Is there a discount for long-term storage?

Pricing is usually set by period and a long term is open to negotiation. Discuss it at the contract stage.

Besides the storage fee, what else can appear on the invoice?

Storage is rarely the only line on the invoice; loading and unloading, handling operations such as labelling, and insurance can be priced separately. Customs brokerage is usually the subject of a separate agreement. When you compare quotations, ask item by item which operations are included in the price and which are not.

What happens to the period fee if I withdraw the goods earlier than planned?

It depends on how the billing period is defined in your contract; there is no single rule that applies everywhere. Some contracts count a period that has started in full, others calculate it pro rata. Settle this in writing at the quotation stage instead of leaving it as a detail to discuss later.

Is a warehouse close to the port worth it when its rate is higher?

The decision is made on total door-to-door cost, not on the square-metre rate. A warehouse near the port or the border gate may charge more per unit, yet the shorter haulage distance, the smaller number of transfers and the days saved can bring the total down. Calculate both options together with transport and handling.

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Do you need help with this?

Tell us about your cargo or your product requirement and we will talk through how what this article describes applies to your own case.