Comparison of First Mile Cost Structure Across Major Markets (2024)

First Mile Cost Components

First mile logistics costs typically include the following major parts:

• Transportation Fees: Inland transport from factory or warehouse to export port/airport, plus international sea/air/land freight.
• Customs Clearance Fees: Export and import customs declaration, inspection, documentation, etc.
• Warehousing Fees: Temporary storage, sorting, container loading at origin warehouse.
• Insurance Fees: Cargo transport insurance covering loss or damage.
• Others: Packaging, labeling, inspection, contingency fees, etc.

Cost Structure Comparison Across Markets

The stacked chart below illustrates the cost composition for four scenarios (based on 2024 industry estimates):

• China Export: Transport accounts for the highest share (~55%), followed by customs clearance (15%) and warehousing (12%), with insurance lower (5%).
• Southeast Asia Local: Transport ~45%, customs clearance higher (20%), warehousing (18%), insurance (7%).
• Europe Import: Transport 50%, customs 12%, warehousing 20%, insurance 8%, others 10%.
• US Import: Transport 48%, customs 10%, warehousing 22%, insurance 10%, others 10%.

Key Insights

• China export has the highest transport share due to long-haul international shipping.
• Southeast Asia shows distinctly higher customs clearance costs, reflecting local clearance efficiency and hidden fees.
• European and US markets have higher warehousing and insurance shares, indicating mature market emphasis on compliance and risk coverage.
• Enterprises should adjust first-mile strategies per target market: e.g., budget more for customs in SEA, and consider warehousing costs in Europe/US.