Proportion of logistics costs in chemical manufacturing companies

The logistics cost rate of chemical manufacturing companies is about 12.3%, which is at a relatively high level in the industrial field and significantly higher than the level of similar industries in developed countries.
Structurally, logistics costs are mainly composed of the following parts:
Transportation cost: accounts for the highest proportion, reaching 67.1%, which is the main cost. As most chemicals are hazardous, special transportation requirements such as dedicated vehicles and GPS monitoring are required.
Management expenses: accounting for 15.5%, including expenses for logistics organization, coordination, information processing, etc.
Storage, packaging, distribution and other expenses: totaling about 17.4%, of which storage accounts for 3.5%, packaging accounts for 2%, and distribution accounts for 5.5%.
Interest expense: reflects the cost of inventory capital occupation, accounting for 4.9%.
It is worth noting that in recent years, the ratio has not decreased but increased, with a 1 percentage point increase in 2009 compared to the previous year, mainly driven by rising costs of management, warehousing, interest, and other expenses. Compared with the average logistics cost rate of 4.6% in developed countries such as Japan, there is still significant room for optimization in China's chemical manufacturing companies.
The core reasons for the high cost include:
Multiple miscellaneous expenses: The transportation of hazardous chemicals requires multiple permits, payment of urban construction fees, insurance premiums, and other additional expenses;
Repeated taxation: segmented taxation in various stages of logistics, resulting in a high comprehensive tax rate;
High transportation costs: Long distance, multimodal transportation, specialized vehicles, and safety monitoring drive up expenses.