PART V: PRICING AND RELATED INFORMATION
FACTORS AFFECTING PRICES
Transportation Costs to the U.S. Market
Transportation costs for CFS paper shipped from China to the United States averaged 16.7 percent of the customs value during 2005. Transportation costs for CFS paper shipped from Indonesia to the United States averaged 19.8 percent of the customs value during 2005. Transportation costs for CFS paper shipped from Korea to the United States averaged 16.2 percent of the customs value during 2005. These estimates are derived from official Commerce statistics. 1
U.S. Inland Transportation Costs
Transportation costs on U.S. inland shipments of CFS paper generally account for a small to moderate share of the delivered price of these products. For U.S. producers, reported costs ranged from 3 percent to 10 percent of the delivered price. For importers from China, Indonesia, and Korea, the costs ranged from 1 percent to 10 percent of the delivered price.2
Nominal and real exchange rate data for Indonesia and Korea are presented on a quarterly basis in figure V-1.3 The nominal exchange rate for the Chinese yuan relative to the U.S. dollar remained stable during most of this period, with some appreciation (3.3 percent) of the Chinese yuan against the U.S. dollar starting in the last half of 2005 as the Chinese government altered its exchange rate policy. The data show that the nominal exchange rate of the Indonesian rupiah remained relatively stable relative to the U.S. dollar, while the real exchange rate of the rupiah appreciated moderately over the period. The data show that the nominal exchange and real exchange rates of the Korean won appreciated relative to the U.S. dollar over the period, with the nominal value appreciating by 25.9 percent and the real value appreciating by 17.1 percent.
1 The estimated cost was obtained by subtracting the customs value from the c.i.f. value of the imports for 2005 and then dividing by the customs value. This calculation used import data on HTS statistical subheadings 4810.13, 4810.14, and 4810.19.
Three importers reported that their purchasers pay for U.S. inland transportation costs.
3 Real exchange rates are calculated by adjusting the nominal rates for movements in producer prices in the United States and each of the subject countries.