The Common Factors That Determine The Cost Of FIBC Big Bags
When choosing a FIBC big bag supplier, many factors will enter the decision-making process, including price. There are many factors that affect the price of your bag, but how do these factors affect the price of each bag? Prices may change every month, and these are the 4 biggest factors that contribute to this situation.
1) Raw material cost (resin)
Most of the raw material used to produce FIBC is polypropylene, which is a thermoplastic. This means that it can be melted to become flexible and then cooled to return to a solid state. Like most raw materials and commodities, polypropylene resin prices fluctuate, and the price that manufacturers pay in one month is most likely to be different in the next month.
Since the price of polypropylene resin fluctuates daily, weekly, and monthly, this is a factor that causes the price of the big bags you buy to fluctuate.
2) Labor cost (manufacturing)
Nowadays, we live in an automated world. In many industries, robots will take on a lot of heavy work when manufacturing products. When it comes to FIBC big bags, this is not the case. Until today, you can still sew bulk big bags by hand, and most of the sewing is done by hand.
India and China are the two main producers of bulk bags, producing millions of bags each year. With the increase in labor costs in these developing countries, the cost of bags has increased in the past few years, especially with the increase in popularity and product adoption.
3) Freight (ship the luggage to worldwide countries)
Freight is an important determinant of the price you pay for each bag. Every big bag produced overseas takes a long journey to be shipped to your factory. Only a few transportation companies have the ability to transport a large number of products on a global scale, and there is little room for negotiation.
Once your bags arrives in your countries and is transported through customs, it is usually by train to the destination city, and then by truck to the buyer’s factory, unless it is shipped directly to the final consumer (some customer orders are dealing with in this way ). As you can see, there are many touch points, and there are many transporters/shippers to deliver the big bags to the final destination, so the cost of the suitcase is also calculated.
4) Exchange rate (USD exchange rate)
The currency of choice for international business/trade is the US dollar. Naturally, the U.S. dollar fluctuates daily, monthly, and annually, and may affect global purchasing power.
Among the 4 main factors that increase the price of your bulk bags, this is the most uncontrollable factor, which may cause the price of your bulk bags to rise.
