This chapter explore why it is so important to study transportation costs in the context of Asia. Which has a higher incidence on trade in Asia-tariffs or freight costs? Since international transport costs, to a great extent, depend on ocean freight rates, the next step is to understand the relative importance of ocean freight rates in trade in Asia. The chapter also provides an illustration of the trends in such rates in selected Asian countries, leading into estimates of freight costs across countries and commodities.
