Trade internationally is an excellent way to expand your business, but after you make the sales there is delivery to take care of. Customer satisfaction is essential for your business, and achieving your financial objectives means getting your products to customers quickly and affordably. To ensure a cost-effective international arrangement, the right means of transport must be selected.
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You should pay attention to the weight and size of your goods. Also consider the speed of the delivery service, the distance, and the destination of the goods. A small, high-value product may require a different approach than a large, low-value one.
Type of goods and international transport costs
There is a big difference between the type of goods you send and your business' needs. To balance service, quality, cost, organization, and time, you should match the transport mode with your goods.
Cargo Center Transporting fresh goods (e.g. Speed and time are necessary when handling fresh fruits, vegetables, or meat. The transport of these products should also consider refrigeration.
Having a business that involves the transport of animals requires careful attention to specific rules. It is important to follow guidelines and clearances for a successful and safe animal transport. When you move dangerous goods, you must follow the rigid procedures that come with them.
Modes of transport in international trade
Four main modes of international transport exist: road, sea, rail, and air. Each mode has its advantages, drawbacks, and conditions related to the types of goods being exported or imported. Sometimes, more than one mode of transportation is needed, or you may need the assistance of a freight forwarder.
Cost of road transport
In comparison with the other three modes, road transportation is more flexible. There is a relative ease in tracking your goods, securing consignments, scheduling transports and paying fees. Long distances are inefficient, especially when traffic is involved. A few countries may charge high toll fees and the possibility of goods being damaged is very high.
When it comes to large amounts, road transportation costs between 3 and 7 US cents per ton per kilometer. You can expect to pay around 1300 USD to 1900 USD per day for owning your own truck, excluding the driver. It costs about 200 USD to send a package of 50 kg over a distance of 300 km in the US.
Cost of sea container transport
Shipping by sea is a cost-effective option for shipping large volumes compared to the other modes. Land transport of goods can also be done using shipping containers. There may be delays to international transport, however, due to the slow pace, weather shifts, and rigid schedules and routes. The usual rates for shipping containers by sea are:
Route20 ft container40 ft container
USA-Canada600-800 USD900-1100 USD
USA-China1600-1800 USD2400-2700 USD
UK-Spain700-900 USD1100-1300 USD
UK-Australia2500-2800 USD4000-4500 USD
Note that these are port-to-port costs. It may be necessary to pay extra for land transportation. Civil war-torn countries may also have higher rates.
Cost of rail transport
Environment-friendly, it is frequently used in prosperous continents like Europe. Railways have rigid schedules, and mechanical failures may delay them. Remote regions do not have a great rail network, which is a significant disadvantage.
Rail transportation costs range from 2 to 6 cents per ton per kilometer. When a railway is available, rail can be a cheaper alternative to road transportation.
Cost of air transport
In international trade, air transport is the fastest way to ensure product delivery and distribution. Additionally, this is a very safe method of transport, and you can export and import a variety of goods using it.
A large part of the air transportation cost is determined by the weight and a small part by distance. Taking rates of Fedex and UPS, a package of 1 kg will cost 30 to 50 USD to ship, a package of 10 kg will cost 70 to 90 USD and a package of 100 kg will cost over 400 USD. Especially if a steady stream of packages is guaranteed to keep these airlines' aircraft occupied, prices can decline dramatically.
Customs regulations
Legally, your goods must also be labelled and documents must be attached. It is extremely important to classify your products under the correct HS code, as this determines how customs handles them, as well as the import tariffs. The customs procedure and the number of required forms vary depending on the country: to cross the border into Singapore, you need four documents; in Thailand, you will need ten
It may be essential for smooth business operations to work with a local agent or distributor who also coordinates the importation.
