Transportation of goods internationally, transportation prices, and other costs
You can expand your business more easily through international trade, but once you have sold, you need to deliver. For profitability, you must get your products across quickly and cheaply to your customers. In order to conduct an international arrangement efficiently and in a cost-effective manner, a good method of transportation must be selected.
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The size and weight of your goods can affect the price. Additionally, you should consider the delivery service’s speed, the distance, and the destination. Small and high-value products can have different approaches than large and low-value products.
Type of goods and international transport costs
Choosing a mode of transportation heavily depends on the type of goods and the venture’s business requirements. In order to balance cost, quality, service, organization, and time, you should match the transport mode with your goods.
Transporting fresh goods (e.g. Fruits, vegetables, and fresh meat all require speed and time. These products should also be refrigerated when being transported.
In order to do business with animals, you must follow specific regulations and rules. Animal transport regulations and clearances should be followed to ensure safety and success. When you move dangerous items, you will be required to follow rigid procedures.
Modes of transport in international trade
Transportation methods used for international trade include road, sea, rail, and air. Each mode has its advantages, drawbacks, and conditions related to the types of goods being exported or imported. In some cases, more than one mode of transportation is required, or you may contact a freight forwarder to take care of logistics.
Cost of road transport
Compared to other modes of transportation, road transportation is the most flexible. You can track your goods, secure consignments, schedule the transport, and pay the fees relatively easily. global Cargo The downside of long distances is that they are inefficient when dealing with traffic. The possibility of your goods being damaged is also high in some countries due to high toll fees.
When it comes to large quantities, road transportation costs about 3 to 7 cents per meter per ton. In the event you decide to own your own trucks, you may have to pay around 1300 to 1900 USD per day, excluding driver. In the US, you would have to pay around 200 USD to send a package of 50 kg over a distance of 300 km.
Cost of sea container transport
It is cheaper to ship large volumes by sea than the other modes of transport. Similarly, shipping containers could be used for land transport as well. Due to slow speeds, weather shifts and inflexible routes and schedules, international transportation could be delayed. The following rates are typical for transport by sea container:
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 the prices from port to port. There may be additional costs associated with land transportation. There may also be higher rates for destinations experiencing civil wars.
Cost of rail transport
The mode of transport is eco-friendly and is popular on prosperous continents like Europe. The rail transport system, however, has rigid schedules and is sometimes delayed due to mechanical issues. Some remote regions don’t have a reliable rail system, which is a serious setback.
The cost of rail transportation varies from 2 to 6 US cents per ton per kilometer. Therefore, rail transport is cheaper than road transportation, in case a railway is available.
Cost of air transport
Transporting goods internationally by air is the most efficient means of delivery and distribution. Moreover, it is the safest method of transportation, which allows exports and imports of all sorts of goods.
A large part of the air transportation cost is determined by the weight and a small part by distance. When taking the rates of FedEx and UPS, you can expect 1 kg packages to cost about 30-50 USD to ship, 10 kg packages may cost 70-90 USD and 100 kg packages may cost over 400 USD. Prices may drop drastically if volume increases, and especially if you can guarantee a daily stream of packages that keep these carriers busy.
Customs regulations
Also, your goods must be labeled and accompanied by documentation for legal purposes. A crucial aspect of the export process is to identify the right HS code for your product, which will determine how customs handles it and also the import tariffs. There are different customs procedures and forms needed in different countries, for example, 4 documents will suffice to get your goods into Singapore, and ten documents will suffice in Thailand
Smooth business operations can be achieved by having a local distributor or agent who also handles imports.