Transport and distribution have an important role in international trade. Different international cargo transportation methods are necessary for companies to ensure their packages to be efficient and cost-effective. Overseas shipping Japan is one of the most popular international transportation methods when it comes to moving overseas. Other international transportation methods include road, rail, and air. So, there are four ways of import and export.
The definition of international transportation
International transportation is transportation between any place any place in the United States and any place in a foreign country; between places in the United States through a foreign country; or between places in one or more foreign countries through the United States.
The importance of transport in international trade lies in economic growth. Allowing production and consumption of products to occur at different locations is a key component of growth and globalization.
Criteria for selecting mode of transport
There are various factors that will influence company’s decision on which one of international transportation methods to use. These factors can be about business’ requirements, destination country, and the type of goods.
Modes of transport in international trade are road, sea, rail, and air. It is important for the company to consider what has to be distributed. This includes size, weight and which type of goods are transporting.
Destination, countries’ law, the value of goods, risk of transport are other elements to consider and depend on the company, country of destination and customers’ requirements. So, who wants to deal with international transportation has to balance quality, cost, time and conditions.
Type of goods
Your choice of international transportation methods is heavily dependent on your type of goods and the business requirements. You should match the transport mode with your goods to balance service, quality, cost, organization and time. For example, for the transportation of foods or fruits, speed is very important. So it’s very important to choose the shortest and quickest way.
If your business involves transporting of animals, you must adhere to specific rules and regulations. For all sorts of international transportation methods. There are guidelines and clearances to follow safe and successful animal transport. If your goods are considered dangerous, then you must follow the rigid procedures that entail when moving them.
International transportation methods: shipping by sea
Moving by sea is one of the most popular ways of cargo shipping modes. When it comes to moving overseas it is most appealing for people who are price conscious. And who value the safety of the delivery. The goods or cargo you are transporting by sea you can pack into boxes, cases, pallets, and barrels.
Transporting goods by sea has the following advantages:
- It is cheaper for volumetric and heavy load
- There is the absence of restrictions on the volume and weight of goods
- You can save time if departure and destinations points are close to sea port
If the business needs to transport large quantities but there is no pressure to deliver quickly, shipping by sea may be suitable.
Sea Transport advantages include:
- possibility to ship large volumes at low costs
- shipping containers can also be used for further transportation by road or rail
But, there are also risks for sea transport:
- shipping by sea can be slower than other transport systems and bad weather can add further delays
- routes and timetables are usually inflexible
- tracking the goods’ progress is difficult
- port duties and taxes
- further transportation overland might be needed to reach the final destination
- basic freight rates are subject to fuel and currency surcharges
If a company wants to transport goods by ship, they have to protect their shipment with an insurance.
For the shipping of dangerous goods, it’s necessary to complete a dangerous goods declaration.
Ships can transport anything. From clothing, technological gadgets and shoes to cars, raw materials such as iron or coal and even oils and chemicals.
Road transport for international trade
Road transport is the major modes of international transportation. It can be the most flexible option for international business. It is usually quick and efficient. Just like sea cargo transportation, land shipment can transport goods of almost any size. Using trucks to transport goods via land is the most common mean of transportation. Land shipment is good for bringing the goods to the persons’ house.
Road transport advantages:
- Low cost
- Extensive road networks
- Possibility to schedule transport and tracking the location of goods
- Safe and private delivery
Risks for road transport:
- long distances overland can take more time
- there can be traffic delays and breakdowns
- there is the risk of goods being damaged, especially over long distances
- toll charges are high in some countries
- different road and traffic regulations in some countries
You have a possibility to choose your own vehicles or carriers. Operating with own vehicles needs to consider licenses, fuel costs, regulations, driver training, and taxes.
Drivers of vehicles carrying dangerous goods must hold an ADR training certificate in handling dangerous goods. Goods defined as dangerous are: corrosive substances, explosive substances and articles, flammable liquids and solids, gases, oxidizing substances, radioactive substances and toxic substances.
Rail transport for international trade
Rail transport is a cost-effective and efficient way to move goods. Because It offers the following advantages: fast rail network throughout Europe. It is environmentally friendly compared with other transport systems.
Risks for rail transport:
- routes and timetables available can be inflexible, especially in remote regions
- can be more expensive than road transport
- mechanical failure or industrial action can disrupt services
- further transportation may need from a rail depot to the final destination, increasing costs and affecting delivery schedules
Air transport for international trade
This type of shipping offers a number of valuable advantages for international moving. It is ideal for long distance, and as it is the quickest method it also saves you time for when moving over a long distance. These services can also deliver almost anything except extremely big items that may not fit in the plane. This form of transportation is usually the most expensive as compared to the other International transportation methods.
Air transport offers numerous advantages for international trade, depending on the requirements. It can:
- deliver items quickly over long distances
- give high levels of security for sensitive items
- be used for a wide range of goods
However, there are the following risks:
- air transport can involve higher costs than other options and is not suitable for all goods
- flights are subject to delay or cancellation
- there are taxes to pay in each airport
- fuel and currency surcharges will usually be added to freight costs
- further transportation may need from the airport to the final destination
Any of the shipping modes of transportation is very important in today’s economy and society. Most shipping providers in today’s time also provide services such as tracking of the shipping item being delivered which allows the customer to know exactly where his or her items are. Shipping was, is and would always play a crucial role in the trading.