Transportation and Logistics
Logistics deals with the packaging of goods, cataloging and handling them, and also with the inward and outward transportation of goods from its manufacturer to the consumer. While transportation refers to the movement of good from one place to another. Logistics is not limited to the delivery of goods like transportation, it also involves taking care of storage, packaging, inventory, etc.
The fastest way to transport goods is through air freight. The express shipping options of air freight make it possible to send goods anywhere in the world in the shortest time. It is also a very secure way of transporting goods because of strict security policies at airports. A disadvantage of this freight method is that it costs more than ocean and road freights.
Ocean freight transport refers to the shipment of goods by sea in shipping containers. Approximately 90% of goods are transported through ocean freight globally making it one of the most common form of transport. Ocean freight is the most cost effective shipping medium which in return allows traders to provide competitive prices to their consumers. Shipping is often the only way through which big and heavy items can be transported overseas. It is an environment friendly cargo transport method so it helps in building brand reputation.
Different Types of Ships in World Fleets
According to a consensus in 2018, the total number of ships in the world exceeds 50,000. The ships can be separated into five different categories: container ships, bulk carriers, tankers, ferries and cruise ships, and specialist ships.
· Container Ships- these ships carry manufactured goods and products from around the world, usually via scheduled liner services.
· Bulk Carriers- these ships transport raw materials such as iron ore and coal. They can be identified from the hatches that cover the large cargo holds.
· Tankers- these ships transport crude oil, chemicals and petroleum products. They look similar to bulk carriers however, their deck is covered by oil pipelines and vents instead of the raised hatches.
· Ferries and Cruise Ships- ferries are used for performing short journeys for passengers, cars and commercial vehicles. Cruise ships are larger than ferries and are used for longer journeys.
· Specialist Ships- these are used as vessels for offshore oil industries, ice breakers, etc.
International ports are free ports where trade can be conducted with lenient customs regulations as agreements regarding trade have already been made between the concerned countries. Ports across the world have different trading policies but international ports allow traders to perform trades without the hassle of extra paperwork.
Here’s a list of top 50 international ports of the world.
Port Details-Login Required on Provider’s Site*
You need to be a licensed trader and exporter to sign-up on providers’ websites. Each operator has different requirements to verify your business and the export goods. Users will be provided with unique credentials to login on the site and access information.
Airports of the World
All airfreights are conducted through airports, from departure of goods to their arrival at the appointed destination. Airports allow secure and fast transportation of goods. Airfreight forwarding is an intense business and many exist in the form of websites. You can access information about airports from all over the world through some of the refined websites. Visit AZfreight to connect with some of the biggest and most successful airfreight forwarding companies in the world. AZfreight also serves as a directory to help you get in touch with freight providers from around the world.
Compare the schedules of different airfreight forwarding companies to find the one that matches your requirements the best. A new interface introduced by the American Shipper allows traders to track their shipments, keep tabs on their schedules and transit times, identify their carrier, etc. It includes route analysis of about 144 trade routes, 209 ocean carriers and, 810 ports.
For safety reasons, pre-shipment inspections are performed on the goods to be transported. During the inspection, inventory is taken and the quality and quantity of merchandise is checked. Additionally, the aspect of the product meeting the safety requirements of the market destination is checked. Goods are sampled through random selection for authentic results. After the inspection a report is generated which determines whether or not the goods can be transported.
Export Packing I
Packaging is an important component for export success. Products need to be packaged such that they do not get damaged during transportation. Packaging materials need to comply with the safety regulations so not all packaging materials can be used. You can find assistance regarding packing goods from specialists and advisory services from ITC which has been in this field for almost a decade.
Export Packing II
There are many demands from the packaging of goods when a product is shipped globally. When deciding on an export crate, certain aspects should be kept in mind:
· Breakage- it is important to make sure that the product and the packaging material will not break during the shipment. Use materials suitable to protect the product.
· Weight- the weight of the packaging material should be carefully considered as it may add to the weight of the product and increase the overall weight of the shipment. Exporters may have to pay extra fares if their weight is more than what was paid for.
· Moisture- moisture proof packaging materials should be used for packaging to prevent the goods from getting damaged during transportation.
· Pilferage- to reduce pilferage, precautionary measures such as installing a tracking device to monitor shipment, tags to track individual packages in the shipment, automated alerts and real-time shipment analytics should be implemented.
Most general cargo is carried in containers, but some is shipped in breakbulk. Besides the normal handling encountered in domestic transportation, a breakbulk shipment moving by ocean freight may be loaded aboard vessels in a net or by a sling, conveyor, chute, or another method, putting added strain on the package. In the ship’s hold, goods may be stacked on top of one another or come into violent contact with other goods during the voyage.
Moisture is a constant problem because cargo is subject to condensation even in the hold of a ship equipped with air conditioning and a dehumidifier. Keep in mind the cargo may also be unloaded in the rain. Not to be forgotten is the unfortunate events such as theft and pilferage.
When exporting a product keep in mind the following:
1. Strong containers, sealed and fully filled if possible to avoid breakage.
2. Even distribution of weight regardless of size.
3. Packages and packing fillers should be moisture resistant.
4. Pack goods on pallets if shipped via ocean.
5. Put brand name on packaging and consider the use of seals, strapping and shrink wrapping to avoid cases of theft and pilferage.
Some helpful packing tips for those new to exporting overseas or in bulk:
If you don’t have a container for your shipment one can be obtained from your carrier or private leasing.
Air shipments require less heavy packing than ocean shipments, in many instances standard domestic packing will be adequate.
Transportation cost are primarily determined by weight so try to make packing and reinforcements as weight conscious as possible.
If entering a new market, be sure to get information from buyer, government agency, freight forwarder etc. labeling requirements such as shipper’s mark, country of origin, handling marks etc.