Transporting goods internationally, costs & prices
Having an international presence is the way to expand your business, but there is a delivery factor after you have made sales. For your financial success, you want to get your products across quickly and inexpensively to your customers. The right mode of transportation is therefore vital to the efficacy and efficiency of an international arrangement.
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Examine how much it will cost you based on the size and weight of your goods. In addition to speed of delivery, distance and destination, consider the availability of the product. When it comes to small high-value items, a different approach may be necessary than with large low-value products.
Type of goods and international transport costs
You must consider your type of goods, and the business requirements needed for your venture, when choosing your transport. Choosing the right transport method for your goods is key to driving balance between service, quality, cost, organization, and time.
Transporting fresh goods (e.g. Speed and time are necessary when handling fresh fruits, vegetables, or meat. Having these products refrigerated should be considered when transporting them.
Having a business that involves the transport of animals requires careful attention to specific rules. Safe and successful animal transport requires guidelines and clearances. It is your responsibility to follow strict procedures when handling dangerous goods.
Modes of transport in international trade
Four main modes of international transport exist: road, sea, rail, and air. Every export or import method is accompanied by its own advantages, disadvantages, and conditions. Often, there is a need to use more than one mode of transport, or to seek assistance from a freight forwarder to handle logistics.
Cost of road transport
Compared to the other three modes of transport, road transport is the most flexible. Keeping track of your goods, securing consignments, and scheduling transport is relatively easier and more convenient. Long distances are inefficient, especially when traffic is involved. There may be high toll fees associated with some countries, and your goods may get damaged as well.
When it comes to large amounts, road transportation costs between 3 and 7 US cents per ton per kilometer. It is estimated that the cost of having a truck per day may range between 1300 and 1900 USD, excluding the driver. For example, if you want to send a package weighing 50 kg over a distance of 300 km, this will probably cost you around 200 dollars in the US.
Cost of sea container transport
By shipping by sea, you can move large volumes at a lower cost than by any of the other three modes. Land transport of goods can also be done using shipping containers. The slow pace of international travel, weather shifts and inflexible routes and schedules could delay international travel. Shipping by sea container is usually priced as follows:
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
You should be aware that these are costs from port to port. Land transportation may be more expensive.
Frankfurt Cargo Travel to destinations with civil wars may also be more expensive.
Cost of rail transport
It is an environmentally friendly mode of transport that is often used on continents like Europe that are prosperous. 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.
Train transportation is priced between 2 and 6 cents per ton per kilometer. Therefore, rail transport is cheaper than road transportation, in case a railway is available.
Cost of air transport
When shipping products internationally, air transportation is the fastest and most reliable option. Moreover, it is one of the safest methods of transport, and you can export or import a variety of goods using this mode.
Transporting goods by air is most expensive if they weigh more than their distance. The cost of shipping 1 kg may be between $30 and $50 using carriers like Fedex and UPS; 10 kg may be between 70 and 90 dollars; and 100 kg may be over $400 dollars. The prices may drop dramatically if volumes increase and especially if one can guarantee a daily stream of packages to keep the aircraft of these carriers occupied.
Customs regulations
Legally, you must also label your goods and provide documentation. You will want to classify your products according to their HS code, as this will determine the way customs will handle them and also their import tariffs. Custom procedures and the number of needed forms vary by country: to enter Singapore you only need four documents, to enter Thailand you need ten.
It may be essential for smooth business operations to work with a local agent or distributor who also coordinates the importation.
