Transportation of goods internationally, prices & other costs
International trade can help you expand your business, but once you have made the sales, you have to deliver. Customers will be more satisfied if you get your goods to them fast, and your financial results will be improved if they arrive inexpensively. Selecting the right mode of transport is therefore crucial to ensuring efficient and cost-effective international trade.
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You should pay attention to the weight and size of your goods. In addition, consider the speed of delivery, distance and destination. High-value products can be approached differently from large low-value ones.
Type of goods and international transport costs
A lot depends on what kind of goods you have to move and what your business requires. Transporting goods in the right way will balance service, quality, cost, organization and time.
Transporting fresh goods (e.g. Produce (fruits, vegetables, fresh meat) require speed and time. In order to transport these goods, refrigeration is also essential.
Animals must be transported in specific ways in order to comply with specific rules and regulations if your business involves them. Transporting animals safely and successfully is guided by guidelines and clearances. Whenever you move dangerous items, you must comply with the rigid procedures they entail.
Modes of transport in international trade
Road, sea, rail, and air are the four main methods of transporting goods internationally. Each mode has its advantages, drawbacks, and conditions related to the types of goods being exported or imported. Sometimes, you will have to use more than one mode of transport, or you will need to work with a freight forwarder.
Cost of road transport
The road transport mode is more flexible than the other three. When tracking your goods, securing consignments, scheduling transports, and paying applicable fees, it is relatively straightforward. Alternatively, long distances are not time-efficient, especially if traffic is involved. The possibility of having your goods damaged is also high in certain countries due to high toll charges.
Large quantities of road transportation cost about 3 to 7 US dollars per ton per kilometer. It may cost around $1300 to 1900 USD per day for a driver to operate such a truck if you want to own your own.
The Cargo In the US, if you plan to send just a package of 50 kg over a distance of 300km, that is likely to cost around 200 USD.
Cost of sea container transport
You can transport large volumes with less expense by shipping by sea, compared to the other three modes. Similarly, shipping containers can be used when transporting goods over land. The slow pace, weather shifts, and inflexible route and schedules may deter international travel. Transport by sea container usually costs:
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. A land transportation fee may be charged. Also, rates may be much higher for destinations where civil war is ongoing.
Cost of rail transport
Environmentally friendly, this mode of transportation is often used on prosperous continents like Europe. There are few options for flexibility in rail transport, and mechanical malfunctions may delay trains. The lack of a sound rail system is a huge setback for remote regions throughout the world.
Railroad transportation costs vary between 2 and 6 US dollarcents per ton per kilometer. When a railway is available, rail is a cheaper alternative to road transport.
Cost of air transport
International trade can be accomplished most quickly by air transport. Moreover, it is the most safest mode of transport, and you could export or import a variety of goods via it.
A flight's cost is primarily determined by its weight and 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. Volumes can grow, and if you guarantee a daily flow of packages to keep their aircraft occupied, then prices may drop.
Customs regulations
Legally, you must also label your goods and provide documentation. In essence, you have to classify each of your products with the proper HS code, so that customs can handle it and also determine 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
To ensure smooth operations, having a local agent or distributor also take care of the import can be essential.
