TopAlpha Which of these forms of transportation is most profitable?
Transporting goods internationally, costs & prices
A successful international trade venture will help you expand your company, but after the sales are made you must deliver the goods. It is essential to get your products across quickly to your customers, and cheaply in order to grow your business. It is key to a cost-effective and efficient international arrangement to select the right mode of transportation.
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Examine the cost of your goods based on their size and weight closely. Also consider the speed of the delivery service, the distance, and the destination of the goods. Products with small but high value can be approached differently than those with large and low value.
Type of goods and international transport costs
Your choice of transport is heavily influenced by your type of goods and the needs of your business enterprise. Transporting goods in the right way will balance service, quality, cost, organization and time.
Transporting fresh goods (e.g. Fruits, vegetables, and fresh meat all require speed and time. These products should also be refrigerated when being transported.
Animal transportation requires you to adhere to specific rules and regulations. Safe and successful animal transportation can be achieved by following guidelines and clearances. The rigid procedures you need to follow when moving dangerous goods apply if your goods are considered dangerous.
Modes of transport in international trade
There are four main modes of international transport: road, sea, rail, and air. According to the type of goods being exported or imported, each mode has its own benefits, drawbacks, and requirements. 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
There is more flexibility in road transport than the other three modes. In general, tracking your goods is a lot easier, as is securing consignments, scheduling transport, and paying the appropriate fees. Alternatively, long distances are not time-efficient, especially if traffic is involved. It is possible to get your goods damaged in some countries due to high toll fees.
The cost of road transportation for large loads is generally 3 to 7 cents per ton per kilometer. The costs of owning your own truck, excluding the driver, can be around 1300 to 1900 USD per day. In the US, the cost of sending a package of 50 kg over a distance of 300 km is approximately 200 USD.
Cargo partners 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. When transporting goods by land, shipping containers could also be used. Despite the slow pace, weather changes, and inflexible routes and schedules, international travel may experience delays. Shipping containers by sea typically 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
Note that these are the prices from port to port. Land transportation may be more expensive. It is possible that rates are much higher for destinations affected by civil wars.
Cost of rail transport
Environmentally friendly, this mode of transport is often used on prosperous continents like Europe. Railways have rigid schedules, and mechanical failures may delay them. Some regions in the world do not have a reliable rail system, which is a disgrace for remote areas.
The cost of rail transportation is between 2 and 6 US dollarcents per ton per kilometer. Rail becomes the cheaper alternative for road transportation if a railway is available.
Cost of air transport
In international trade, air transport is the fastest way to ensure product delivery and distribution. Moreover, it is the most safest mode of transport, and you could export or import a variety of goods via it.
Weight and distance influence air transportation costs primarily. Shipping a package of 1 kg will cost you around 30 to 50 USD, whereas shipping a package of 10 kg may cost you over 70 USD, and shipping a package of 100 kg may cost you over 400 USD, if you use carriers like Fedex and UPS. When volumes increase, and especially when you can ensure enough packages to occupy the aircraft of these carriers, then prices can drop dramatically.
Customs regulations
For legal purposes, your goods must also be labeled and have the appropriate documents. It's important to classify your products with the right HS codes, as these determine how customs will treat your products and the import tariffs. For Singapore, four documents will do, while in Thailand, you will need ten.
An agent or distributor who also handles the import can be indispensable to smooth business operations.