Choose the best transportation mode for import-exporting

Whether you are in international or national trade, transportation is a vital component of your business. Without transportation, you cannot ship goods anywhere. Since choosing the best transportation mode for import-export is not easy, we are going to mention all the transportation modes, their advantages, and disadvantages. There are four ways of transporting:

• Air transport
• Road transport
• Water transport
• Rail transport

Road Transport

In comparison to other modes of transportation, road transport is the most flexible. Consignments can be tracked, transported in a secure and private manner, as well as scheduled and paid for accordingly.

This method provides flexibility and does not require further transshipment to deliver cargo from one place to another. It is convenient and easy to move motor vehicles across national borders.

Risks

• Various road and traffic rules in some countries
• Goods being damaged over long distance
• Traffic delays and breakdowns
• High toll charges in some countries
• More time is required for long distances

Rail transport

The rail transport system is an efficient and cost-effective way to move goods. In terms of regional trade and commerce activities, it plays a key role.  There are many advantages to rail transport, including low transport costs, an environmentally friendly process, and higher reliability compared to road transportation. Among the bulk items transported by rail are coal, iron ore, cement, fertilizer, raw material used in steel plants, finished steel products, and petroleum.

Risks

• They may cost more than road transport
• Rail depots may require additional transportation to the final destination, adding costs and affecting delivery schedules
• For remote regions especially, there can be inflexibility in routes and schedules
• Service disruptions can result from mechanical failures or industrial action

Sea transport

Historically, sea transportation is the oldest mode of transportation. They are known for their low cost and high capacity. This is an excellent method for shipping large quantities of objects over long distances without any regard to their delivery time. There is the possibility of delays in international transportation due to slow speed, environmental challenges, and inflexible routes & schedules.

Nonetheless, sea transportation includes fewer routes and higher costs for loading, unloading, and transshipping of commodities. Further transportation may be necessary to reach the final destination from seaports, and some additional costs may be required.

Air transport

Air transport ranks last among all modes of transport and is one of the newest. Fast delivery and distribution of goods are possible through this method.  Using this method of transportation, a wide variety of goods can be imported and exported since it is the safest method.

The cost of air transport is higher than other modes, and a number of items cannot be transported. Taxes also need to be paid at each airport. Although it is very expensive, traders nevertheless rely on it heavily. Also, transportation from the airport to the destination requires additional transportation.

Important factors when choosing a transportation mode for import-export

There are numerous factors affecting how to transport goods when they are exported and imported, including weight, value, size, and the kinds of goods. There are several factors to consider when choosing a mode of transport:

Transportation cost

Transport costs vary according to the kind and amount of the goods. For transporting bulk products to a far destination rail transport will be the best choice while for light and valuable products air transport is a wise choice. Shipping products across borders by sea cost less when there are high volumes to be transported.

Reliability and regularity of services

Selecting a transport mode that is reliable and regular is important. Decisions are influenced by the urgency and speed with which products must be delivered.

Availability

Accessibility should take into consideration how transport will be done from door to door. This depends largely on the state and quality of the transport infrastructure.

Security

How capable is the transport system in protecting the products from any damage, complete destruction, and loss? In addition to accidents, security considers possible crimes from the time goods are loaded to their shipment to their final destination. Compared to other modes of transportation, sea transportation is riskier.