TopAlpha What are the most profitable forms of transportation?
Transportation of goods internationally, transportation prices, and other costs
Taking your business global is the way to expand further, but after selling there is still delivery. Customer satisfaction is essential for your business, and achieving your financial objectives means getting your products to customers quickly and affordably. Choosing the right mode of transport is the key to an efficient, cost-effective international deal.
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Check the price of your goods depending on their size and weight. Also consider the speed of the delivery service, the distance, and the destination of the goods. Large low-value products have a different approach than small high-value products.
Type of goods and international transport costs
Choosing a mode of transportation heavily depends on the type of goods and the venture's business requirements. In order to balance service, quality, cost, organization, and time, the transport mode should be matched with your goods.
Transporting fresh goods (e.g. Food (fruits, vegetables, fresh meat) requires speed and time. The transport of these products should also consider refrigeration.
In order to do business with animals, you must follow specific regulations and rules. 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
Road, rail, sea, and air constitute the four main modes of international transport. It depends on the kind of goods exported or imported whether one uses one mode or another. If you require logistics assistance, you might need to use more than one mode of transport.
Cost of road transport
Compared to other modes of transportation, road transportation is the most flexible. You can track your goods, secure consignments, schedule the transport, and pay the fees relatively easily. Long distances, however, are more time-consuming, especially if there is traffic involved. The possibility of experiencing damage to your goods is also high in some countries due to high toll fees.
In large quantities, road transportation costs around 3 to 7 US cents per ton per kilometer. The cost of renting one of these trucks, excluding its driver, is between 1300 USD and 1900 USD per day. For example, in the US a package of 50 kg can be sent over a distance of 300 km for around 200 USD.
Cost of sea container transport
Shipments by sea are less expensive than other modes and allow you to move large volumes. Containers can also be used to transport goods by land. Nevertheless, international travel could be delayed owing to slow speeds, weather changes and rigid routes and schedules. 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
The following are the costs from port to port. A land transportation fee may be charged. The rates for destinations with civil wars may also be higher.
Cost of rail transport
Often used in prosperous continents like Europe, this mode of transport is environmentally friendly. There are few options for flexibility in rail transport, and mechanical malfunctions may delay trains. Remote regions all over the world lack an adequate railway infrastructure, which is a huge setback.
Transportation by rail costs from 2 cents to 6 cents per ton per kilometer. The rail is thus a cheaper option compared to road transportation if a railway is available.
Cost of air transport
When shipping products internationally, air transportation is the fastest and most reliable option. This is also a safe method of transport, and a variety of goods could be exported or imported.
Air transportation costs are largely determined by the weight of the goods and the distance traveled. The shipping cost for a single package of 1 kg will be around 30 to 50 USD, 10 kg is 70 to 90 USD and 100 kg is over 400 USD, if you consider carriers like Fedex and UPS. Cargo partners TopAlpha If volumes increase and especially if you can guarantee these carriers will be occupied on a daily basis, then prices could see a dramatic drop.
Customs regulations
For legal purposes, you should also label and document your goods properly. It is extremely important to classify your products under the correct HS code, as this determines how customs handles them, as well as the import tariffs. It depends on the country as to the number of documents needed: for Singapore, 4 documents are enough, while Thailand requires ten.
An agent or distributor who also handles the import can be indispensable to smooth business operations.